China Fire & Security Group (CFSG)

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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.