CSST expects firm demand for security gear to boost sales to US$370m

China Security & Surveillance Technology (CSST), a New York-listed manufacturer of security products, is hopeful that strong demand in the mainland market will boost its sales 54 per cent to as much as US$370 million this year.

'About 95 per cent of our revenue is contributed by mainland clients,' said Terence Yap, CSST's vice-chairman and chief financial officer. 'We will continue to focus on this market, having seen huge demand in the second- and third-tier cities, which number about 2,000.'

Mr Yap said first-tier cities such as Beijing and Shanghai are mature markets, so many suppliers have turned their attention to other cities.

CSST sells closed-circuit television (CCTV) systems - which include digital video recorders and camera systems - to protect establishments such as banks, hospitals, shopping malls, tunnels and schools. It also supplies access control systems and alarm products.

Sales grew 124 per cent to US$240 million for the year to December from a year earlier. Net profit rose 54 per cent to US$35.3 million from US$22.9 million.

The increase was partly due to a partnership contract with China Telecom to deliver security and surveillance solutions in Hainan province.

'The rapid development of the internet and proliferation of YouTube have increased people's awareness of our products,' said Mr Yap. 'They are looking at how a CCTV system can protect their assets.'