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PROPOSED DUAL PRIMARY LISTING ON THE MAIN BOARD OF THE STOCK EXCHANGE OF HONG KONG LIMITED - CLEARANCE AND IN-PRINCIPLE APPROVAL FROM THE SINGAPORE EXCHANGE SECURITIES TRADING LIMITED
Still room for correction!
ruanlai ( Date: 02-Feb-2010 09:05) Posted:
| Today this baby is going to be up up all the way with the FM is coming in to prepare for listing in HKSX. |
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| Epure International
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| Company update - The father, the son and the IFC - by Gary Ng
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| (EPUR SP / EPIL.SI, OUTPERFORM - Maintained, S$0.90 - Tgt. S$1.28, Utilities)
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| Maintain Outperform on Epure with a raised target price of S$1.28 (from S$1.14). Our earnings estimates have been raised by 16-34% for FY10-11 on the back of higher revenue assumptions, adjusted for earnings dilution from new shares issued for its proposed dual listing in Hong Kong. Still based on 20x CY11 P/E, our target price rises from S$1.14 to S$1.28 following our upgrade. Epure wants BOT contributions to make up 30% of its revenue in 3-5 years' time, from 10% currently, on the back of a trend in China to award water projects in the form of BOTs. Financing for such projects has been largely taken care of, by: 1) a US$50m project-financing loan from the International Finance Corporation; 2) a credit line of Rmb5bn recently secured by the Sound Group from Bank of China; and 3) Epure's own balance sheet and additional funds from any successful Hong Kong dual listing. Other than contributions from its higher-margin Marafiq contract in Saudi Arabia, BOT contract awards in China and Taiwan are expected to provide stock catalysts.
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Today this baby is going to be up up all the way with the FM is coming in to prepare for listing in HKSX.
