Chengdu Top Sci-Tech, which listed on the Growth Enterprise Market in March, is a software developer that supplies computer applications, such as software for housing, funding and tax information management, to government agencies.
According to a report from Core Pacific-Yamaichi, the company reported a 417 per cent growth in revenue in the first quarter compared with the same period last year and returned to the black. Award-winning programs were continuing to post strong sales while new products were starting to contribute to the company's bottom line, the report said.
The investment house anticipated an acceleration of e-process introduction within the government and a continuing improvement in China's technological standards, both of which would benefit Top Sci-Tech.
Saying the counter had appreciated substantially since listing, Core Pacific placed a 'buy on weakness' recommendation on the stock and issued a price target of HK$2.80.
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