Cogo Group sees plenty of potential to expand revenues at its Smart Meter division in China

Cogo Group (NASDAQ: COGO) said it was excited by the potential business opportunities in China for its Smart Meter technology, which sits in its Industrial Business division.

Smart Meters are designed to improve the energy efficiency of a house or building by providing real time data on consumption, allowing individuals or companies to better manage their energy usage. In November 2008, China announced its intention to build a national Smart Grid system as part of a US$0.586 billion stimulus package.

Cogo noted recent estimates published by the China Electricity Council (“CEC”) which stated that total expenditures budgeted for the upgrade of China’s smart grid will hit 280 billion RMB ($40 billion) in 2011.

By comparison, Cogo Group generated US$3 million in Q3 2009 from its smart meter division, following the close of its acquisition of Mega Smart, offering plenty of room to significantly increase its market share.

"We are very excited about the opportunities available to Cogo over the next few years with China's new but rapidly growing Smart Meter upgrade," said Jeffrey Kang, CEO and Chairman of Cogo. "We expect that Smart Grid and Smart Meter are going to be key factors in the overall growth of our Industrial Business, which we expect to grow much faster than the overall Company in 2010 and beyond. Additionally, we believe that Cogo's overall revenue growth will accelerate materially in 2010, with margins expanding as the economic and consumer situation in China continue to improve," Mr. Kang remarked. http://www.proactiveinvestors.com/companies/news/3658/cogo-group-sees-plenty-of-potential-to-expand-revenues-at-its-smart-meter-division-in-china-3658.html