Univision Engineering, the security company focused on China and Taiwan, shot up on Thursday morning after reporting increased revenues in the half year to the end of September.

Total revenue for the period hit HK$47M (£3.9m), up 24% on the equivalent period of last year. The profit figure was not as rosy, however, remaining flat at HK$3.3 (£275,563).

Univision makes 90% of its money installing CCTV security cameras in Hong Kong and mainland China.

It's clear from the trading update that the firm is also keen to expand its "electrical and mechanical" division, which installs lifts, escalators and fire control systems.

In terms of finding the cash to do so, however, part of the problem for Univision is that one of its main assets is a 51% stake in a shopping mall in the city of Zhongshan; unfortunately it cannot sell this stake for cash without attracting a 60% capital gains tax charge.

Instead, it appears to have taken a payment of HK$6.16m from the Guangzhou Jun Heng Electrical & Mechanical Equipment Company "which may be classified as a down payment against (a) purchase".

Univision also admits that the reason the revenue figure has grown so dramatically is because of the inclusion of turnover from the formerly deconsolidated subsidiary, Leader Smart Engineering, its mainland China operation.

Over the past five years Univision shares are down 85%. Over the year to date the stock is up 35%.

BS

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