China Energy Savings Technology (CESV)

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Press Release Source: China Energy Savings Technology, Inc.


Dutton Associates Reiterates Strong Speculative Buy Rating: China Energy Savings: FY 2005 Revenues and Earnings Blow Through Our Estimates; Stock Up On Heavy Volume
Wednesday January 4, 9:00 am ET


EL DORADO HILLS, Calif., Jan. 4 /Xinhua-PRNewswire/ -- Dutton Associates issued a research note on China Energy Savings (Nasdaq: CESV - News) on December 22, 2005: The year-ended 9/30/05 results were detailed in their just released SEC Form 10-K. For the year ended 9/05, revenues increased 14% to $48.4 and net income for the year, increased 295% to $22.4 million while EPS were $1.04. The increased revenue and earnings for the fourth quarter and year-ended 9/30/05 are positive for China Energy. However, the Company wish to point out that the revenue increase of 14% to $48.4 million was due to the increase in the sale of profit-sharing energy-savings contracts that was $23.0 million in the year ended 9/30/05, compared with approximately $10.0 million in the year ended 9/30/04. Other aspects of the release have also been reviewed. At this time the Company reiterates its Strong Speculative Buy Rating and price target of $13.25. The Company is in the process of preparing an Update Research Report that will review our rating and income model.