Geong (LON:GNG) was founded in August 2000 and has been listed on the London Stock Exchange since June 2006.
Geong International is an internet software company with focus on enterprise content management systems. Geong International focuses on providing consultancy services to large multi-national companies helping them to integrate local best practices into global smart platform technologies.
Geong operates primarily in two business segments:
- PortalAge: PortalAge is a customised software system which focuses on large enterprises. PortalAge was originally developed in 2000 as a SaaS (Software as a Service) model and now includes customer experience, social network computing and application management service modules.
PortalAge is project and service-based. Geong also provide consultancy services with PortalAge. - SmartBox: SmartBox is Geong's off-the-shelf software product which addresses management issues for Small and Medium Enterprises and has more than 130,000 licensed end users.
Geong has operations in Beijing, Shanghai and Guangzhou as well as Canada. Its subsidiaries include Conceptual Approach Ltd., Geong Business Networks Ltd and Gorn Information Technology Ltd.
In the six months to 30/9/10 Geong has increased pre-tax profits by 16.6% from £571,000 to £667,000 on turnover down 18% from £6.5m to £4.7m. Gross margins rose from 36% to 50%. Earnings per share have risen from 1.26p to 1.31p and it has been confirmed that full year results are likely to be in line with the market expectations.
The results for the full year which ends 31/3/11 are due to be announced on 1/7/11. Pre-tax profits are forecast to be around £2.4m compared with £2.3m previously. This implies that the shares are currently trading on a prospective PER of 6.0. Looking to 2012, pre-tax profits are expected to rise to £3.0m with earnings per share of perhaps 7p a forward PER of 4.9, at which level the shares look very undervalued.
