China Fire & Security Group (CFSG)

[lmcat]

China Fire & Security Group, Inc. On Tuesday May 4, 2010, 7:30 am EDT
BEIJING, May 4 /PRNewswire-Asia/ -- China Fire & Security Group, Inc. (Nasdaq:CFSG - News) ("China Fire" or "the Company"), a leading total solution provider of industrial fire protection systems in China, today announced that it plans to report its first quarter 2010 financial results on Monday, May 10, 2010 before the market opens. The Company will also hold a conference call to discuss the financial results the same day at 8:00 a.m. U.S. Eastern Time.

Listeners may access the call by dialing #1-719-325-4814. To listen to the live webcast of the event, please go to http://www.chinafiresecurity.com and click on the Investor Relations section or the link http://viavid.net/dce.aspx?sid=000074D5 where conference calls are posted. Please go to the link 15 minutes early to download and install any necessary audio software.

A replay of the call will be available from May 10, 2010 to May 17, 2010. Listeners may access the replay by dialing #1-719-457-0820, passcode: 3688604.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ:CFSG - News), through its wholly owned subsidiary, Sureland Industrial Fire Safety Limited ("Sureland"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, power, petrochemical and transportation industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has a comprehensive portfolio of patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 430 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecurity.com .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.


For more information, please contact:

China Fire & Security Group, Inc.
Amy Gao, Investor Relations
Tel: [phone]
Email: [e-mail]

[lmcat]

China Fire & Security Group is a leading provider of industrial fire protection systems in China. The company’s strong position in the industry has enabled it to win a high percentage of its bids, which is around 60%-70% of bids in the iron and steel industry.

Management reiterated its revenue guidance for fiscal year 2010. It expects revenues to grow 66% to 78% year over year and in the range of $135 million to $145 million. Net income is estimated to grow at a rate of 89% to 105%. Thus, net income for fiscal year 2010 is expected in the range of $47 million to $49 million and EPS in the range of $1.65 to $1.70.

Though the company has been primarily serving the iron and steel industry, it is now looking at expanding into other industrial sectors such as transportation, marines, nuclear energy, and petrochemical.

[lmcat]

We have a bonfire - up .60 today!
lmcat

[lmcat]

Finally somebody lit a match under this, up .40 today. Now we need a bonfire!
lmcat

[skudaddy]

In the long run, this company will emerge as a leader without a doubt.. Any idea why they had a negative cash flow in Q1??

[*MARINE 1*]

Great, Now all we need is some Green :)

[skudaddy]

BEIJING, Aug. 12 CFSG-Signs-Contract

BEIJING, Aug. 12 /Xinhua-PRNewswire-FirstCall/ -- China Fire & Security
Group, Inc. (Nasdaq: CFSG) ("China Fire" or "the Company"), a leading
industrial fire protection product and solution provider in China, announced
today that the Company has signed a new total solution contract with Xinyu
Iron and Steel Co., Ltd. ("Xinyu Iron and Steel"), valued at approximately
$4.7 million.

Xinyu Iron and Steel, headquartered in Xinyu City, Jiangxi Province, is
the 23rd largest iron and steel company in China with annual capacity of 15
million tons of iron and steel products in 2007, one of the largest
state-owned companies in China.

China Fire will serve as a total fire protection solution provider in the
Phase III expansion project of Xinyu Iron and Steel with total contract value
at approximately $4.7 million. China Fire will be responsible for implementing
the entire fire protection project including engineering, procurement,
construction, monitoring, technical guidance and maintenance. China Fire will
provide a turnkey fire protection system that mainly includes the Company's
analog linear fire detectors, multi-frequency infrared flame detectors,
fire-alarm monitoring and control system, and water mist fire-extinguishing
system. These systems will ensure that the entire production facility is safe
from fire hazards and fully compliant to the new fire codes for the iron and
steel industry. The project is expected to be completed within the next nine
months.

"We are very excited about the opportunity to provide our turnkey fire
protection system to Xinyu Iron and Steel, a new customer of China Fire. China
Fire has been focusing on top tier iron and steel companies in China and has
been receiving repeat business from them. We are committed to deliver our best
services to Xinyu Iron and Steel and hope to be a long term partner down the
road," commented Mr. Brian Lin, CEO of China Fire.


About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (Nasdaq: CFSG), through its wholly owned
subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin
Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution
provider of industrial fire protection systems in China. Leveraging on its
proprietary technologies, China Fire is engaged primarily in the design,
manufacture, sales and maintenance services of a broad product portfolio
including the detectors, controllers, and fire extinguishers. Via its
nationwide direct sales force, China Fire has built a solid client base
including major companies in the iron and steel, power and petrochemical
industries throughout China. China Fire has a seasoned management team with
strong focus on standards and technologies. Currently, China Fire has 52
issued patents covering fire detection, system control and fire extinguishing
technologies. Founded in 1995, China Fire is headquartered in Beijing with
about 500 employees in more than 30 sales and project offices throughout China.


Cautionary Statement Regarding Forward-looking Information

This presentation may contain forward-looking information about China Fire
& Security Group, Inc. and its wholly owned subsidiary Sureland which are
intended to be covered by the safe harbor for forward-looking statements
provided by the Private Securities Litigation Reform Act of 1995. Forward-
looking statements are statements that are not historical facts. These
statements can be identified by the use of forward-looking terminology such as
"believe," "expect," "may," "will," "should," "project," "plan," "seek,"
"intend," or "anticipate" or the negative thereof or comparable terminology,
and include discussions of strategy, statements about industry trends and
China Fire & Security Groups' future performance, operations and products.
This and other "Risk Factors" are contained in China Fire & Security Groups'
public filings with the SEC.

For more information, please contact:

China Fire & Security Group, Inc.
Robert Yuan, Chief Accounting Officer
Tel: [phone]
Email: [e-mail]
Web: http://www.chinafiresecurity.com


SOURCE China Fire & Security Group, Inc.

[skudaddy]

China Fire & Security (CFSG) Tops Q2 EPS View by 4c; Raises FY08 Guidance

More News related to CFSG
China Fire & Security (CFSG) Tops Q2 EPS View by 4c; Raises FY08 Guidance
China Fire & Security Group, Inc. Announces Second Quarter 2008 Financial Results and Raises 2008 Full Year Guidance
China Fire & Security (CFSG) Awarded $4.7 Million Contract From Xinyu Iron and Steel
China Fire & Security (CFSG) Awarded $4.7 Million Contract From Xinyu Iron and Steel
China Fire & Security Group Signs $4.7 Million Contract with Xinyu Iron and Steel Co., Ltd.
More News related to CFSG

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China Fire & Security (CFSG) Tops Q2 EPS View by 4c; Raises FY08 Guidance
NVIDIA (NVDA) Reports Mixed Q2 Earnings; Adds $1B to Buyback
Tufco Technologies (TFCO) Reports Q3 Earnings
More News related to Earnings
August 12, 2008 4:38 PM EDT

China Fire & Security Group, Inc. (Nasdaq: CFSG) reports Q2 non-GAAP EPS of $0.24, 4 cents better than the analyst estimate of $0.20. Revenues for the quarter were $16.7 million, versus the consensus of $16.70 million.

Raises its FY08 sales and EPS guidance from $66.6 million to at least $68 million and from $0.78 to $0.84, respectively. The Street estimates are $67.64 million for sales and $0.80 for EPS.

China Fire & Security Group, Inc., through its subsidiaries, engages in the design, development, manufacture, and sale of fire protection products and services for industrial customers in China.

[skudaddy]

I think CFSG is on a roll here lol as long as no more dirt comes out about Brian then it should be smooth sailing IMO

[*MARINE 1*]

Nice push!!

[*MARINE 1*]

this gives a good picture on how they've been pulling numbers

http://ih.advfn.com/p.php?pid=financials&btn=annual_reports&ihsymbol=&ihpagelist=Quote&ihbtn=Get+Quote&symbol=N%5ECFSG










Top!

http://investorshub.advfn.com/boards/board.aspx?board_id=11687

[skudaddy]

U think we see .20 EPS this quarter?

[*MARINE 1*]

kept it posted. it's been on a roll :) :)

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31250110

[skudaddy]

Cuban is gone, out!!

[skudaddy]

http://www.fool.com/investing/international/2008/07/29/mark-cuban-should-be-better-than-this.aspx

[skudaddy]

I think CFSG has awoke! Lets go people

[skudaddy]

yeah i thought it would bounce back

[*MARINE 1*]

looking good guys :)

[skudaddy]

http://sharesleuth.com/2008/03/china_fire_security_group_inc_1.html

[skudaddy]

Damn 52,000 bid @ $11??????

[skudaddy]

China Fire Announces Preliminary Results for the Fourth Quarter and 2007 Year End and Provides Initial Guidance for 2008
Friday February 15, 7:30 am ET
-- Record yearly revenues, increased approximately 43%
-- GAAP net income increased approximately 141% over 2006
-- 2007 results exceeded company's prior guidance
-- Strong backlog of $62 million at the end of year 2007
-- Revenue is expected to increase 44% in 2008


BEIJING, Feb. 15 /Xinhua-PRNewswire-FirstCall/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG - News; "China Fire" or "the Company"), a leading industrial fire protection products and solutions provider in China, announces preliminary results for the fourth quarter and year end 2007. The Company is also pleased to provide guidance for financial results for fiscal year 2008.
ADVERTISEMENT


For the year ended December 31, 2007, the Company expects to report revenues of approximately $46.3 million, an increase of more than 42% compared to $32.5 million for the same period of the prior year. The Company estimates GAAP net income for 2007 will be approximately $16.8 million, an increase of 141% over $7.0 million last year. Excluding the one-time credit of approximately $1.2 million from the change in fair value of derivatives, the pro forma net income was $15.6 million for year 2007, representing an approximately 83% increase over the prior year. At the end of year 2007, the backlog value was approximately $62 million, which was carried into 2008.

For the fourth quarter, the Company expects to report revenue of approximately $13.7 million, an increase of more than 45% over $9.4 million for the same period last year. The Company estimates the GAAP net income for the fourth quarter was approximately $4.0 million, compared to a loss of $0.4 million for the same period last year. The pro forma net income was approximately $4.0 million for fourth quarter of 2007, representing an increase of approximately 239% over $1.2 million of the previous year fourth quarter.

"China Fire & Security's core business serving the Chinese iron and steel industry remains very strong. We do not anticipate any impact from a downturn in the United States economy; our customers are building capacity and upgrading existing plants to meet domestic demand. In addition, we are expanding into other sectors including transportation and nuclear power plants. The Company is also signing agreements with distributors in India to sell our LHD as well as our fire extinguishing products and systems," commented Mr. Brian Lin, CEO of China Fire.

"Based on the strong backlog and favorable current business outlook, we expect, in fiscal year 2008, revenue will be at least $66.6 million, representing an improvement of approximately 44% above 2007. Net income is expected to be at least $22.3 million, and fully diluted earnings per share are expected to be at least $0.78. These projections are based on generally accepted accounting principles (GAAP). On a pro forma basis (excluding credit/loss from the change in fair value of derivatives), the net income for year 2008 is expected to increase approximate 43%," commented Mr. Brian Lin, CEO of China Fire.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (Nasdaq: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sale and maintenance services of a broad product portfolio including detection, controller, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in the iron and steel, power and petrochemical industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 43 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales offices throughout China.

Cautionary Statement Regarding Forward-looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Results for fourth quarter and year end 2007 are preliminary and not audited; final results may differ. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" contained in China Fire & Security Groups' public filings with the SEC.


For more information, please contact:

China Fire & Security Group, Inc.
Robert Yuan, Chief Accounting Officer
Tel: [phone]
Email: [e-mail]

[deathtotaxes]

CFSG - found this on InvestorsVillage

Zacks.com Buy China Fire & Security
Zacks.com
Buy China Fire & Security
Friday February 1, 11:28 am ET
By Paul Cheung, CFA


As the leader in China's industrial fire safety market, China Fire & Security (NasdaqCM: CFSG) is well-positioned to leverage the growth potential in this market. Its revenue and earnings have exceeded the market consensus for two consecutive quarters since the market started to cover this company in July 2007.

We believe that CFSG can grow its earnings at 30% annually in the next five years. We don't think its current price fairly reflects the company's growth prospects. So we are initiating coverage of CFSG with Buy rating.

The stock is currently trading at 13.7x our estimate for fiscal year 2008 earnings per share, which is much lower than the industry mean. Using a P/E multiple of approximately 20.0x our fiscal year 2008 earnings per share estimate yields a target price of $15.00, which we believe reflects the company's growth prospects.

[deathtotaxes]

Piper Jaffray adds China Fire & Security (Nasdaq: CFSG) to its Alpha List and maintains a Buy rating and $18 price target.

The firm cited several catalysts that should drive shares of China Fire & Security higher within the next few months:
1. the Company has a "healthy backlog" of orders, which provides excellent earnings visibility going into 2008;
2. China Fire & Security's high level of earnings visibility could create upside potential to earnings estimates;
3. new contract wins will provide positive catalysts for China Fire in the near-term; and
4. concerns about the weakening U.S. economy have caused investors to become more interested in Chinese stocks, "yet valuations still remain attractive relative to growth."

Piper Jaffray's $18 price target on China Fire & Security is based on 17x and 14x its FY08 and '09 EPS estimates, respectively, representing a sharp discount relative to the firm's 40% expected operating profit growth rate for the next two years.

China Fire & Security Group, Inc. engages in the design, development, manufacture, and sale of various fire safety products for the industrial fire safety market in the People's Republic of China.

[deathtotaxes]

Roth Conference highlight video on CNBC

http://video.msn.com/video.aspx?mkt=en-us

search for Gordon McBean Erin Burnett


or http://www.cnbc.com/id/15840232?video=601818666 (this did not work for me)


CFSG is the last company discussed on the video.

[deathtotaxes]

[deathtotaxes]

motley fool today:

Tiny China Fire & Security, for example, is just a $250 million company, yet it's helping the government write new industrial fire codes and winning big contracts from giants such as PetroChina (NYSE: PTR), Wuhan Iron & Steel, and Handan Iron & Steel as they build out infrastructure in the west. Multinationals such as Honeywell (NYSE: HON) and Tyco (NYSE: TYC) simply don't have the same connections.

That's a big advantage for a small company to have, and it's an advantage unique to Chinese firms operating in China.

[deathtotaxes]

China Fire & Security Group, Inc. Announces $7.0 Million Contract Wins, Provides Financial Guidance for 2007

China Fire & Security Group, Inc. Announces $7.0 Million Contract Wins, Provides Financial Guidance for 2007
Tuesday September 4, 7:30 am ET
-- New Contracts Valued at Approximately $4.1 million with Wuhan Iron & Steel Group and $2.9 million with Handan Iron & Steel Group
-- 2007 Financial Guidance (GAAP): revenue expected in the range of $44.5 million to $45.5 million and fully diluted EPS in the range of $0.53 to $0.54 per share

BEIJING, Sept. 4 /Xinhua-PRNewswire-FirstCall/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG - News; ''China Fire'' or ''the Company''), a leading industrial fire protection products and solutions provider in China, announced today that the Company has successfully secured two new contracts with Wuhan Iron & Steel Group (''Wuhan Steel'') and Handan Iron & Steel Group (''Handan Steel''), for a contract value of approximately $4.1 million and $2.9 million respectively. Following these contract wins, the Company is pleased to provide the estimated financial results for fiscal year 2007.

Contract Wins

Wuhan Steel, located in central China's Hubei province, is the third largest steel company in China with annual product output of over 10 millions tons. Handan Steel, located in Hebei Province, is one of the top 20 steel companies in China. Wuhan Steel is spending about $1.5 Billion for building four new plants in this year and Handan Steel are expanding into a new region building half a dozen new plants. Under these contracts, China Fire will provide total fire protection solutions for the first phase (two plants) of Wuhan Steel, and for the initial phase of Handan Steel's overall expansion spending about $1.3 Billion over the next two years. In all these contracts, China Fire provides the Company's state-of-the-art patented products including linear heat detectors (LHD), controllers and water mist systems. China Fire expects to recognize revenues from these new contracts over the next 12-18 months.

''We are excited to announce the new contract wins with Wuhan Steel and Handan Steel, reflecting the continuation of the existing business relationships, as we have already won over $18 million in cumulative contracts with these two companies in the past. With the introduction of the new fire codes for the iron and steel industry, we are working with our clients on building their new plants as well as retrofitting their existing facilities.'' commented Mr. Brian Lin, CEO of China Fire.

''These new contract wins demonstrate that China Fire is benefiting from the growth in the Iron and Steel industry in China as large steel companies are undergoing its expansion, relocation, and modernization. This trend has just started and is still in its early stage. We expect that China Fire will benefit more from this trend in the future,'' continued Mr. Brian Lin, CEO of China Fire.

2007 Financial Guidance

With the backdrop of the new contracts and based on the current business outlook, the Company expects, for the fiscal year 2007, the revenue will be in the range of $44.5 million to $45.5 million, the net income in the range of $14.7 million to $15.0 million, and the earnings per share in the range of $0.53 to $0.54 per share. These projections are based on generally accepted accounting principles (GAAP).

''As a company that has recently been listed on NASDAQ, we are pleased to provide an initial annual financial guidance for 2007. We have signed significant amount of contracts so far in this year, including the ones we just announced today, and expect to sign more during the remaining four months of the year. With the strong growth in our business across all industrial sectors, with iron and steel in particular, and with the $29 million backlog that was carried over from 2006, we are very comfortable about the numbers provided in the guidance. We will keep our guidance updated with major developments of our company in the future,'' concluded Mr. Brian Lin, CEO of China Fire.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (Nasdaq: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sale and maintenance services of a broad product portfolio including the detection, controller, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in the iron and steel, power and petrochemical industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 43 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China.

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" contained in China Fire & Security Groups' public filings with the SEC.

For more information, please contact:
China Fire & Security Group, Inc.
Robert Yuan
Investor Relations
Tel: [phone]
Email: [e-mail]

[deathtotaxes]

Repost from Investor Village

Motley Fool lists CFSG as a top 5 micro-cap stock

5 Top Micro-Cap Stocks

http://www.fool.com/investing/small-cap/2007/08/24/5-top-micro-cap-stocks.aspx

[deathtotaxes]

China Fire Reports Record Second Quarter 2007 Results
Tuesday August 14, 7:30 am ET

BEIJING, Aug. 14 /Xinhua-PRNewswire-FirstCall/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG - News), a leading industrial fire protection products and solutions provider in China announced its financial results for the quarter ended June 30, 2007. The Company will host a conference call to discuss these results after the market closes.

Q2 Highlights

-- Revenues increase 37.9 % compared to Q2 last year to a record $11.5
million
-- Company reports proforma net income of $3.9 million and EPS of $0.14
-- In June, Company signs total solutions contract with Anshan Iron &
Steel for $7.6 million
-- Approved to list on Nasdaq Capital Market

Revenue increased for the second consecutive quarter to a record $11.5 million, up 37.9 percent from $8.4 million for the second quarter 2006. This increase was a result of further penetration of the Company's customer base across various industries and improved sales execution. Total solutions accounted for 85.6 percent of revenue with product sales representing 13.3 percent and maintenance services comprising the balance of revenue. Gross profit for the quarter increased 31.9 percent to $6.3 million from $4.8 million for the comparable period last year with gross margins slightly lower than the same quarter a year ago at 54.6 percent in 2007. Gross margins decreased from last year as the Company utilized a higher percentage of third party products, which tend to carry lower margins.

"We are pleased to report another consecutive quarter of record revenues despite a challenging second quarter 2006 comparison as we continue to see strong demand from new and existing clients," commented Mr. Brian Lin, Chief Executive Officer of China Fire & Security Group, Inc. "During the second quarter we made further progress in product development and market expansion while positioning the Company for future growth. The successful win of total solution contract from Anshan Iron and Steel Group demonstrates China Fire's capacity to further penetrate the sector, as the China Fire Protection Bureau is increasingly becoming more stringent on compliance."

Operating expenses increased 128.8 percent to $2.8 million during the second quarter as the Company increased sales and marketing initiatives to further establish the Company's products in the market while also incurring higher public company expenses compared to the same quarter last year. Income from operations was $3.5 million, which was relatively unchanged from the second quarter last year. GAAP net income increased 16.8 percent to $4.2 million for the second quarter of 2007 with earnings per weighted average diluted share increasing to $0.16. Excluding a non-cash gain of $0.4 million related to Change in fair value of derivative instruments during the quarter, pro forma net income increased to $3.9 million with earnings per weighted average diluted share of $0.14.

"During the second quarter we significantly ramped up our sales and marketing efforts as we targeted new customers, introduced new products and sought industry verticals to penetrate," Mr. Lin continued. "We continue to believe that our core industrial market represents at least a $1 billion opportunity and we are confident given our industry leading product suite, value added proposition for manufacturers and increasing government regulations that we will capture a significant portion of the business in the future."

Six Month Financial Results

Revenue for the first six months of 2007 was $21.0 million, up 40.1 percent from $15.0 million in revenue for the first six months of 2006. Gross profit for the period increased 36.4 percent to $11.3 million. Income from operations increased 19.6 percent to $6.8 million as the Company benefited from increased revenue, which was offset by higher operating expenses. GAAP net income increased 43.9 percent to $8.4 million with earnings per weighted average diluted share increasing to $0.31. Excluding non-cash charges related to Change in fair value of derivative instruments and expenses, proforma net income increased 23.2 percent to $7.2 million or $0.26 per weighted average diluted share.

The Company continues to maintain a strong financial position. As of June 30, 2007, China Fire had $8.5 million in cash and cash equivalents, working capital of $28.9 million and no long-term debt. For the second quarter 2007, day sales outstanding or DSOs, were 127, down from DSOs of 145 in the first quarter 2007. Shareholders' equity stood at $35.8 million, up from $25.0 million at the end of 2006.

"We have been working diligently on improving our operational efficiencies and expect both further revenue growth and margin improvement to contribute to a record 2007. Given our strong results thus far through 2007, we are confident that we are going to deliver full year results above our stated "make good" comprehensive income target of $13.0 million and $0.46 in earnings per share associated with our October 2006 private placement. We expect this momentum to continue in 2008 as we look to maintain our number one industry position and report another record year," concluded Mr. Lin.

Teleconference Information

The conference call will take place at 4:15 p.m. EDT on Tuesday, August 14, 2007. Interested participants should call 1-866-328-4270 when calling within the United States or 1-480-629-9563 when calling internationally. There will be a playback available until 11:59 p.m. eastern time August 21, 2007. To listen to the playback, please call 1-800-406-7325 when calling within the United States or 1-303-590-3030 when calling internationally. Please use pass code 3769237 for the replay.

This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://viavid.net/dce.aspx?sid=0000435A or at ViaVid's website at http://www.viavid.net . The webcast can be accessed through September 14, 2007.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc., through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Sureland Industrial Fire Equipment (Beijing) Limited ("Sureland Equipment"), is engaged primarily in the design, development, manufacture and sale in China of a variety of fire safety products for the industrial fire safety market and the design and installation of industrial fire safety systems in which it uses its own fire safety products. It also provides maintenance services for customers of its industrial fire safety systems.

Headquartered in Beijing with over 30 sales and project offices throughout China, Sureland markets its industrial fire safety products and systems primarily to major companies in the iron and steel, power and petrochemical industries in China. It is developing and expanding its business in other industrial sectors including transportation, wine and tobacco, vessels, nuclear energy, and public space markets.

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" contained in China Fire & Security Groups' public filings with the SEC.

CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS UNIPRO FINANCIAL SERVICES, INC.)

CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006
(Unaudited)

Three months Six months
ended June 30, ended June 30,
2007 2006 2007 2006
REVENUES
System contracting
projects $9,887,878 $4,100,476 $17,164,386 $8,322,758
Products 1,538,049 4,138,369 3,639,805 6,507,601
Maintenance Services 121,258 132,888 242,456 195,724
Total revenues 11,547,185 8,371,733 21,046,647 15,026,083

COST OF REVENUES
System contracting
projects 4,379,902 2,092,985 8,024,570 4,748,617
Products 811,081 1,474,627 1,639,783 1,940,888
Maintenance Services 46,689 19,014 56,874 35,495

Total cost of
revenues 5,237,672 3,586,626 9,721,227 6,725,000

GROSS PROFIT 6,309,513 4,785,107 11,325,420 8,301,083

OPERATING EXPENSE
Selling and marketing 1,210,100 267,180 1,761,509 849,080
General and
administrative 1,174,309 590,685 2,185,353 1,092,414
Depreciation and
amortization 133,056 132,889 259,539 269,778
Research and
development 267,626 226,548 317,921 403,520
Total operating
expense 2,785,091 1,217,302 4,524,322 2,614,792

INCOME FROM OPERATIONS 3,524,422 3,567,805 6,801,098 5,686,291


OTHER INCOME
(EXPENSE)
Other income 323,702 128,091 327,998 225,484
Other expense (2,146) -- (6,417) --
Interest income 24,915 4,372 44,170 6,080
Interest expense -- (43,019) -- (43,019)
Change in fair value
of derivative
instruments 371,628 1,205,791
Total other income
(expense) 718,099 89,444 1,571,542 188,545

INCOME BEFORE PROVISION
FOR INCOME TAXES
AND MINORITY
INTEREST 4,242,521 3,657,249 8,372,640 5,874,836


PROVISION FOR INCOME
TAXES -- 43,144 -- 56,800

NET INCOME BEFORE
MINORITY INTEREST 4,242,521 3,614,105 8,372,640 5,818,036

MINORITY INTEREST -- (18,890) -- --

NET INCOME 4,242,521 3,632,995 8,372,640 5,818,036

OTHER COMPREHENSIVE
INCOME
Foreign currency
Translation
adjustment 514,775 32,993 810,334 120,677


COMPREHENSIVE
INCOME $4,757,296 $3,665,988 $9,182,974 $5,938,713

WEIGHTED AVERAGE
NUMBER OF SHARES ¨C
BASIC 26,461,678 24,000,000 26,461,678 24,000,000

WEIGHTED AVERAGE
NUMBER OF SHARES ¨C
DILUTED 27,164,207 24,000,000 27,085,807 24,000,000

EARNING PER SHARE ¨C
BASIC $0.16 $0.15 $0.32 $0.24
EARNING PER SHARE
- DILUTED $0.16 $0.15 $0.31 $0.24




CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
(FORMERLY KNOWN AS UNIPRO FINANCIAL SERVICES, INC.)

CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2007 AND DECEMBER 31, 2006

A S S E T S
June 30, December 31,
2007 2006
Unaudited
CURRENT ASSETS:
Cash $8,487,318 $9,426,091
Restricted cash 894,494 1,622,833
Accounts receivable, net of
allowance for doubtful
accounts of $1,496,398 and
$1,252,947 as of June 30,
2007 and December 31,
2006, respectively 14,377,790 12,878,665
Accounts receivable -
related party -- 333,056
Notes receivable 1,550,911 903,425
Other receivables 1,993,014 785,111
Other receivables - related
party -- 90,008
Inventories 4,741,890 4,190,830
Costs and estimated
earnings in excess of
billings 12,258,012 9,020,122
Employee advances 2,186,930 1,648,560
Prepayments and deferred
expenses 2,557,245 2,396,571
Total current
assets 49,047,604 43,295,272

PLANT AND EQUIPMENT, net 3,929,627 3,529,808

OTHER ASSETS:
Accounts receivable -
retentions 667,103 383,375
Deferred expenses - non
current -- 40,830
Advances on building
purchases 896,865 --
Investment in joint venture 149,910 501,288
Land use rights, net of
accumulated amortization 565,797 558,255
Technology rights, net of
accumulated amortization 598,599 --
Total other assets 2,878,274 1,483,748

Total
assets $55,855,505 $48,308,828


L I A B I L I T I E S A N D S H A R E H O L D E R S' E Q U I T Y

CURRENT LIABILITIES:
Accounts payable $5,553,119 $5,796,979
Accounts payable - related
party -- 320,754
Customer deposits 8,335,538 2,713,451
Billings in excess of costs
and estimated earnings 2,331,174 8,867,624
Other payables 826,569 388,434
Other payables - related
party -- 50,523
Accrued liabilities 2,898,232 1,891,628
Taxes payable 162,204 619,949
Total current
liabilities 20,106,836 20,649,342

DERIVATIVE INSTRUMENT LIABILITIES -- 2,680,811

COMMITMENTS AND CONTINGENCIES -- --

SHAREHOLDERS' EQUITY:
Common stock, $0.001 par
value, 65,000,000 shares
authorized,
26,461,678 shares
issued and
outstanding 26,462 26,462
Additional paid-in-capital 14,980,191 13,393,171
Statutory reserves 3,123,127 3,728,127
Retained earnings 15,743,033 6,765,393
Accumulated other
comprehensive income 1,875,856 1,065,522
Total
shareholders'
equity 35,748,669 24,978,675

Total
Liabilities and
shareholders'
equity $55,855,505 $48,308,828



For more information, please contact:

China Fire & Security Group, Inc.
Brian Lin
CEO
Tel: [phone]
Email: [e-mail]

[deathtotaxes]

Another mention on the Fool.

http://www.fool.com/investing/international/2007/07/25/get-the-next-centurys-best-gains.aspx

[deathtotaxes]

Thank you for your recent symbol request.

Based on your suggestion, we have added [CFSG] to our charting database:
http://stockcharts.com/h-sc/ui?s=cfsg


Thanks for using StockCharts.com,
StockCharts Support
[e-mail]
http://stockcharts.com


Point & Figure chart show $10.25 as a target price FWIW
http://stockcharts.com/def/servlet/SC.pnf?c=CFSG,P&listNum=

[deathtotaxes]

The fire safety products must comply with the newly released codes. The management of CFSG helped write those codes. They have the only Linear Heat Detectors that are up to code. That gives them an advantage over anyone trying to come into the business.

[MrPastorious]

what are the barriers to entry in their industry? BTW, That is what I really like about GUFR and the bromine license situation in China.

[deathtotaxes]

Nice financials, NASDAQ & like GUFR they are the market leaders in China in their industries.

[MrPastorious]

not bad financials on this one

[deathtotaxes]

China Fire Announces Strategic Investment in a Chinese Fire Emergency Monitoring Company
Wednesday July 18, 8:30 am ET
Investment May Lead to Service Business and Provide Future Sales and Acquisition Opportunities

BEIJING, July 18 /Xinhua-PRNewswire-FirstCall/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG - News; ''China Fire'' or ''the Company''), a leading industrial fire protection products and solutions provider in China, today announced that the Company has made a strategic investment into Wan Sent (China) Technology Co., Ltd. (''Wan Sent''), an emerging Chinese fire emergency remote-monitoring system provider based in Beijing.

Founded in 2005, Wan Sent is an emerging services provider of fire emergency monitoring systems, deployed in residential, commercial and industrial buildings. Wan Sent's core product is an Internet-based monitoring system, which alerts the Fire Protection Bureau to dispatch related fire extinguishing teams to a customer site in case of a fire emergency. Consisting of integrated hardware and software systems, Wan Sent's solutions act as a supplementary service to customers to ensure a rapid and accurate response and protect customer's valuable assets in case of a fire emergency. As part of the agreement China Fire will invest $1 million in cash into Wan Sent for a minority interest.

''Currently, there are no fire emergency monitoring services in China. People need to physically call the Fire Protection Bureau if there is an emergency. Wan Sent's products represent the next generation of monitoring systems for buildings and serve as a valuable service to customers while providing a high return on investment,'' commented Brian Lin, Chief Executive Officer of China Fire & Security Group, Inc. ''Assuming only a modest penetration of Wan Sent's products in the market, the potential market of Wan Sent's services could be as high as several hundred million dollars per year in the future based on it's business model of charging clients an annual recurring service fee.''

Currently Wan Sent has approximately 100 employees and operates 10 offices throughout China while having approximately 100 unique customers. With this technology still in it's infancy within China, it is estimated that there are approximately 31 million individual buildings that would be applicable for the Wan Sent's service, creating a large addressable market opportunity.

''With China Fire committing to this first strategic investment, we have the opportunity to work closely with Wan Sent to help establish the market, while also potentially capturing a portion of the high margin sale for China Fire, as we add Wan Sent's products to our industry leading end-to-end fire protection solutions for customers,'' further commented Mr. Lin. ''Additionally, we are providing China Fire with a low risk and high reward opportunity to later acquire the invested company, if Wan Sent's services are rapidly adopted in the market place. We look forward to providing investors with an update on the progress of Want Sent's business, as both industry and government drivers are forcing clients to proactively address deficiencies in their current fire protection systems.''

China Fire & Security Group, Inc., through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited (''Sureland'') and Sureland Industrial Fire Equipment (Beijing) Limited (''Sureland Equipment''), is engaged primarily in the design, development, manufacture and sale in China of a variety of fire safety products for the industrial fire safety market and the design and installation of industrial fire safety systems in which it uses its own fire safety products. It also provides maintenance services for customers of its industrial fire safety systems.

Headquartered in Beijing with over 30 sales and project offices throughout China, Sureland markets its industrial fire safety products and systems primarily to major companies in the iron and steel, power and petrochemical industries in China. It is developing and expanding its business in other industrial sectors including transportation, wine and tobacco, vessels, nuclear energy, and public space markets.

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as ''believe,'' ''expect,'' ''may,'' ''will,'' ''should,'' ''project,'' ''plan,'' ''seek,'' ''intend,'' or ''anticipate'' or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other ''Risk Factors'' contained in China Fire & Security Groups' public filings with the SEC.

For more information, please contact:

Investors:
Matt Hayden
HC International
Tel: [phone]

China Fire & Security Group, Inc.:
Brian Lin
CEO, China Fire & Security Group, Inc.
Tel: [phone]

[deathtotaxes]

China Fire & Security Group, Inc. Approved for Listing on Nasdaq Capital Market

Thursday July 12, 8:30 am ET

BEIJING, July 12 /Xinhua-PRNewswire-FirstCall/ -- China Fire & Security Group, Inc. (OTC Bulletin Board: CFSG - News) "China Fire", a leading industrial fire protection products and solutions provider in China, today announced that its common shares have been approved for listing on the Nasdaq Capital Market ("Nasdaq"). The stock will begin trading on Nasdaq at the open on Monday, July 16, 2007, and will retain the ticker symbol CFSG.

ADVERTISEMENT
"We are very pleased that our Company has met the financial, liquidity and corporate governance requirements for listing on Nasdaq and we believe that this move will lead to increased visibility, liquidity and institutional sponsorship for the Company," commented Brian Lin, Chief Executive Officer of China Fire & Security Group, Inc.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc., through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Sureland Industrial Fire Equipment (Beijing) Limited ("Sureland Equipment"), is engaged primarily in the design, development, manufacture and sale in China of a variety of fire safety products for the industrial fire safety market and the design and installation of industrial fire safety systems in which it uses its own fire safety products. It also provides maintenance services for customers of its industrial fire safety systems.

Headquartered in Beijing with over 30 sales and project offices throughout China, Sureland markets its industrial fire safety products and systems primarily to major companies in the iron and steel, power and petrochemical industries in China. It is developing and expanding its business in other industrial sectors including transportation, wine and tobacco, vessels, nuclear energy, and public space markets.

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" contained in China Fire & Security Groups' public filings with the SEC.

For more information, please contact:
Investors:
Matt Hayden,
HC International
Tel: [phone]
China Fire & Security Group, Inc.:
Brian Lin, CEO
Tel: [phone]

[deathtotaxes]

Caught this answer just now on Seeking Alpha:

Linear Heat Detectors are used in many industrial environments, including Iron and Steel plants, Power plants, Petrochemical plants, highway tunnels, etc. In China, we are working with government to release fire codes for different industries to ensure appropriate amount of linear heat detectors are deployed in industrial plants for fire detection. Even though there is no legislation on non-compliance yet, plant owners are paying more and more attention to fire safety due to various potential liabilities.


The new feeling in China might be that heads will roll if a plant fire causes loss of life or economic ruin.

[chinaanalyst]

Interactive Q&A: Brian Lin, CEO of China Fire and Security Group, Inc. (CFSG.OB)

http://china.seekingalpha.com/article/40463

[BiotechValues]

China Fire & Security Group, Inc. Announces CEO Brian Lin to Participate in an Interactive Q&A Session

BEIJING, July 6, 2007 -- China Fire & Security Group, Inc. (OTC Bulletin Board: CFSG ) "China Fire", a leading industrial fire protection products and solutions provider in China, today announced that CEO Brian Lin will be doing an interview and Q&A session on the website www.seekingalpha.com. The interview can be accessed by all investors but in order to ask a question, investors must complete a free registration with the website. The Q&A process will begin on Monday July, 9 and last through Wednesday July 11. For further details regarding the interview please visit the seekingalpha website.


Mr. Lin is expected to discuss a range of topics including:


1. The Company’s focus on providing fire prevention solutions and an overview of its addressable marketplace.

2. Key Chinese government drivers in place which are driving demand for the Company’s services

3. Further details on the Company’s product suite from fire prevention to extinguishing.

4. Recent contracts and expansion possibilities which have created a large addressable market opportunity

5. The competitive landscape.

6. Plans to move from the bulletin board to a national exchange.



“We are looking forward to participating in this interview and answering questions from both existing shareholders and new investors,” commented Mr. Brian Lin, CEO of China Fire.


If investors should have any further questions please feel free to contact Chris Donnelly of HC International at 858 704 5059



Please access the attached hyperlink for an important electronic communications disclaimer:

http://www.haydenir.com/email_disclaimer.html

[BiotechValues]

Very nice. Thanks for posting.

Gross margins are about 50% according to the report. Sweet.

[deathtotaxes]

http://www.studio531.com/PressReleases/20070628_CFSG.pdf for full report, below is first part only.

Equity Research
Chinese Consumer,
Media and Technology
Published by Susquehanna Financial Group, LLLP, Member NASD


Thursday, June 28, 2007
China Fire & Security Group, Inc. (CFSG: $6.45, Positive)
Initiating Coverage with a Positive Rating
Adele L. Mao - 212-514-4772 - [e-mail]
Jie Liu - 212-514-4895 - [e-mail]


We are initiating coverage on China Fire & Security with a Positive rating. CFSG is a leading supplier of fire safety products in China's industrial fire safety market, with core competency in the iron and steel industry. As China continues to enforce its fire safety regulations in key industrial segments, we estimate that CFSG is poised to achieve annual top-line growth of 40%+, with sustainable profit margins in the next couple of years. In our view, CFSG presents a unique opportunity for investors looking to participate in an emerging, high-growth niche in China's industrialization.
HIGHLIGHTS
· Growing demand for fire safety products, driven by the implementation of fire safety standards in China. Based on recent statistics, the overall fire safety market in China is approximately $4 billion, and is expected to grow ~15% annually in the next five years. While opportunities abound, competition in China's fire safety market has been fierce. We estimate there are 16,000+ companies involved in various capacities as manufacturers, distributors, and project contractors. To a large extent, the growth of China's fire safety industry depends on the enforcement of China's fire safety regulations. With increasing public awareness for fire safety, we are seeing demand shifting from "mandatory" to "voluntary" for high-quality products. Positive Factor

· Niche industrial focus circumvents over-heated competition in residential and commercial segments. The industrial fire safety segment, with a current market size of approximately $1 billion, requires technical expertise and has higher barriers of entry. It is estimated that ~80% of China's industrial plants are not compliant with government fire safety requirements. CFSG is a leader in the industrial segment, enjoying an attractive gross margin of ~50%, compared to the industry average at less than 20%. Positive Factor

· Proprietary technology, cost-effective solutions, and more importantly, deep roots in a heavily relationship-driven industry. CFSG has a strong 30-member R&D team, and the company is expected to grow its R&D personnel by 50% in the next two years. Furthermore, senior executives have been actively involved with the establishment of fire safety codes and industry/product standards in and outside of China. CFSG's close involvement in regulation and standard-setting organizations provides the company with opportunities to steer policies/standards to its advantage, and establish a solid reputation among existing and potential customers. With CFSG's involvement, China's linear heat detector (LHD) standard is more stringent than the Underwriters Laboratories (UL) standard widely followed by international players, and this prohibits international LHD suppliers from competing for new projects due to non-compliance. Positive Factor

· We believe near-term positive catalysts should push valuation higher. 1) New contracts from existing key customers in the iron and steel industry, as major factories continue to modernize their facilities; 2) penetration into other industrial segments, i.e., transportation and tunnels, as well public venues, such as stadiums and theatres; 3) improving liquidity with near-term listing transition to the NASDAQ; and 4) strategic alliance with international OEMs, which presents immediate opportunities in China, and long-term opportunities in the export market. Positive Factor

· Substantial accounts receivables on the balance sheet, but so far, so good. CFSG's key customers are primarily state-owned enterprises, which often times delay payments, creating substantial accounts receivable for CFSG. For 2006, accounts receivable net of allowances accounted for 40%+ of total revenue. Typically, CFSG charges the customers 10-30% of the contract amount up-front, and collects the balance as the project progresses. While management is proactively seeking to reduce accounts receivable risks, we do not believe there is much room for improvement on the collection front, as CFSG has no choice but to compromise on payment delays in order to maintain long-term customer relationships. That said, write-offs in the industrial segment appear more manageable overall than in the residential/commercial segment, and in the case of CFSG, write-offs have been minimal in the past. Neutral Factor

· Valuation. Despite the 95%+ appreciation since CFSG's reverse merger in October 2006, we expect CFSG shares continue to appreciate over time, as the company delivers earnings growth and gains visibility among investors. At 13.8x our 2007 EPS estimate of $0.47 (+65% Y/Y), and 10.5x our 2008 EPS estimate of $0.62 (+32% Y/Y), CFSG shares are trading at a significant discount relative to its near-term earnings growth potential as well as market opportunities in the long run. We believe further upside in the shares will be driven by P/E multiple expansion, as well as upside to current estimates. In our view, management's "make-good" target of $13 million in net income and EPS of $0.46 for the year 2007 appear conservative, and we expect the company to beat the target with additional contract wins from existing and new customers, as well as with strategic alliances with international OEMs.

CONTRA CASE
Risks to our investment thesis include: 1) weaker than expected demand of fire safety products due to a lack of enforcement of new and existing fire safety codes; 2) China's economy slows down and causes domestic power, petrochemical, and iron and steel industries to contract; 3) new or alternative technologies introduced by competitors that are superior to CFSG's solutions; 4) penetration of new market segments takes longer than expected to ramp up; and 5) departure of any senior executives.
Click here to Read the Complete Report

Susquehanna International Group, LLP (SIG) is comprised of a number of trading and investment related entities under common control, including Susquehanna Financial Group, LLLP (SFG). An affiliate, Susquehanna Capital Group, was acting as a market maker in the subject security on the issue date of this report. SIG, its affiliates and/or its principals may have long or short positions in securities or related issues mentioned here. SIG may make a market in securities mentioned here and in its capacity as specialist and/or market maker may execute orders on a principal basis in the subject securities. Information presented is from sources believed to be reliable, but is not guaranteed to be accurate or complete. The research analyst primarily responsible for this report attests that the views expressed accurately reflect his or her personal views and that no part of his or her compensation was, is, or will be related to any specific views in any research report. This information is meant for institutional accredited investors, anyone not meeting that definition should contact William Mann toll free at 866-744-8160 for additional information.
SFG does and seeks to do both investment banking and non-investment banking business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. SFG intends to represent issuers, including one or more of the subject companies, as a broker in connection with corporate repurchase plans. Research analysts may receive compensation for their efforts involving corporate repurchases.

SFG employs the following rating system:
Positive: The data points compiled and the analysis conducted by the research analyst sum up or "net" out to an overall positive view. This is not a net positive for the company, but a net positive for the stock, meaning the information and analysis contained in the report are not reflected in the current stock price and could reasonably be expected to have a positive or appreciating effect (when widely available to the public) on the current stock price.
Neutral: The data points compiled and the analysis conducted by the research analyst sum up or "net" out to an overall neutral view. This is not a net neutral for the company, but a net neutral for the stock, meaning the information and analysis contained in the report are either NOT reflected in the current stock price and could reasonably be expected to have no effect (when widely available to the public) on the current stock price, OR the information contained in the note is already reflected in the current stock price.
Negative: The data points compiled and the analysis conducted by the research analyst sum up or "net" out to an overall negative view. This is not a net negative for the company, but a net negative for the stock, meaning the information and analysis contained in the report are NOT reflected in the current stock price and could reasonably be expected to have a negative or depreciating effect (when widely available to the public) on the current stock price.

Prior to May 2, 2005 SFG employed a rating system as follows:
Net Positive which carried the same definition as Positive above
Net Neutral which carried the same definition as Neutral above
Net Negative which carried the same definition as Negative above

SFG Fundamental Research: 170 companies under coverage (as of 3-31-2007)

Covered companies in each rating category

Positive (Buy): 49% (83 securities)
Neutral (Hold): 49% (84 securities)
Negative (Sell): 2% (3 securities)

Investment banking clients in each rating category

Positive (Buy): 1% (1 security)
Neutral (Hold): 1% (1 security)
Negative (Sell): 0% (0 securities)

From January, 2006 to June, 2006 SFG used the following ranking system in addition to the above:
SIG Q SCORE(tm) is a hybrid quantitative modeling tool designed to cover a broad universe of stocks. It compares multi-factor analysis of historical, company reported financials and other quantitative trading and performance data to derive a ranking designed to provide a relative performance tool. The end result is a composite rank from 1 to 5 with 5 indicating the highest predicted return. The ranking is meant to be regarded as an indicator of relative performance. Based on these rankings, we would expect stocks ranked 5 to outperform those ranked 4 or lower over the next 12 months, those ranked 4 to outperform those ranked 3 or lower, and so on. The entire universe of analyzed stocks (of which SFG Small-Cap coverage is a subset) is divided into fifths, such that the percentage of stocks in each category will remain largely consistent over time. Changes in quantitative and other factors that occur after the ranking are not reflected until the model is run again next quarter.

Beginning July, 2006 SFG changed the ranking system to include only three SIG Q SCORE rankings from 1 to 3, with a SIG Q SCORE of 1 representing the highest ranking. The methodology of computing the rankings remains as above; however, the result is now divided into thirds rather than fifths and the order inverts with 1 now being the highest ranking.

SFG Small-Cap Research: 30 companies under coverage (as of 3-31-2007)

Covered companies in each rating category

SIG Q SCORE 1 (Buy): 27% (8 securities)
SIG Q SCORE 2 (Hold): 46% (14 securities)
SIG Q SCORE 3 (Sell): 27% (8 securities)

Investment banking clients in each rating category

SIG Q SCORE 1 (Buy): 0% (0 securities)
SIG Q SCORE 2 (Hold): 0% (0 securities)
SIG Q SCORE 3 (Sell): 0% (0 securities)

The qualifier reference to the term "Factor" (i.e., positive, neutral, negative) pertains only to the factor(s) that is the subject of the reference and is not meant to be an overall assessment or analysis of the company or the valuation of any of the company's securities. This release only provides selective information that may affect the company and should not be construed as a recommendation to purchase, sell or hold any security or to engage in any particular trading strategy. Investors should use the information contained herein in conjunction with other information they may have about the company to formulate their own investment and/or trading decisions and strategies.

[BiotechValues]

Good point about them writing the codes for the government. It does position them well for growth.

[deathtotaxes]

Coverage initiated on CFSG by Susquehanna Financial. Now along with Roth Capital we have 2 firms reporting.

[deathtotaxes]

Shamelessly stole this post from Investor Village...

"I agree CFSG looks ripe for a pullback here after the last 2 weeks. Especially if the markets continue to go south this week as they very well might.

That said, I believe CFSG will ultimately trade at a PE that includes a premium compared to many of the other Chinese for the following reasons:
Zero debt, and brand new facilities with room to expand.
$10M cash to shop with.
"Over 50%" income growth stated by the company and Motley Fool (who are not known for hyping stocks or coming up with wild income projections) Now, how much over 50% growth remains to be seen. I would not be surprised to see 75% or greater income growth going forward, given their apparent positioning in their market.
No share dilution recently or planned (many of these micros have been hit hard by dilution. CFSG has made it a point in their last conference call that they will not dilute shares, and that they will grow organically with income earned.)
Nasdaq listing pending. Only a select few of the Chinese micros will be trading on the Nasdaq in a few weeks/months. CFSG is one of them.
CFSG wrote the new fire codes for the Chinese government. These codes include their high margin, patented LHD (Linear Heat Detectors).
Now, 1-6 above are cold hard facts that can not be disputed.


The following are my theories based on the above facts:
CFSG, having written the fire codes for the government, is in the enviable position of being able to consolidate a nacent and fragmented market with no clear player. They will now consolidate the > $1 Billion industrial fire safety sector and marginalize their competitors due to the government codes. This is what absolutely sets CFSG apart from the many other low PE China plays out there.
Announcements of additional large contract wins will be forthcoming, and will show that CFSG is consolidating the fragmented industry and emerging as the leader.
Taken together, a PE of 30 would not be unreasonable once trading on the Nasdaq. With 2007 "make good estimate" of .46/share , that's a SP of $14/share. Heck, JADE trades at a PE of 45, has slower growth and tiny margins compared to than CFSG.
Again, most of these Chinese micros can't support a PE of 30. They either have planned or current share dilution...or debt...or no hope of a Nasdaq listing anytime soon...or too much competition driving margins down, etc.

In conclusion, I agree that we may see a pullback short term that will set up a good buying opportunity for those who missed the first CFSG run. However, I think CFSG has several compelling factual reasons for why it should trade at a higher multiple than most its China OTC.BB peers."

[BiotechValues]

Video of finely misted water putting out fire at CFSG in Beijing. Very cool, from Motley Fool.

Video from Motley Fool's Global Gains team demonstrating the CFSG misting system.

The Motley Fool gang are definitely not video production pros (picture is tilted on side), but you get to see how cool the CFSG system is.

The ultra-fine mist starves the fire of oxygen needed to burn, but doesn't soak/permanently harmwhatever you're trying to protect.

Motley Fool calls it " a huge advantage over chemical solutions -- equipment that's been misted can resume operations in a day; equipment that's been contaminated can need a month or more to cool off. And that time on the bench can cost industrial companies (the type China Fire targets) serious money."

http://video.google.com/videoplay?docid=-4822866488464358048&q=motley+fool&total=44&star...

[BiotechValues]

Motley Fool likes CFSG too.

This is from their visit there a week or so ago.

The 10-Foot Tall Fireball
Are the stock markets really that insane in China?

That was one of the questions we hoped to answer on this trip around the world. The short answer: Yes. Folks are pulling money from every conceivable place, borrowing when they can, to flat out plow everything into equities.

And why not? The Chinese market is up some 150% over the trailing 12-month period.

Bear in the China shop!

While fundamental investors remain wary, such is not the case with many of these first-time Chinese investors. They aren't buying based on cash flows, earnings, or anything of the sort.

They're buying in droves because Uncle Hu says to. Or because the company's registration number, as The Wall Street Journal reported recently, contains lots of lucky number eights.

Woe betide the company whose shares close at RMB4.44, since 4 (su) is similar to the word for death.

Strategies these are not

In other words, the average Chinese punter is buying on anything. Or nothing. Same difference.

But this "buy on the 8, sell on the 4" mentality is not so much different from that of U.S. investors who bought dot-com companies en masse on the basis of things like "eyeballs." And something else is happening that bears an eerie similarity to the U.S. markets in the late 1990s: Steadily growing companies that generate free cash flow are being left in the dust.

In an overheated market, these are precisely the companies we want to discover.

Enter a 10-foot tall fireball

When we landed in Beijing, a young, smart entrepreneur named Brian Lin picked us up from the airport and whisked us away to his company's facilities a mere five minutes away (with a detour for an unbelievable meal, which may or may not have included duck tongue).

Neither Mr. Lin nor his company is flashy. Rather, he heads up a small firm with a wide market opportunity that's poised to dominate its niche. It expects to grow earnings per share over 50% in the forthcoming year and boasts a rock solid balance sheet.

Even better, when it comes time to write the rules that govern the industry, the Chinese government turns to Mr. Lin and his team of experts, including Research Director Liu Min, Ph.D.

All that said, what truly sets China Fire & Security Group (OTC BB: CFSG.OB) apart from its Chinese peers is that it trades for 15 times earnings. If you wanted to buy the rest of the Chinese market, you'd have to pay approximately 40 times.

Of course, China Fire still comes with some clear risks. It's small; it trades over-the-counter in low volumes; and with just 3% of market share, it can hardly be called a dominant player.

True to its name, China Fire detects and destroys industrial fires. Even better, its system can do so with finely misted water. That's a huge advantage over chemical solutions -- equipment that's been misted can resume operations in a day; equipment that's been contaminated can need a month or more to cool off.

And that time on the bench can cost industrial companies (the type China Fire targets)
serious money.

You don't need us to tell you that Chinese industry is growing rapidly. But that's not the only opportunity for China Fire. It's also scoring business retrofitting industrial plants that heretofore ignored the need for fire detectors and sprinklers in their facilities. The government has ruled that they can't do so forever -- and any plant manager that fails to bring his plant up to code will be held personally accountable.

With a Nasdaq listing on the horizon and a new focus in China on doing things the right way, China Fire sits in a very interesting sweet spot. Also, because it's small and trades solely in the United States, it has been largely ignored by the recent Chinese insanity. We'd be lying if we said that combination didn't
intrigue us.


Bill Mann
Advisor, Global Gains
Tim Hanson,
Writer/Analyst

[deathtotaxes]

Favorite stock of mine. Growth of revenues and earnings have been moving upward at a fast pace. Currently in the uplisting phase of NASDAQ and should be off the OTCBB shortly.

Company has made a "make good" revenue estimate of $.46 per share for the current fiscal year and combined with a NASDAQ listing should help get the stock price at or near the $10.00 mark, A float of only 3.7 million shares with many of those shares not on the market at current prices or volumes.