Case Study: China TransInfo Technology Corp.

Room 717, e-wing Centre No.113 Zhichunlu
Haidian District
Beijing, 100086
China
Phone: +86 -10-8267 129

Company Profile

Company : China TransInfo Technology Corp.
Industry : IT Services & Consulting
Headquarters : Haidian District, Beijing
Ticker Symbol : CTFO
Exchange : NASDAQ
The Challenge:

China TransInfo Technology Corporation is a leading provider of public transportation information systems technology and comprehensive solutions in China. The Company began its relationship with CCG Investor Relations in the second half of 2007. At the time, China TransInfo was rapidly growing yet largely unknown outside of China, with
limited trading volume on the OTC Bulletin Board and infrequent communications with the investment community. The Company lacked an independent board of directors and a bilingual chief financial officer. Under the guidance of CCG Investor Relations, China TransInfo hired Troy Mao, as chief financial officer. Mr. Mao speaks fluent English and possesses significant public accounting experience at Deloitte & Touche in the United States and China. Further, the Company created an independent board of directors, including appointing Jay Trien as chair of its audit committee. Mr. Trien is a senior partner at Trien Rosenberg Rosenberg Weinberg Ciullo & Fazzari, LLP, a certified public accounting and business consulting fi rm. While these initiatives enabled the Company to upgrade it stock listing to the NASDAQ Capital Market in August 2008, almost immediately thereafter the crises in the global financial markets occurred, reducing investor confidence in Chinese equities and pushing China TransInfo's shares to a low of $2.20 in March 2009.

However, as a leading technology and solution provider in China’s transportation information sector, China TransInfo’s business has been largely isolated from the global recession due to the booming development of national infrastructure network and the overall economic growth in China. The Company has introduced many new software applications and solutions to solidify its market leadership. In 2008, revenues grew to $29.4 million from $11.9 in 2007 and net income expanded to $11.1 million from $4.4 million.

Given this context, CCG Investor Relations reinvigorated its investor relations strategy for China TransInfo to more clearly and frequently communicate the Company’s competitive advantages, market opportunities, and identify high-affinity retail and institutional investors.
The CCG Strategy & Implementation:

CCG Investor Relations updated China TransInfo’s PowerPoint presentation and corporate profile with new designs that clearly define and explain the Company’s investment highlights and business. Concurrently, CCG teamed with management to signifi cantly increase China TransInfo’s news flow and visibility with investors by issuing frequent press releases to highlight government contracts, product launches, trade show appearances, and industry awards, while holding quarterly earnings conference calls.

CCG Investor Relations secured invitations for the Company to present at a series of investment conferences beginning in late 2008 to enhance China TransInfo’s visibility with U.S. institutional investors. In conjunction with these investment conferences, CCG coordinated comprehensive non-deal road shows to facilitate management meetings with investors. Through these meetings, China TransInfo visited 20 cities in the U.S. with a variety of institutional investors, analysts, securities brokers, and fi nancial reporters. Further, in September 2009, CCG organized an investor day at the Company’s group data center to demonstrate the company’s prevailing business model.

The Measurable Results:
  • Increased share price from $2.20 in March 2009 to $12.00 in October 2009
  • Average daily trading volume (3-months) increased from approximately 5,000 shares in March 2009 to 240,000
    shares in October 2009
  • New institutional shareholders include: Essex Investment Management Company; M&I Investment Management; Sterling Johnston Capital Management; State Street Global Advisors; TIAA-CREF; BNY Mellon Asset Management; Deutsche Asset Management;
  • Sell-side equity research coverage initiated by Roth Capital Partners and Avondale Partners
  • Upgraded to NASDAQ Global Market from NASDAQ Capital Market
  • Joined Russell 3000 Index in June 2009
  • Presented at several investment and industry conferences, including the 2009 Las Vegas Money Show, 2009 ROTH China Conference, 2009 Rodman & Renshaw Annual Global Investment Conference, Susquehanna Financial Group Third Annual Beijing Management Summit, ROTH 21st Annual OC Growth Stock Conference.

Analyst Comment

"We expect CTFO’s ITS solutions for highways and urban traffic management will be the key driver of the company’s growth in the coming years given the increasing demand for effective and efficient urban transportation network in most large cities in China."

- Kun Tao, Senior Research Analyst, Roth Capital Partners, October 9, 2009
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