Stock Name: UtdEnvirotech
Company Name: UNITED ENVIROTECH LTD
Company Name: UNITED ENVIROTECH LTD
| Research House: OCBC | Price Call: BUY | Target Price: 0.52 |
UNITED ENVIROTECH 23 Apr 2012 |
| S$250M OF PROJECT HEADROOM AVAILABLE - RMB216m EPC project - RMB70m TOT project - More opportunities in Song Hua River region United Envirotech Limited (UEL) has just secured two more projects in China. The first is a large RMB216m (S$43m) EPC project to build a 100k m3/day drinking water plant in Yantai City, Shadong Province. UEL also won the tender for a Transfer-Operate-Transfer (TOT) project in Shangzhi, Harbin city, Heilongjiang Province, which UEL is investing RMB70m (S$14m) for a 30-year concession to operate the 40k m3/day treatment plant. Going forward, UEL says it will continue to actively explore investment opportunities in China's north-eastern region, especially around the Song Hua River. Based on the usual 40% equity funding ratio, we estimate that the remaining S$100m proceeds from its CB issue can finance up to another S$250m worth of projects. With its latest TOT win, we bump up our FY13 revenue and earnings estimate by 2% and 3% respectively. As such, our DCF-based fair value inches up slightly from $0.50 to S$0.52. Maintain BUY. |
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