CLPS Inc’s (NASDAQ:CLPS) strategy of expanding their global presence continues attracting traders’ attention over the last couple of months. The Shanghai-based Chinese company has appointed a U.S.-based senior executive to lead the North America business unit; the move is aimed at expanding its North American presence in the tech and financial industry, with the ultimate goal of CLPS global expansion.
CLPS shares are making huge sideways moves in response to the expansion plan and Nasdaq listing. CLPS shares jumped to the all-time high of $17 mid-June, after beginning trading on Nasdaq a few days before. The stock has created sharp sideways moves since it hit its all-time high last month. Its shares are currently trading around $13, up 140% since the beginning of June.
CLPS Global Expansion Strategy Attracts Traders’ Attention
In a letter to shareholders, CLPS Inc announced its geographic expansion plan as well as its intention to capture the market share in related industries – such as insurance.
The appointment of its U.S.-based senior executive is a part of the CLPS global expansion plan. The company believes a U.S.-based person can help in expanding its market penetration in the rapidly growing U.S. financial and IT industries.
The company also plans to improve its presence in other global markets. “We expect to open additional training centers overseas to accommodate future demand for our services and solutions overseas,” CLPS Chairman and President Xiao Feng Yang wrote in the letter.
Business Plan for Sustainable Growth
Along with the international expansion, CLPS Inc’s business plan to generate sustainable growth focuses on five key points:
- Revenue Growth
- Continuous Research and Development
- Investment in the Training and Development of Human Capital
- Improved Operational Efficiency
- Strategic Alliances and Acquisitions
CLPS management believes working on these points would help them in capitalizing on the increasing demand for upgrade and maintenance of financial information technology.
The financial results for the latest quarter clearly indicate that its business strategies are aiding in the capitalization on demand from the financial information technology industry. Its revenues grew 63% year-over-year in the latest quarter, while its earnings per share rose 50% from the same period last year.
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