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Gall & Eke reckons that investors should take a look at Geong International. It is a leading provider of content management software and solutions and possesses the second-largest market share of collaboration software products in China, according to the China Centre of Industry Development. Geong’s products are provided to a wide range of companies including the top five Chinese banks and two of the top three Chinese futures exchanges, as well as multinational corporations such as IBM and Dell.

Geong recently strengthened its core market through contracts with Haitong Securities and China Asset Management and has reached agreements with Volkswagen and Shanghai General Motors – deals that mark its expansion into the automobile sector. Geong’s first half results were also impressive, with gross profit up 51 per cent to $1.55 million. The multitude of recent contract wins, coupled with the company’s impressive results, demonstrate strong growth potential. Currently trading at a 12-month rolling forward p/e of approximately 11, with earnings growth of 22 per cent, the stock is attractive.

The markets within which Geong operates are forecast for strong growth, particularly China’s information and technology sector. Gall & Eke believes that this, when combined with the implementation of Geong’s strategy to gain penetration into the second tier of Chinese banks, will provide a catalyst for rapid revaluation of the shares. (Gall & Eke associates are holders of this stock.)

GEONG International	AIM	£8.83m	28.00p	-2.50p
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Other company articles:
Four deals for fast-growing Geong			16/06/2008
Seymour Pierce			01/04/2008
Gall & Eke Corporate Partners			03/04/2007
GEONG in China bank deal			21/11/2006
Newcomer - International			23/06/2006