China All Access Shao Kwok KeungChina All Access (0633) recorded RMB153.2 million of profits attributable to shareholders in 2010, one year after it began trading on the local bourse in 2009, surging 56% year-on-year. The price-to-earnings ratio (P/E) was printing at merely 8 times. Shao Kwok Keung, Chief Executive Officer of China All Access Holdings Limited, said when he was interviewed by our website, that the group is offering three types of solutions for its customers, namely, “Solutions for Satellite Communications Applications”, “Solutions for Wireless Data Communications Applications” and “Solutions for Call Center Applications”. For the first two, the group is providing both system design and solutions services. For instance, the group would conduct research and create “technology tools” for people responsible for frontline law enforcement like traffic policemen, ordinary policemen, firemen, public security officers as well as those participating in civil defense. These people exchange data with back office platform through the “perception tools” and thus there is an interaction between the back office and the front-line users. The telecommunications systems installed in fire command vehicles and riots control vehicles represent the application of back office solutions.

The group perfects the whole application solution by integrating the services from before-sale phase, middle phase and all the way to after-sale phase. Shao emphasized “Solutions for Call Center Applications” is different from the other two – “Solutions for Satellite Communications Applications” and “Solutions for Wireless Data Communications Applications”. “Solutions for Call Center Applications” aims to provide solutions for on-duty staff in answering calls through displaying various sets of data, which would help answering different types of inquiries. Taking a car driver as an example, he or she can ask for the information of traffic conditions in different provinces and cities by calling to the call center, a move that is instrumental to shorten the travelling distance and is cost-efficient to the driver. Shao pointed out the group’s three solutions are definitely belong to high-technology level. First of all, an automobile installed with Satellite Communications Application Solution can travel at the high speed of 300/km per hour without any hindrance to the transmission and reception of satellite communications data.

According to a report compiled by CID Consulting, in Mainland China the annual sales income stemming from communications solutions reached RMB20 million. The production value of communications solutions in the field of public security, integrated urban management and emergency communications amount to RMB17.5 billion, RMB1.8 billion and RMB700 million respectively. At a policy level, the Chinese central government has injected RMB4.5 billion in 50 cities for the purpose of digitization of urban areas as early as during the tenth five-year period. According to the development strategies (for 2006 -2020) of communication systems in China, the Chinese government is going to improve the operation of communications network across the nation so as to cope with emergency situations. At the same time, the nation will equip itself so that it will have the capability to notify the public of any emergency situation and to manage and supervise relevant works when such a situation arises. China hopes to handle emergency situations in a manner that will create harmony within the community. Shao indicated the necessity of having real-time satellite communications solutions. For instance, if there is unrest in a certain city, the automobile installed with Satellite Communications Application Solution can travel in the surrounding area and transmit the video images to the control center, which may situate at a location thousands of kilometers away. As such, the Satellite Communications Application Solution can be considered a high-technology tool to foster the harmony within the borders of China.

Looking from the perspective of equity investor, Shao, as the group’s Chief Executive Officer, believed the group is operating a unique sector. China All Access (0633) is one of a kind in the local securities market. He stressed the sector was mainly driven by the government’s public expenditure, which is formulated to fit with national policy. The industry is not affected by whether there is domestic or external economic growth. The group may even purchase the advanced solutions techniques from the West at a bargain price in view of the European debt crisis and sluggish economy in the US, he said with a smile. The group can speed up the pace of application of these techniques in Mainland China as a result, he added. As to the category of stocks China All Access belongs to, the sayings of “security stocks” and “Stocks to maintain stability” are clearly not among his favorite choices for China All Access.
Then let’s back to the basics. China All Access should be a telecommunications technology stock with high-growth focusing on the Chinese market.