China Fire & Security Group (CFSG) is a leading provider of industrial fire protection systems in China. The company’s strong position in the industry has enabled it to win a high percentage of its bids, which is around 60-70% of bids in the iron and steel industry.
Though the company has been primarily serving the iron and steel industry, it is now looking at expanding into other industrial sectors such as transportation, marines, nuclear energy and petrochemical. China’s industrial fire protection market is expected to grow 11% annually until 2011.
As a leading player in the market, we believe CFSG is well-positioned to capitalize on the growth potential. We are upgrading our rating on the stock from Neutral to Outperform.Zacks Investment Research
