I bought some GNG recently at 18p (price now up to 26p) given:

- excellent trading update giving a current year P/E of 8 or 9 on likely 3p-3.5p EPS
- 2.6p historic EPS to 31/3/06 and a historic P/E of 10
- contract wins announced post-IPO in June 2006
- 1.9m of net assets, with 820k of cash, against a 6.8m m/cap
- results to be announced 28th November following the trading update

Here's the trading update:
http://www.investegate.co.uk/Article.aspx?id=20061031080000P4198

I gather GNG's CEO and CHairman (both superb English speakers) will be over here next week to tour the City, give press interviews etc.

GNG intended to raise $7m at IPO, but raised only 500k due to terrible matket conditions at the time in June. Despite this they've now announced that they're almost going to meet the broker's estimates as calculated on raising the full $7m.

GNG should now be on course to make around 3p-3.5p EPS this year to March'07. This leaves them on a current year P/E of only around 8 or 9.

Heres their IPO RNS from 23rd June 2006 (the Board of Directors is extremely impressive):

http://www.investegate.co.uk/Article.aspx?id=20060623081500PF52B

This is what GNG do:
GEONG has established itself as one of the market leaders in the Peoples Republic of China in providing content management solution software products and related services for large enterprises. GEONG's flagship product range, the GEONG PortalAge series, is used by the top 5 Chinese banks and 12 out of the top 20 securities firms in China. It is an enterprise server software product which combines a number of optional business solution components and customisation modules that can be used to provide individual solutions for a range of industries including those that require real-time or time critical applications such as internet banking.

Note the wording a range of industries.

In slightly more detail, GNG has a 6.8m m/cap, with 26.12m shares in issue.

GNG made $1.28m post-tax profit for the year to 31/3/06. At $1.87 that's 685k, or 2.6p EPS, for a historic P/E of just 10.

The brokers forecast on IPO was for $1.89m post-tax profit this year to 31/3/07, or around 3.7p EPS, for a P/E of just 7.

And per the pro forma in the prospectus GNG had at 30/4/06 1.9m of net assets, including 820k of cash, against the current 6.8m m/cap. Thus the continuing business making a $1.28m historic profit after tax is valued at just 4.9m.

The prospectus noted that GNG are trading in line, and there's been some excellent announcements post-IPO at the end of June to indicate that things are continuing to go well:

July : a $350k contract win with Huawei-3Com, who employ more than 4,500 people worldwide:
http://www.investegate.co.uk/Article.aspx?id=20060724074128PFD9C

October : a $500k contract win with Air China:
http://www.investegate.co.uk/Article.aspx?id=20061018071237PC25A

In the same RNS, GNG stated that their solutions "are already being used by Shanghai Airlines and China Travel International and will allow us to gain a larger share in this fast growing sector."

October : core supplier status from IBM:
http://www.investegate.co.uk/Article.aspx?id=20061018071206PB237

November : new contract win with China's Bank of Communication (one of China's "Big Four" banks):
http://www.investegate.co.uk/Article.aspx?id=20061121070205P7788

The reason for the post-IPO fall is some of the pre-IPO $300,000 loan note holders from late 2005 turning their converted stock for a quick profit, and a complete lack of PR. GNG also raised less than they hoped for on IPO because they floated just after the FTSE had dropped calamitously from 6,100 in May to 5,600 - this of course also contributed to the artificial fall in the share price post-IPO.

Note also from the prospectus that 80.16% of the shareholders, including the directors, are locked in for from 6 months to a year, so there are only 5.2m shares in free float, or around 1m worth.

On a 6.8m m/cap, a company making 1m post-tax profit could have rather a long way to go imo. DYOR etc.

Corporate website : http://www.geong.com/Site/Home/EN

Looked at the website and noticed interims are out on Dec 30th--if they are good interest should rise.

Are you sure, MP? - the interims were released on 28th Nov.

sorry so I see..! Their website says 30th Dec so figures must have come out early check out the financial calendar in investor relations. Hope this does well as I sold some sola to buy here and look at them this morning!!!

Bought 37k @ 30p this morning but no trades showing as yet.zib

Making quite decent progress this morning: GNG Bid: 30p Offer: 31p Change: 1.5

I paid 32.15 for mine, so is good to see SP regaining some ground after the brief sell-off.

Getting better by the minute. Zib, your purchase clearly gave the market the kick it needed :o)

According to FT.com, somebody just paid 34p for a buy, which equals the high set at the end of Nov.

Wow: GNG Bid: 33p Offer: 35p Change: 5

What's going on out there?

EDIT: seems there are a few investors (speculators) over the road who are all piling in.

It's up 5p to 33p bid which is a jump of Renesola percentage proportions.

I've got a feeling we are into a good one here! hold on tight for a rewarding 2007 when the momentum gets going.

If the co manages a FY profit like that of last year, then it's on a PE of about 15 at the moment.

Experiencing a bit of a reversal at present. Anyone heard anything?

GNG Bid: 23p Offer: 25p Change: -2.5

I'm still in and looking to add when funds permit-I think this one is below the radar at the moment.

Why has this drop 10% today???

Hlyeo98, it's dropped because a few small sellers have no patience and there's been no recent "wow" "incredible" news flow to keep those impatient PI's happy! And because this is a relatively illiquid small cap stock where the MMs lower (and raise) the price disproportionately based on small volumes.

In October GNG said profits would be "only marginally below current market expectations, which were based upon a much higher level of funding being achieved in June." That must mean at least $1.5 million PBT for the year about to end on a 6.3m m.cap. The trading statement also suggests good PBT growth for the current year; up from $1.3m last year and $0.86m the year before, with $2.92m forecast for next year. How much would you pay for a growing company with those sort of profits?

At double the current 24p share price the m/cap would be 12.6m. A 48p share price on a likely 3p or more adjusted EPS for the year about to finish and 5.7p EPS forecast to 31/3/08 is hardly demanding - especially given that much of the current 6.3m m/cap is represented by cash and 1.8m of net tangible assets.

If you gave GNG a P/E of only 12 for next year's forecasts (which may be reduced slightly in the next broker note because less was raised at IPO than originally planned) the share price would be 68p, almost triple the current price. Even discounting by 50% the share price should be at 34p!

Only 2 months till the year end now - not long to build a decent position. The trading statement quoted above is all a patient investor should need to know to decide his position here imo.

Morning all. Good news: two RNS out today.

First RNS:

Geong International Limited - Re Contract
Embargoed: 07.00am, 29 January 2007

GEONG INTERNATIONAL LIMITED

NEW CONTRACT WINS

GEONG International Limited ('GEONG' or `the Company'), the AIM listed, Beijing
based, provider of content management software and solutions, announces that it
has signed a US$190,000 contract to provide its PortalAge software to FAW
Volkswagen (`FAW-VW') .

Under the terms of the contract GEONG's PortalAge software will be used to
streamline FAW-VW's content management systems by establishing a 'Collaborative
Platform' enabling information and data to be stored, managed and shared across
the organisation.

GEONG also announces that it has signed an extension to its maintenance
agreement with Shanghai General Motors (`SGM'). The agreement is expected to be
worth up to US$280,000 and runs until the end of November 2007.

The Company will provide SGM with product support and application maintenance
services for 'DMS II' (Dealer Management System Phase II); an ECM framework
designed and installed by GEONG in 2005.

Commenting on the two contracts, Wang Weidong, Chief Executive Officer of GEONG
, said: 'The automotive industry in China is experiencing very rapid growth and
is a sector where we have a strong presence. PortalAge is being used by the
regions top two automotive companies by sales, and is an area which should
prove lucrative going forward.'

-ends-

Second RNS:

Geong International Limited - Re Contract
Embargoed: 07.00am, 29 January 2007

GEONG INTERNATIONAL LIMITED

NEW CONTRACT WIN

GEONG International Limited ('GEONG' or `the Company'), the AIM listed, Beijing
based, provider of content management software and solutions, announces that it
has signed a one year service agreement with China Construction Bank (`CCB')
which the Directors estimate has the potential to be worth up to US$500,000.

Under the terms of the agreement, which commenced last month, GEONG will
provide its PortalAge products and services in all future Java platform
projects and help CCB improve its IT systems, especially in Portal, Enterprise
Information Portal and Customer services.

ECM software is an internet based suite of products that enables companies to
capture, manage, store, preserve and deliver content, documents and data across
thousands of users, processes and locations. GEONG will provide CCB with its
existing PortalAge solution for large enterprises.

Commenting on the agreement Wang Weidong, Chief Executive Officer of GEONG,
said: 'We are delighted to extend our successful relationship with CCB. GEONG
has proved itself capable of delivering first class ECM solutions and the
highest level of service to a number of Fortune 500 organisations.'

He added: 'Our PortalAge software is used by the top 5 Chinese banks and this
agreement reinforces our market leading position in the PRC's financial
services sector as well as providing stable and visible revenue streams for the
Company.'

-ends-

Good to have some more good newsflow on this after a bit of a quiet spell.

I'm not as up on the numbers as Rivaldo (thanks Riv for the breakdowns above!), but have a feeling that with current mkt cap only around 8 million, and only 26 million shares in issue, this could be cheap.

Current SP: GNG Bid: 28p Offer: 31p Change: 5.5

yes-nice to see some movement up in this one.

IMHO the potential for GNG is huge.

At 29p it's likely to be on a single-figure P/E for the year about to end in March '07, and is on a historic P/E for 2005/6 of only 11.2. On that basis alone GNG could be 50% higher.

Then factor in the 5.7p EPS forecast for the year about to start - even if you downgrade that to say 4.5p EPS we should be looking at a 50p minimum share price.

Then add in the revenue possibilities from the Chinese auto, insurance, airline, banking sectors etc etc.

Then add in the possibilities if SmartBox starts to sell across China, the Far East and Canada....

At a stroke today GNG have won $970k of business - that's almost 20% of last year's ENTIRE turnover.

And they've entered a new booming area in the Chinese auto sector, as well as reiterating their usage by the top 5 Chinese banks...

This is a 7m m/cap business which is cheap on fundamentals and has a solid Balance Sheet with net cash, yet has blue sky prospects across China and the Far East with the most amazing client list you could imagine for such a micro-cap.