Stock Name: UtdEnvirotech
Company Name: UNITED ENVIROTECH LTD
OCBC Investment Research in an Apr 10 research report says: "United Envirotech (UEL) has recently entered into a sales and purchase agreement to acquire an 80% stake in Fujian Liyang Envirogroup Co and Shaxian Lanfang Water Co for RMB116 million (or $23.2 million).
"Separately, UEL had earlier entered into a sales and purchase agreement to acquire a water supply plant and a waste-water treatment plant serving the textile companies located in industrial parks in Changyi City.
"Based on our estimations, the four plants could bring in combined revenue of RMB26m/quarter, with EBITDA margins likely between 65% and 70%. We are keeping our FY2012 estimates unchanged; instead, we bump up our FY2013 revenue forecast by 8.6% and earnings by 8.8%. Our DCF-based fair value remains unchanged at 50 cents. MAINTAIN BUY."
Company Name: UNITED ENVIROTECH LTD
| Research House: OCBC | Price Call: BUY | Target Price: 0.50 |
OCBC Investment Research in an Apr 10 research report says: "United Envirotech (UEL) has recently entered into a sales and purchase agreement to acquire an 80% stake in Fujian Liyang Envirogroup Co and Shaxian Lanfang Water Co for RMB116 million (or $23.2 million).
"Separately, UEL had earlier entered into a sales and purchase agreement to acquire a water supply plant and a waste-water treatment plant serving the textile companies located in industrial parks in Changyi City.
"Based on our estimations, the four plants could bring in combined revenue of RMB26m/quarter, with EBITDA margins likely between 65% and 70%. We are keeping our FY2012 estimates unchanged; instead, we bump up our FY2013 revenue forecast by 8.6% and earnings by 8.8%. Our DCF-based fair value remains unchanged at 50 cents. MAINTAIN BUY."
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