Stock Name: LeaderEnv
Company Name: LEADER ENVIRONMENTAL TECH LTD
DMG & Partners Research in a July 27 research report says: "LET posted a strong set of 2Q11 results with RMB31.3 million in revenue (+69.8% y-o-y) and RMB6.8 million in net earnings (+55.9% y-o-y). Desulphurisation Engineering, Procurement and Construction (EPC) business continues to power growth, making up 85.5% of the group's 1H11 sales.
"The bulk of its earnings (>80%) come in the second half. EPC order book currently stands at RMB100 million, and we expect the group to secure another RMB250 million worth of EPC contracts by the end of August. Target price of 47 cents (previously 53 cents), based on 8.9x P/E (-1 SD industry P/E).
"The next key rerating catalysts of the stock are likely to be the green light to commence the Operate, Own and Transfer (OOT) business as well as its maiden contract breaking into the denitrification industry. MAINTAIN BUY."
Company Name: LEADER ENVIRONMENTAL TECH LTD
| Research House: DMG | Price Call: BUY | Target Price: 0.47 |
DMG & Partners Research in a July 27 research report says: "LET posted a strong set of 2Q11 results with RMB31.3 million in revenue (+69.8% y-o-y) and RMB6.8 million in net earnings (+55.9% y-o-y). Desulphurisation Engineering, Procurement and Construction (EPC) business continues to power growth, making up 85.5% of the group's 1H11 sales.
"The bulk of its earnings (>80%) come in the second half. EPC order book currently stands at RMB100 million, and we expect the group to secure another RMB250 million worth of EPC contracts by the end of August. Target price of 47 cents (previously 53 cents), based on 8.9x P/E (-1 SD industry P/E).
"The next key rerating catalysts of the stock are likely to be the green light to commence the Operate, Own and Transfer (OOT) business as well as its maiden contract breaking into the denitrification industry. MAINTAIN BUY."
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