ORLANDO, Fla., Sept. 9, 2008 (GLOBE NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc., has issued a second quarter 2008 research update for China Security & Surveillance Technology, Inc. (NYSE:CSR), a company engaged in the manufacture, distribution, installation, and maintenance of security and surveillance systems in the People's Republic of China (PRC).
Ajay Mohan, MFM, RedChip Research Analyst, reported:
"CSR demonstrated solid overall growth in 2Q08 as both the top and bottom lines soared sequentially and year-over-year. CSR exceeded our estimates fueled by both organic and inorganic growth strategies. Apart from the Company's manufacturing and distribution segment, which already carried high margins, CSR also achieved increased economies of scale for its installation segment, resulting in higher overall margins."
"CSR continues to win contracts in China, adding to its existing backlog. The market demand in China is likely to surge further as recent bombing incidents and earthquakes have stressed the need for more security and surveillance devices. Soaring market demand for security and surveillance appliances in China, deeper market penetration of CSR, and various acquisitions were the major factors contributing to CSR's revenue growth story," Mohan continued.
"CSR's continued revenue growth, proposed expansion into new geographical territories, and strong balance sheet will be the key positive catalysts for its valuation going forward. We maintain our 'Buy' recommendation on CSR as an opportunity stock appropriate for investors with a fair risk-return appetite," he concluded.
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Disclosure
Neither RedChip Companies nor the analyst has received any compensation from China Security & Surveillance Technology, Inc. or any other party for the writing and preparation of this equity research report. The analyst(s) contributing to this report do not hold any shares of the subject securities. This report is based on data obtained from sources we believe to be reliable but is not guaranteed as to accuracy and does not purport to be complete. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures, or other derivatives related to such securities.