HanKore Env   

HANKOREcontinuation wedge(bullish)target 6-7c soon

The notes do not seem to have been listed yet?

 

Ya...thx manz...lucky forever! Not just 03!

Hope this ctr reaches my 50c target in 6 mths! 

 

Thank you lucky03, very informative. 

 

That may explain why there are so many short sellers last week as there are many skeptic doubting if Hankore can pull off and still have grave concern with its history and state of transparency and if they will repeat the days of Bio-Treat to default as what they did with the CB investors few years ago. We will all have to watch and see.

Hankore did a roadshow hosting many funds managers last year from Aug 31 - Sep 2 post FY 2012 result announcement. Let's see if they will plan to do it again this year.

"HanKore Environment Tech Group Limited Successfully Held Road Show in Singapore
HanKore Environment Tech Group Limited successfully held a road show in Singapore during August 31 to September 2. Mr. Chen Dawei, Executive Chairman and CEO, Mr. Lin Zheying, Executive Director, Mr. Paul Lim, Non-Executive Director, Mr. Felix Yau, Independent Director, Mr. Yang Zhiming, CFO, Mr. Zuo Wei, COO, and representatives from Dezhou Fund, Shah Capital Fund and Boustead Group attended the road show.

Dozens of mainstream media in Singapore interviewed with the management team during the road show, including The Business Times, The Straits Times and Lianhe Zaobao. The management also shared the future development plans of the Group with a number of analysts and fund managers from CIMB, UOB, OCBC, DBS, as well as having a face-to-face communication with dozens of stock brokers.

The road show was a complete success."

 

I'm surprised that Swiber issued bods at 12.5% and Ezra issued bonds at 11.42% perpetual as indicated by this report at the bottom. All in all, looks like Hankore notes issuance is indeed a very successful one ?

July 25 (Bloomberg) ? Person familiar with the matter
says.
Issuer: HanKore Environment Tech Group Ltd.
Tenor: 2-yr
Initial Price Guidance: 7.5% area
Timing: Expected this week?s business, as early as today
Sale Manager: DBS
Format: Reg S S274 & 275 of Singapore SFA off SGD300 million
Ranking: Direct, unconditional, and unsubordinated
Person asked not to be identified because the terms aren?t set

Penny stocks coming out for a share of the pie. This company is the former Bio-Treat Group.

Warning : The company had issued and defaulted on their convertible bonds ! (READ THE OFFERING CIRCULAR)

Volatile earnings stream. 1 year up, 1 year down.

Recap Pretax Income.

06/2012 +104.13 mio
06/2011 -408.94 mio
06/2010 +224.22 mio
06/2009 -703.34 mio

Market cap is SGD 249 mio. MTN Programme size is SGD 300 mio.

Change of Shareholding: Change of Shareholding Event Put at 101% upon Chairman ceasing to be single largest shareholder
Financial Covenants:
(i) Consolidated Tangible Net Worth ≥ RMB1,200,000,000
(ii) Consolidated Net Borrowings to Consolidated Tangible Net Worth ≤ 1.5:1
(iii) Consolidated Secured Debt to Consolidated Total Assets ≤ 0.5:1.
Interest Reserve Account:Six months interest in reserve, in addition to pre-funded interest payment at least 3 months prior to each payment date

Note the hefty number of covenants which have to be kept but there is no restriction on any FUTURE CONSENT SOLICITATIONS that we have been seeing in the market for Aspial, Hyflux and PCRT !!

How amazing that the order books are now 50 million.

Yet it is a case of willing buyer and willing seller.

I do not understand how this bond could be any better than Swiber (12.5%) or Ezra (11.42%) perpetual.

With that, I rest my case.

Source : http://tradehaven.me/2013/07/25/new-...ech-group-ltd/

 

The below article is OCBC Bank assessment of Hankore note issuance prior to its successful launch a day later. Apparently, the successful issuance of the notes at 7.5% should be viewed positively :

Underweight
S&P: Not rated Moody?s: Not rated Fitch: Not rated
Ticker: BIOTSP
Treasury Advisory Corporate FX & Structured Products
Tel: 6349-1888 / 1881
Fixed Income & Structured Products
Tel: 6349-1810
Interest Rate Derivatives Tel: 6349-1899 Investments & Structured Products
Tel: 6349-1886
Hankore Environment Tech Group Limited (?Hankore?) this morning announced a proposed 2-year S$-denominated HY issue, with initial price guidance at the 7.5% area. The bond has the following structural features: 1) A COC put at 101 should the Chairman cease to be the largest shareholder of the company 2) An interest reserve account containing 1 semi-annual interest payment, to be prefunded at least 3 months prior to interest payment date and 3) Financial covenants ? consolidated tangible net worth of at least RMB1.2bn, consolidated net borrowings to consolidated tangible net worth of <=1.5:1 and consolidated secured debt/consolidated total assets <=0.5:1. The expected use of proceeds will be for general corporate purposes. Currently, the order books are in excess of S$50mn.
New issue view
Despite the improving operating trajectory of the company post-restructuring and a modest capital structure under a predominantly new management team, we retain some concerns about residual corporate governance issues, given the haircut taken by CB investors during the debt restructuring in 2010 and 2011. At the price guidance of 7.5%, the 73bp premium over the CENCHI?16 (indicated at 109.7 offer/6.77%YTM) does not seem to be sufficient, given: 1) Its past corporate history 2) Lack of strong parentage 3) Weaker covenants relative to CENCHI and 4) The proposed bond offering is its debut issuance in the SGD HY market post restructuring.
The key risk to our view is the potential for the bond issue to print, given the high yield on offer for a relatively short duration paper, a generous PB rebate and the recent pick-up in SGD high yield new issuance.
Hankore Environment Tech Group Limited: New Issue View
New issue highlight
Thursday, July 25, 2013

Asia Credit Research

 

Hope that we are correct at least in charting point of view... FA seem no strength to move Hankore, no matter how bullish those  news announcements...

 

The Bollinger Bands reveal a possible price reversal as it has exhibited the early sign of divergent again after having been converging over many days, esp, the lower band.

cccx123      ( Date: 10-Aug-2013 17:02) Posted: Mixed signals.. Lucky03      ( Date: 10-Aug-2013 14:22) Posted: http://finance.yahoo.com/q/ta?s=B22.SI&t=1y&l=on&z=l&q=l&p=m20%2Cm100%2Ce200%2Cb%2Cm50&a=m26-12-9%2Cfs%2Css&c=

 

Mixed signals..

Lucky03      ( Date: 10-Aug-2013 14:22) Posted: http://finance.yahoo.com/q/ta?s=B22.SI&t=1y&l=on&z=l&q=l&p=m20%2Cm100%2Ce200%2Cb%2Cm50&a=m26-12-9%2Cfs%2Css&c=

 

http://finance.yahoo.com/q/ta?s=B22.SI&t=1y&l=on&z=l&q=l&p=m20%2Cm100%2Ce200%2Cb%2Cm50&a=m26-12-9%2Cfs%2Css&c=

 

There are many opportunities within HANKORE asset class for upgrade from emission standard B to A to include sludge treatment such as the one announced below on 19 Nov 2012 which itself will already have positive impact to HANKORE FY 2013 result to be announced in about 2 weeks. There are also many operators who may not have the financial means to invest even when the opportunity knocks at their door for improved tariff rate to upgrade the standard of emission. These are candidates for takeover and HANKORE recent funding exercise will ready it for such acquisition to expand its portfolio quickly and improve overall economy of scale to lower operating unit cost and hence profit margin.

HanKore Environment Tech. Group Limited 汉 科 环 境 科 技 集 团
Room 1105-1110, 11F, Jialong International Tower,
No.19 Chaoyang Park Road, Chaoyang District, Beijing, PRC 100125 北 京 市 朝 阳 区 朝 阳 公 园 路 19 号 佳 隆 国 际 大 厦 1105-1110,邮 编 100125
Press Release
HanKore?s Xianyang Eastern Suburbs Plant receives approval from Chinese authorities for 44.3% hike in water tariff to RMB1.01/ton
? Hike in tariff to take place once Phase 2 capacity of Xianyang plant is completed, which will double to 200,000 tons/day
? Positive financial impact for the Group?s FY2013 performance
Singapore, 20 Nov 2012 ? HanKore Environment Technology Group (?HanKore?, ?the Group? or 汉 科 环 境 科 技 集 团 ), an international leader in the water environment market in China, recently obtained approval from Chinese authorities to increase the water discharge fees of second phase by 44.3% from RMB0.70/ton to RMB1.01/ton at its Xianyang Eastern Suburbs Wastewater Treatment Plant located in Xianyang City, Shaanxi Province.
The hike in tariff will take place once the second phase of the Xianyang plant is completed, which will double capacity to 200,000 tons/day. This hike is expected to provide a positive financial impact for the Group?s FY2013 performance.
Spanning an area of 102 mu, the Group?s Xianyang plant, is the largest wastewater treatment plant in the Weihe River Basin1. Officially launched in 2006, the first phase of Xianyang plant has a waste water treatment capacity of 100,000 tons/day, discharging Grade B quality of water2. With the completion of second phase, total waste water treatment capacity would be raised to 200,000
1 The Weihe River Basin is the largest tributary of the Yellow River and located in west-central China?s Gansu and Shaanxi Provinces (Source: Wikipedia)
2 Quality of water in accordance to discharge standard of pollutants for municipal waste water treatment plant set by the Ministry of Environmental Protection of the People?s Republic of China. Grade A denotes acceptable quality of water discharged to smaller lakes and rivers in urban areas for general water reuse purposes. Grade B denotes acceptable quality of water discharged to enclosed body waters or certain classified marine waters.

 

The May 3 announcement :

HANKORE ENVIRONMENT TECH GROUP LIMITED
(Incorporated in Bermuda) (Company Registration No. 34074)
_________________________________________________________________________________
BUILD-OPERATE-TRANSFER (?BOT?) SUPPLEMENTARY AGREEMENT (THE ?BOT SUPPLEMENTARY AGREEMENT?) ENTERED INTO BY NANJING JIN HUAN WATER DEVELOPMENT CO., LTD (?NANJING JIN HUAN?) WITH THE BUREAU OF HOUSING AND URBAN-RURAL DEVELOPMENT, LIUHE DISTRICT, NANJING CITY (THE ?BUREAU?) IN RESPECT OF THE NANJING LIUHE WASTEWATER PLANT (THE ?NANJING PLANT?)
_________________________________________________________________________________
Introduction
The Board of Directors of HanKore Environment Tech Group Limited (the ?Company?) wishes to announce that its subsidiary Nanjing Jin Huan has entered into the BOT Supplementary Agreement in relation to the Nanjing Plant with the Bureau on 26 April 2013.
Due to the changes in the Discharge Standard of Pollutants for Municipal Wastewater Treatment Plants, the requirement for the water standard after being treated by the Nanjing Plant has been raised from Grade B to Grade A. This is different from the standard under the BOT agreement and the service agreement executed between the parties on 8 December 2006. Therefore, Nanjing Jin Huan and the Bureau have entered into the BOT Supplementary Agreement in respect of the treatment process, investment scope, project schedule and increase of the unit price of the wastewater treatment, and the key terms are as follows:
Key Terms of the BOT Supplementary Agreement
1. Upgrading Standards: The water standard after treatment shall be upgraded from Grade B to Grade A, with a wastewater treatment capacity of 40,000m3 per day the moisture content of sludge after treatment will not be higher than 60% (the ?Upgrading Project?).
2. Project Period: The Upgrading Project shall commence not later than 30 April 2013 and be completed before 15 September 2013.
3. Price Increase: The total investment in the Upgrading Project is around RMB45 million. According to the assessment report dated 20 April 2013 issued by Nanjing Jiaxin United Certified Public Accountants and Jiangsu Kres Project Investment Consulting Co., Ltd. (the ?Assessment Report?), the assessed unit price for the wastewater treatment is temporarily increased by an additional RMB0.5254 per tonne, from RMB0.92 per tonne to RMB1.4454 per tonne. The aforesaid price increase shall be subject to reassessment, and the final price for the wastewater treatment shall be determined by the financial audit by taking references from the Assessment Report, after the Upgrading Project has been completed and operation has commenced.
BY ORDER OF THE BOARD
Chen Dawei, David Executive Chairman 09 May 2013

Lucky03      ( Date: 10-Aug-2013 13:39) Posted: Noted that Hankore's agreement is to attain grade A emission standard and it includes sledge treatment. Most of the other plants are low cost treatment plants commanding less than 0.70 RMB per tonne which Hankore is working to move away. They are not sustainable and no financial support to innovate. This is described in its 3rd supplementary agreement : Following from the above, the parties agree that the basic water tariff for the Nanjing Project will be 1.385 RMB per Tonne of wastewater treated (for each of Phase 1 and Phase 2). The total water tariff including the sludge treatment will be 1.475 RMB per Tonne of wastewater treated (For more details relating to the sludge treatment at the Nanjing Pukou Plant, please refer to the announcement dated 3 May 2013). hmphie      ( Date: 10-Aug-2013 12:22) Posted: The dark side of China water treatment. http://www.marketwatch.com/story/chinas-urban-sludge-dilemma-sinking-in-stink-2013-08-09

 

Noted that Hankore's agreement is to attain grade A emission standard and it includes sledge treatment. Most of the other plants are low cost treatment plants commanding less than 0.70 RMB per tonne which Hankore is working to move away. They are not sustainable and no financial support to innovate. This is described in its 3rd supplementary agreement :

Following from the above, the parties agree that the basic water tariff for the Nanjing Project will be 1.385 RMB per Tonne of wastewater treated (for each of Phase 1 and Phase 2). The total water tariff including the sludge treatment will be 1.475 RMB per Tonne of wastewater treated (For more details relating to the sludge treatment at the Nanjing Pukou Plant, please refer to the announcement dated 3 May 2013).

hmphie      ( Date: 10-Aug-2013 12:22) Posted: The dark side of China water treatment. http://www.marketwatch.com/story/chinas-urban-sludge-dilemma-sinking-in-stink-2013-08-09

 

Target to reach $0.06  within 2  week time.

Huat to all..!!

 

The dark side of China water treatment. http://www.marketwatch.com/story/chinas-urban-sludge-dilemma-sinking-in-stink-2013-08-09

 

4 reasons Hankore price should turnaround next week :

1. Technical heavily oversold, no thanks to the short sellers.

2. The 3rd supplementary agreement for Nanjing Pukou that will command 40,000 tons daily output with premium grade quality and higher tariff rate.

3. Sharing by leeeta on Shanghai that indicates more upward revision of tarrif rate to come.

4. The better than expected economic data from China announced on Thurs and Fri.

Over and above the rest, there may be SGX Buy-In this week.

 

Economic figures announced by China this week are the latest evidence of a turnaround in domestic demand and in the wider economy, economists said

Hong Kong
ECONOMIC figures announced by China this week are the latest evidence of a turnaround in domestic demand and in the wider economy, economists said.
"The producer price index (PPI) and import growth point to a recovery in domestic demand," Liao Qun, senior vice-president and chief economist and strategist at the China banking division of China Citic Bank International Ltd, told the Hong Kong Economic Journal's EJ Insight yesterday.
Raymond Yeung, a senior economist at Australia and New Zealand Banking Group, said that downward pressure on the economy is "fading and the central government should be able to stabilise the economy".

 

Hk's 4Q & FY13 results will set the EPS for HK's revaluation. If 4Q same as FY12 at 0.02, and JT at 0.008, then the full year estimated EPS will be close to 0.045 or about $0.009. I am more keen to see whether there will be any asset revaluation from BAML report. The forward guidance should get many excited. Also expect new projects on stream that will reinforce HK as the new turnaround water asset. The revenue/profit stream will be more attractive going forward. CE

 

With China doing all they can to avert a crisis..pumping money in trillions of RMB and increasing water tariffs ..how not to HUAT!!!

 

Water 30% costlier as new tariffs introduced

July 31st, 2013 | Shanghai Daily