Longtop Financial Tech.

Company Description

Longtop is a leading software development and solutions provider targeting the financial services industry in China. Longtop develops and delivers a comprehensive range of software applications and solutions with a focus on meeting the rapidly growing IT needs of the financial services institutions in China.

Surging Revenue

On May 27 the Hong Kong-based company announced fourth-quarter results for fiscal 2009 that included just under $26 million, a 60% increase over the same quarter last year. Full-year revenue was up a proportionate amount to $106 million.

Net income for the quarter was 77% higher than last year's fourth quarter, coming in at $11 million. This came out to 18 cents per share, topping forecasts by 3 cents and giving the company its third surprise in the past 4 quarters.

Bullish Statement

In the same press release CEO Weizhou Lian, said "We look back at a great year in which we enjoyed significant business expansion despite a challenging economic environment and capitalized on the market opportunity for IT development in China's financial services sector to extend our software and solutions and further diversify our customer base."

Higher Estimates

Following the year-end results all 4 analysts providing estimates for 2010 raise their forecasts. The consensus is now $1.11, up from $1.01, which is a 27% year-over-year growth rate.

Estimates for fiscal 2011 are now averaging $1.33, up from $1.18 since the report. If met this would be a 20% earnings growth rate.

The Chart

Shares may face a bit of resistence at the current level, but if they can break though there is plenty of room to run. Take a look below.

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