Yucheng Technologies (YCHTF.OB)

Potential long term stock - Yucheng Technologies. YCHTF.OB (has warrants YCHWF.OB, which I like more).

Lots of info on it can be found here:

http://www.secinfo.com/dVut2.vbdf.htm

Basically, it's a new Chinese entity combined from a couple of companies purchased by China Unistone and renamed to Yucheng Technologies.

Here is a little on the deal:
China Unistone was organized to effect a business combination with an operating business that is based in China and that has significant growth potential. After the consummation of the stock purchase and redomestication merger, the operating companies of Yucheng will be Sihitech, and its subsidiaries, and e-Channels, all of which are located in China. Together these companies will provide IT services and system integration, web banking, and electronic multi-channel software and solutions to the Chinese banking industry. These companies, founded in the late 1990's have, collectively, demonstrated significant growth since commencing operations. China Unistone believes that the operating companies have the infrastructure in place to expand their business through cross selling, increase their customer base, and develop new services and products. As a result, China Unistone believes that a business combination with Sihitech and e-Channels will provide China Unistone stockholders with an opportunity to participate in a combined company with significant growth potential.

The combined company conists of Sihitech and e-Channels companies. Here is something for 2005:

In 2005, Sihitech and e-Channels had combined revenues of $25.2 million and total net income of $3.1 million. Post closing, Yucheng will have six operating subsidiaries which include Sihitech, e-Channels, Beijing Sihitech Software, Shanghai Sihitech, Shanghai Sihitech Software and Guangzhou Sihitech. There also will be two representative offices in Fuzhou and Xian. The combined company will have a combined employee staff of approximately 550 employees.


It's a profitable entity with significant growth and huge profits margins. (read SEC)
Their business plan is to hit these profits (not revenues):

2007 $ 8,500,000
2008 $ 11,900,000
2009 $ 16,700,000
2010 $ 23,300,000

They have 9.5m O/S with a lot less in float. And already 3.2m in profits. Plus, they just purchased another profitable company:
http://biz.yahoo.com/bw/070122/20070122006146.html?.v=1

BEIJING--(BUSINESS WIRE)--Yucheng Technologies Ltd. (YCHTF.OB, YCHWF.OB) today announced that its wholly owned subsidiary, Beijing Yucheng Technologies, signed a stock purchase agreement to acquire 100% ownership of Sunrisk Information Technology Ltd., a Beijing based risk management solution and service provider to Chinese banks. The consideration for the acquisition of the stock of Sunrisk Information Technology Ltd. was all cash deal which was partially paid at the time of acquisition, with the balance due on January 31, 2007 and March 31, 2008 based on the 2006 and 2007 results of operations. For 2006, Sunrisk's unaudited revenue was approximately US$ 1,536,000 (RMB 12 million) and unaudited net profit was US$ 960,000 (RMB 7.5 million) under US GAAP.

So, here is what Yucheng does:

Yucheng Technologies Ltd. is an IT solution and services provider to the Chinese banking industry. Headquartered in Beijing, China, Yucheng has established an extensive footprint to serve its banking clients nationwide with five subsidiaries and representative offices located in Shanghai, Guangzhou, Xian, Xiamen, and Chengdu. Yucheng currently has more than 600 employees across China. Yucheng provides a comprehensive suite of IT solutions and services to Chinese banks from system integration and IT consulting, to IT solutions, software platform, and outsourced operations. Yucheng counts 12 out of the 15 top commercial banks in China as its customers. Yucheng is especially strong in banking channel management IT solution and services, such as web banking and call centers. It has the largest market share in the web banking application market in China by user base according to a third party research report. Yucheng is ranked one of the top five IT solution providers, along with IBM and Digital China by IDC's "China Banking Industry IT Solution 2006-2010 Forecast and Analysis" report released in September 2006. Yucheng management team consists of industry veterans with extensive experience in serving the Chinese banking industry.

Finally, I believe they applied for Nasdaq....according to SEC documents...I like the warrants (strike price is $5, expiration - 11/2008