That CITP is NBS's Chinese counterparty is clearly stated on page 10 of the FY09 Full Year Statutory Accounts.
If you are going to submit my stuff to ASIC, you should keep in mind that the entire China contract seems to exist in an information black hole (there is no mention of its existence on the AQSIQ website - both English and Chinese versions, nor in the Chinese news media). For this reason, my comments on the China contract and CITP are based mainly on TPID's SEC releases and should be understood to be highly speculative. Furthermore, I want to make it clear that even if CITP is not the entity we were led to believe it was, this fact alone does not rule out the possibility that NBS will eventually receive its China cash.
You might also find useful the following extract from a Lodge note put out on the day the preliminary results were released which confirms the $80mill forecast I cited in my note. IMO, this note indicates that Lodge were being fed inaccurate information by NBS management at that time.
The analyst writes:
"Additional cash has been received since 30 June.
Government debtors are considered to be low risk and the company sees
very little risk to the collection of receivables
The implementation of both the Malaysian Immigration contract and the
China Gas Tank project has gone very well
Underlying EBITDA margins (excluding options expense and D&A) are >80%
There remains a strong pipeline of demand for the NexCode technology
The Vietnamdeal is out to tender and NBS is in a strong position to win in FY10
We will retain our FY10 NPAT forecast of ~$80m
In summary, we expect operating cashflow to improve significantly in
1HY10 and the pipeline of demand remains solid
NBS is trading on an FY10 PE of 2.4x, therefore we retain our BUY recommendation."
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