Citic Envirotech   

Projects delays

that's a huge stake they sold at a loss..i remember them buying @ 26c..wonder what's their impetus for selling..?

 

CGO completed the sell-off today...

 

gone limp today..

have to see the closing volume.. to see if the rally is sustainable..

 

HUAT AH!!!..look at the vol today..look at the price surge today!..

continue to accumulate :)

 

finally this one is moving..

i considered "major" shareholder of this stock..keke..

accumulated like crazy below 10c with my life savings....

 

26c !...OHL effect!.. manipulation in progress..i love kelong!

 

water plays are hot today!...sino-enviro..utdenviro..

all above water..keke

cheers!

 

this counter XD...but still went up... definitely manipulation la! those bought @ 21c laughing to the bank

 

this bugger has strong support @ 24c...sigh..anyone in it for the OHL effect?

 

support OHL!... will buy with ALL my life savings.. but not at the moment..

let the herds momentum die off then i go in..

 

OHLF, a private investment firm controlled by tycoon Oei Hong Leong, has a 30.25% stake in Novena as at April 23. The new shares represent 16.67% of United Envirotech's enlarged share capital. Novena is subscribing for 49.67 million shares or 12.49% of United Envirotech's enlarged share capital while OHLF is subscribing for 16.6 million units or 4.18%.

Its membrane systems have been successfully used in pharmaceutical, food and beverage, and textile and dye staff industries.

 

United Envirotech soared more than 26% to a four-month high of $0.285 with over 6.6 million shares traded after it raised funds from a new shares sale to a business tycoon.

The company sold 66.4 million new shares to Oei Hong Leong Foundation and its partly-owned consumer retailer Novena at $0.21 a share -- a 6.7% discount of its last closing price of $0.225.

"This is a low profile counter but it is in the water treatment sector, which is quite attractive. Oei Hong Leong is quite a savvy investor. When he buys, other investors follow," a dealer said.

 

Report from CIMB.

United Envirotech's 4Q08 net profit of S$1.1m (+166% yoy) was below our expectations, accounting for just 8% of our full-year forecast. The key variance was slower-than-expected revenue booking of 4 turnkey projects and higher local land taxes from 4Q08. Consequently, EBITDA margin of 17% was below our expectation of 25%, despite in-line gross margins of 34%. FY08 net profit of $8.5m accounts for just 65% of our full-year forecast.

Turnkey revenue deferred to FY09. Progress of four turnkey projects – CNOOC, Sinopec Luoyang, Sinopec Jinling and CNPC Harbin branch – was slower than expected in 4Q08, in part due to seasonally fewer operating days. Completion of the four projects was previously expected in FY08. We estimate that about $15m revenue from these projects would be deferred to 1HFY09.

Potential delay in Mianyang BOT construction. Mianyang City is located 40km from the epicentre of the recent earthquake in Sichuan Province. While UENV suffered no damages as only design works had been done for the 60%-owned BOT project (secured in Jan 08), we now expect construction to be delayed from 2QCY08 (1QFY09) to the end of the year. As a result, we have shaved our FY09 turnover forecast by 13%, with the bulk of the $12m project deferred to FY10.

Estimated outstanding turnkey order book of $48m. We have assumed that 69% of this order book will be recognised in FY09. Given UENV's lumpy track record, we have stretched our recognition schedule to 15-18 months, from 12 months previously. We also understand that UENV is in advanced negotiations for 2-3 projects, and do not rule out fund-raising from capital markets. Our forecasts assume new contract wins of $9m-15m for FY09-11.

A final dividend of 0.03 ct was declared, representing a 12% payout. FY09-10 EPS estimates reduced by 26-30%. Our earnings reductions account for revenue deferment for the Mianyang BOT project, smaller contract win assumptions as well as higher effective tax rates. We also introduce FY11 forecasts.

Target price cut to $0.27 from $0.46, still based on 8x CY09 P/E, following our earnings downgrade. We continue to value the stock at a discount to its water peers' average of 11x on account of a choppy delivery record and slow conclusion of contracts. However, given our conservative forecasts and valuations, our target price still offers 17% upside. Maintain Outperform.

 

watch this counter closely...getting stronger each day... 

 

Creeping up steadily..

 

Worth looking at this one. .more upside  than downside ...at your own risk as this is personal pick based on reading newspapers.. bought at 31.5 cts .

 

Heng Ah!!!!!!!! Now up 10cts oredi.

 

What happening to utd env. It keep going down?

 

It expects to be firmly in the black in the financial year to Mar 31 '08, as it expects to complete the building of 5 waste-water treatment plants.



It derives up to 80% of revenue from building waste-water treatment plants, mainly for petrochemical firms, but plans to expand its presence to municipal waste-water treatment in China in the coming years, CEO Lin Yucheng told Reuters in an interview.



Lin said that the 5 projects -- one for China National Offshore Oil Corp (CNOOC), three for Sinopec Corp, and one for the Szechuan industrial park -- are expected to earn about $50 million in revenue for the firm, which had revenue of $23.7 million in 2006.



But the company's future is in recurring income derived from build-operate-transfer or BOT, and build-operate-own water treatment projects for municipal governments, he said.



"We're going to shift the business focus to municipal waste-water treatment and recycling, because in China, water is definitely going to become a very important resource," Lin said.



He expects this to contribute 60-70% of the firm's revenue within the next three years.



"In many cities in China, less than 35% of the water is treated, and discharged into the rivers and seas everyday," said Lin.



Lin was recruited by the Economic Development Board to work as a researcher, and became a Singapore citizen in 1993. He founded Envirotech in July 2003.



Envirotech, which uses membrane filtration technology to treat waste water, aims to treat 2 million cubic metres of waste water daily and aims for $150-$200 million in revenues by 2010, which would be a 9-fold increase from last year's level.



In the next 3 months, the firm hopes to secure 5 BOT deals to treat and recycle waste water in the provinces of Shandong, Liaoning, Szechuan, Shanxi and Fujian, CFO Ngoo Lin Fong said. He added that "this would depend greatly on the firm's ability to raise funds for the investment".



If United Envirotech takes full ownership of the 5 deals, the firm would need to invest 337 million yuan, said Ngoo. He said he expected the 5 deals would contribute 72 million yuan in recurring revenue when the plants are completed in 18 months' time, provided the treatment plants run at full capacity.



Due to contract delays, Envirotech ended FY06 with a net loss of $550,000, reversing a $4.3 million profit in 2005 and profit of over $6 million in 2004 and 2003.



Lin said he expects net profit of about $15 million for the financial year from April 1, 2007 to March 31, 2008.



Its major clients CNOOC, Sinopec and China National Petroleum Corp typically award contracts in the fourth quarter or first quarter of the calendar year.



Envirotech is one of the smallest among a handful of Chinese water-treatment and environmental engineering firms listed in Singapore, with a market value of US$60 million.



Since its April '04 IPO at $0.47, Envirotech stock has fallen from a closing high of $0.60 on its first trading day to a low of $0.14 at the end of Nov '06. But it has nearly doubled in the past 3 months, making it the best performer among its peers and the 6th-best in the All-Singapore Index.



Kerryn Tay, an analyst with brokerage CIMB, said this was due partly to the CNOOC contract, which in itself was bigger than the value of all the engineering contracts the firm won in the whole of last year. In a Feb 15 client note, CIMB raised its tp for the stock to $0.44.

 

Notice that this counter shot up on these few days from 14.5 cts. Anyone know of any significant developments?