Citic Envirotech   

United Envirotech

Kee liao. Good luck. 

 

Hankore has been running for the past 1 week, don't you realise?

They are in the same sector. 

zincsulfate      ( Date: 24-Sep-2013 11:42) Posted: What does hankore mean?

 

What does hankore mean?

 

Time to do some catch up with Hankore.

vested at 0.895.   On Q @ 0.905 for more. 

 

United Envirotech: Secures RMB100m BOT project

By Carey Wong 

United Envirotech Ltd (UEL) has just secured a RMB100m BOT (Build, Operate, Transfer) contract in Shandong Province, China the 30k m3/day underground waste-water treatment plant is a follow-up to its earlier 100k m3/day drinking water project secured in Yantai last year. Despite the latest contract win, we note that it will only meet around 20% of our new contract wins expected this year hence, we opt to leave our forecasts unchanged for now. Instead, we could see a large dilution from the move to issue shares to buy over the membrane operations of Memstar Technology Ltd. As such, we are also more inclined to maintain our HOLD rating, although the current upside to our unchanged S$0.975 fair value (13x FY14F) is around 8%.

New RMB100m BOT project in Shandong
United Envirotech Ltd (UEL) has just secured a RMB100m BOT (Build, Operate, Transfer) contract in Shandong Province, China this to construct and operate a 30k m3/day municipal waste-water treatment plant. Scheduled to be completed by 3QCY14, it will use the company?s membrane bioreactor (MBR) technology and will be built underground, just like the 100k m3/day one it built in Guangzhou City in 2010. 

Funding is not an issue
As before, UEL plans to fund the project using the proceeds from the CB issue and share placement to KKR and bank financing. Based on its usual 40% equity/60% debt split, UEL should have no issues with coming up with S$8m of cash, given its cash balance of S$25.9m as of end Jun 2013. Recall that UEL can also tap on the recently launched US$300m MTN programme. 

Still positive on Shandong region
Noting that the latest project (which will reach 80k m3/day upon completion of Phase 2) is a follow-up of the 100k m3/day membrane-based drinking water project it secured in Yantai last year, management remains upbeat about its prospect there and intends to continue to secure more similar projects in Shandong and other parts of China. 

Maintain HOLD
Despite the latest contract win, we note that it will only meet around 20% of our new contract wins expected this year hence, we opt to leave our forecasts unchanged for now. Separately, UEL has entered into an agreement to acquire 100% of Memstar Technology Ltd?s (MTL) membrane operations for S$293.4m ? paying S$73.354m in cash and issuing 200.055m UEL shares at S$1.10 each. While the move is positive in the longer term, the stock could see a large dilution on the completion of that deal. As such, we are also more inclined to maintain our  HOLD  rating, although the current upside to our unchanged S$0.975 fair value (13x FY14F) is around 8%. 

...last: $0.89...

 

 

Sales for United Envirotech in line, but net profit fell short due

to lower Treatment margin. Capacity utilization is on track to

meet our full year expectation, but EPC wins are behind

target. We have cut FY14/15F earnings by 13%/15% to

reflect lower Treatment margin and EPC revenues. Maintain

HOLD rating, nudged down TP to S$0.90 (Prev S$ 0.97).

Source DBS

 

current market don't like right issues or placements.


  like keppel reit, also down.

 




 

 

it's a freaking bad deal..19.9x PE?????? are they crazy??

gd luck dyodd

Memstar acquisition: heavy

dilution near-term (DBS)



S$293.4m (~19.9x PE)Acquiring Memstar’s membrane operation for



dilute FY14/15F EPS by 18%/14%Long term positive but 23% new shares would



nowAcquisition pending approval, maintain Hold for

Cash cum share swap to acquire all of Memstar’s

membrane operations.

with key management and shareholders of its key

membrane supplier Memstar to fully acquire Memstar’s

membrane operation for a total consideration of S$293.4m.

Of this, S$73m will be settled in cash and the remaining

S$220.1m via the issue of 200m new shares priced at

S$1.10 a share (~19x FY14F PE).UENV has signed a S& P Agreement

Earnings dilution is substantial in the short term but

deal is long term positive

membrane supply, this acquisition would enable UENV to be

vertically integrated and to ride on growth potential of

Memstar’s membrane operations. Financially, the deal values

Memstar at 19.9x FY13 PE, which is comparable to UENV’s

valuation. Although this acquisition could boost UENV’s

FY14/FY15F PATMI by 1%/6%, the issue of new shares

would dilute FY14/FY15 EPS by 18%/14%. Post acquisition

and considering full CB conversion, KKR would be the

largest shareholder of UENV with 33.7% stake, followed by

Memstar with 23% stake.. Apart from ensuring

Acquisition pending shareholders’ approval, maintain

Hold for now.

UENV pending completion of this acquisition which is

dependent on shareholder approval within six months from

the S& P agreement. No change to Hold call and TP for now.We are maintaining our earnings forecast for

xkclzf      ( Date: 30-Jul-2013 09:24) Posted: OZONE2002, how do you think acquisition? I think it is good news, dont know why stock drop a lot  ozone2002      ( Date: 30-Jul-2013 09:13) Posted: acquisition doesn't seem to be gd news Last:0.93     Vol:1355k     -0.095 Time: 9:07AM Exchange: SGX Stock: UtdEnvirotech(U19) Signal: Bearish MACD Crossover Last Done: $0.96

 

but also incrassate the profit, isnt it?

 

dhalinx      ( Date: 30-Jul-2013 09:38) Posted: Dilution always bring share price down... ~200M new shares.

 

Dilution always bring share price down... ~200M new shares.

 

OZONE2002, how do you think acquisition?

I think it is good news, dont know why stock drop a lot 

ozone2002      ( Date: 30-Jul-2013 09:13) Posted: acquisition doesn't seem to be gd news Last:0.93     Vol:1355k     -0.095 Time: 9:07AM Exchange: SGX Stock: UtdEnvirotech(U19) Signal: Bearish MACD Crossover Last Done: $0.96

 

acquisition doesn't seem to be gd news

Last:0.93     Vol:1355k     -0.095

Time: 9:07AM
Exchange: SGX
Stock: UtdEnvirotech(U19)
Signal: Bearish MACD Crossover
Last Done: $0.96

 

United Envirotech Ltd (UEL) and Memstar Technology Ltd (Memstar), jointly announced today that UEL has entered into a sale & purchase agreement to acquire a 100% stake in Memstar Pte. Ltd. (“MPL”), a wholly owned subsidiary of Memstar, and certain assets from Memstar, for a total consideration of S$293.4 million. UEL is a leading membrane-based water treatment solution provider. UEL’s principle activities involve the provision of water treatment solutions using its proprietary advanced membrane technologies, such as the Membrane Bioreactor (MBR) technology and the Continuous Membrane Filtration (CMF) technology. Memstar is one of the leading manufacturers and suppliers of poly-vinylidene fluoride (“PVDF”) hollow fiber membrane and membrane products, with a global presence. Listed on SGX Mainboard in 2007, Memstar is equipped with strong R& D capabilities and has manufacturing facilities in Singapore and China. It’s membrane products have been used extensively by UEL in its water and wastewater treatment projects. Memstar’s superior product quality is recognized by international customers from Asia, the Middle East, Europe and the United States.  (Closing Price S$1.025, -)

 

great deal.counter to 1.50 very soon lah

 

who can analyze new M& A? I think it is good for company, the MTL is quite profitable.

 

Hopefully, we have a mild correction, and see all counter head higher, by yr end, but i dont think so,

 

tg 1.20( disclaimer)......2 mths time. vested since 80c, another wonderful stock, never hit stop.

that is if one catches correctly and with luck, this is it.

 

Last:0.995     Vol:6725k     +0.04

12.5 bagger from low of $0.08 which i have bought before...

 

KkR fund win big...dollars club member,,,fund next target

 

Hi

This is my personal view on this stock.