China Security and Surveillence: Growing 50% Y/Y, Trading at 17x Earnings

I bought 200 shares of China Security and Surveillence (CSCT.OB) today to start a position in the company. They design, manufacture and install video security systems in China. They are the largest player in a highly fragmented business.

The Chinese government has issued several regulations requiring security at many government and private facilities that are frequented by a large number of people annually. Estimates that the market for video surveillence in the Chinese market will total about $25 billion per year.

CSCT is acquiring smaller firms and creating a end-to-end solution for video surveillance in China. They are trading at about 17x this years earnings estimate of $1.05 per share and about 12x next years $1.45 estimate. Yet they are growing about 50% per year.

I will provide a full investment overview on this company within the next few days.

Disclosure: Author is long CSCT.OB

CSCT.OB 1-yr chart: