We are very satisfied to see that Nandasoft today announced that achieved a turnover of approximately RMB404,115,000 for the nine months ended 3h September 2012. This represents an approximately 33.4% increase as compared with that of the corresponding period in 2011. Net profit was around RMB 14,749,000.
For the three months and nine months ended 30th September 2012, the unaudited turnover was RMB164,668,000 and RMB404,115,000, respectively representing an increase of RMB24,108,000 and RMB101,190,000, or 17.2% and 33.4% in turnover as compared with that of the same period in 2011.
The company made its announcement after the close of trading in Hong Kong today, and the stock price closed slightly up at .34 cents per share prior to the earnings results.
The results are in line or slightly above our expectations and confirm our TP for this company of $.9 per share. This is a small company, but one we think has huge growth potential. We will continue to allocate funds to purchasing this stock until it reaches the target price or until our total portfolio allocation of this stock reaches 5% of our China portfolio. From the trading patterns prior to the announcement we don’t see any evidence of insider trading or information leakage, which is a factor we also like when we consider a company’s governance.
The report noted that the company continued to focus on research and development of mobile communication applications, and that it was focused on developing an electronic government procurement system based on an android tablet PC, but also that it was researching and development on Mobile Virtual Desktops with the aim of achieving seemless operation of the desktops of desktop computers, tablet computers and mobile phones.
Nandasoft also commented on the research and development of Smart Home based on its concept of the “Internet of Things”, which aims to connect household appliances through platform software via devices such as PCs, mobile phones and tabets.
The Company continued to research and develop on the secured electronic document management system based on domestically produced hardware and software.
Nandasoft’s areas of focus are all areas that we believe are very strategically placed to benefit from Government support over the next few years, along with the trend and opportunities that come with cloud computing.
Nandasoft’s website is here: http://www.njusoft.com Details of Nandasoft’s earnings announcement here: http://www.hkexnews.hk/listedco/listconews/gem/2012/1102/GLN20121102175.pdf
We reiterate our valuation of Nandasoft as $.9 per share.
No comments:
Post a Comment