CHINA ALL ACCESS (HK Stock code 00633) rated STRONG BUY by Hong Kong Stock.
Current price $1.58
Target price (12 months) $2.4
Target price (24 months) $3.5
CHINA ALL ACCESS is engaged in the provision of satellite communication application solutions and services, wireless data communication application solutions and services, and call centre application solutions and services.
The Group’s wireless data communication application solutions and services segment is showing stable growth. For example its intelligent information terminal (“Jinwutong”) and intelligent surveillance system. The “Jinwutong” business has also expanded from the traffic police application to various fields including fire control, logistics, public security and others, thereby further expanding the scope of the company's market. The business of intelligent surveillance systems is now focused mainly on traffic management, city management, thermal power, fuel gas and other industries.
CHINA ALL ACCESS's satellite communication application solutions and services segment is also showing steady growth. The company has developed more equipment compatible with satellite communication system, such as panoramic camera and satellite integration terminal to upgrade and improve the existing systems. They company is developing users in several new industries, including prison administration, reserve duty and water supply.
The company's call centre application solutions and services segment is small, representing approximately 1% of the total business. Customers were from various industries including telecommunications, banking, broadcasting and television industry and traffic control and others. We believe there are ongoing new opportunities in different provinces and different industries for this business.
We have strong confidence in the company management structure, a factor that is important to us when we select companies to invest in.
Current price $1.58
Target price (12 months) $2.4
Target price (24 months) $3.5
CHINA ALL ACCESS is engaged in the provision of satellite communication application solutions and services, wireless data communication application solutions and services, and call centre application solutions and services.
The Group’s wireless data communication application solutions and services segment is showing stable growth. For example its intelligent information terminal (“Jinwutong”) and intelligent surveillance system. The “Jinwutong” business has also expanded from the traffic police application to various fields including fire control, logistics, public security and others, thereby further expanding the scope of the company's market. The business of intelligent surveillance systems is now focused mainly on traffic management, city management, thermal power, fuel gas and other industries.
CHINA ALL ACCESS's satellite communication application solutions and services segment is also showing steady growth. The company has developed more equipment compatible with satellite communication system, such as panoramic camera and satellite integration terminal to upgrade and improve the existing systems. They company is developing users in several new industries, including prison administration, reserve duty and water supply.
The company's call centre application solutions and services segment is small, representing approximately 1% of the total business. Customers were from various industries including telecommunications, banking, broadcasting and television industry and traffic control and others. We believe there are ongoing new opportunities in different provinces and different industries for this business.
We have strong confidence in the company management structure, a factor that is important to us when we select companies to invest in.
China All Access is audited by one of the "big 4" accounting firms, namely KMPG, a fact that we think adds value in terms of the reliability of the company's earnings (always important to us as we look at to find companies with China business that we believe are undervalued based on reported financials).
We love the growth, technology, and area of business focus of CHINA ALL ACCESS and think it has great opportunities ahead over the next decade. The company is poised to do well In view of the government’s policy of promoting information technology industry and the fast growing market demand for such products and services.
The company's operating profit margin and net profit margin has grown strongly since 2009. The company has also increased it dividend payout % over this time (which we generally like) although with this type of company we are also quite happy to see it retain earnings for reinvestment for future growth.
Turnover, operating profit, and net profit has increased consistently ever year since 2007. A trend we love to see as value investors.
PE is 6.3 which we feel is cheap for a company with this kind of growth potential.
The company trades around is current NAV of $1.38.
We believe that as this company continues to perform and grow it will attract investor interest as funds flow back into China stocks. We will therefore accumuluate this stock over the coming year with a $2.4 target in mind for 12 months, and a $3.5 target in mind for 24 months.
We love the growth, technology, and area of business focus of CHINA ALL ACCESS and think it has great opportunities ahead over the next decade. The company is poised to do well In view of the government’s policy of promoting information technology industry and the fast growing market demand for such products and services.
The company's operating profit margin and net profit margin has grown strongly since 2009. The company has also increased it dividend payout % over this time (which we generally like) although with this type of company we are also quite happy to see it retain earnings for reinvestment for future growth.
Turnover, operating profit, and net profit has increased consistently ever year since 2007. A trend we love to see as value investors.
PE is 6.3 which we feel is cheap for a company with this kind of growth potential.
The company trades around is current NAV of $1.38.
We believe that as this company continues to perform and grow it will attract investor interest as funds flow back into China stocks. We will therefore accumuluate this stock over the coming year with a $2.4 target in mind for 12 months, and a $3.5 target in mind for 24 months.
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