(CFSG) China Fire & Security Group – Earnings Are on Fire

September 17th, 2009

China Fire & Security Group (CFSG) continues to push higher, aided by its government’s stimulus plan and new legislation.

Company Description

China Fire & Security Group makes and maintains fire safety systems and products for industrial use in China.

Earnings…on Fire

Sorry the pun was too tempting. On Aug 10 the company reported second-quarter results that included a 37% increase in revenue, to $22.7 million. Contract volume is up to 205 for the quarter, compared to 177 in the same period last year.

Net income rose $1.7 million, or 25%, to $8.3 million for the period. This equated to 29 cents per share, 6 cents higher than the Zacks Consensus Estimate and 5 cents higher than last year.

Help From the Stimulus Plan

China Fire’s CEO, Brian Lin, said, “I am very pleased with our second quarter results. The Chinese government’s stimulus plan and the new amendment to the Fire Protection Law, which requires all fire protection products to pass compulsory product certification, has improved demand for our high quality systems, and increased bidding activities from our Tier-1 customers.”

Estimates Pop

Following the report the Zacks Consensus Estimate for this year rose to $1.05, up from 97 cents. Next year’s estimates are averaging $1.30, up from $1.19.

These projections show expected growth rates of 21% and 23%, respectively.

Solid Value

Shares of CFSG are trading at roughly 16 times forward earnings. Not too bad considering the growth rates bring the PEG down to about 0.6 times. Both figures are better than the industry and S&P average.

The Chart

Some see a run up in shares of CFSG and feel they may have “missed the party” but as you can see the volume has grown substantially, meanings this level is sustainable and the stock can continue higher from here.


Zacks Investment Research
View original at: Zacks.com News Feed

More on this topic (What's this?)
Scary: Why China is Buying Gold Like Mad (Learn Mining News, 1/30/12)
China’s Factories Improve (Wall Street Daily, 2/1/12)
Quicknote (plus CFSG shoptalk) (Centrifugal Deforest, 9/16/09)
Quicknote (Centrifugal Deforest, 9/17/09)
Read more on Investing in China, China Fire & Security GP at Wikinvest

Related Posts:

  1. (GE) General Electric to Sell Security BusinessGeneral Electric (GE) is arranging to sell its security business, which makes alarms, surveillance systems...
  2. (UTX) United Technologies Reaches ChinaYesterday, a unit of United Technologies Corp. (UTX), UTC Fire & Security (UTCFS) Incorporatedreased its...
  3. (AAPL) iPhones Catch Fire the Wrong Way? – several incidents of exploding iPhones and iPodsRecently, several incidents have been reported against exploding Apple Inc. (AAPL) iPhones and iPods. The...
  4. ($IBM) IBM Explores Analytics Space – working with the fire and police department to prevent crime and fire accidentsInternational Business Machines Corp. (IBM) recently announced plans to launch analytics solutions for federal, state...
  5. (CFL) Brinks Home Security Holdings – security alarm systems for residential and commercial propertiesBrinks Home Security Holdings, Inc. (CFL) recently eclipsed its all-time high after crossing above the...
  6. (ASEI) American Science & Engineering – cargo inspection systems for port and border security, baggage screening and aviation securityAmerican Science & Engineering (ASEI) shares received a nice boost thanks to the company’s strong...


Search Posts by Tag: | | Featured

RSS Feeds by Tag: CFSG | China Fire & Security Group | Featured |

Other Posts by: | RSS Feed for this author