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Bro Lucky - back to square one liao. Whatever good news they announce, its back to 3.5cts. This has been tango-ing like these for the last 12-16 months..sigh.. Patience running thin.
This stock will only pickup if
1) they announce multi billion dollar deal happens
2) RTO
3) they want to raise funds...(sell when they announce rights issue coz the pump up and dump). other than that....this stock perpetually in ICU state.
Lucky03 ( Date: 01-Dec-2012 10:16) Posted:
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Such transaction does not usually boost the share price in the short term. Still will like to hear more about winning new deals and improved water tariff.
[QUOTE=enjoylife77 972332]Good news to propel the counter?[/QUOTE]
I suppose there are 5 likely positive observations :
1. The transaction is executed with shares swap and no cash payment
2. The deal values Hankore at $$0.05 vs current market price of S$0.036
3. On the other hand, 'The Target' was valued at RMB162.4M but the shares swap was arrived at 540M shares by only factoring in only RMB138M based on 6 times projected 2013 NP giving an 'immediate asset gain'. Further, the deal allows Hankore to cancel corresponding number of consideration shares if the profit falls short of the projection. Hankore will pay cash incentives of 3 times the difference if it exceeds, capped at max of RMB30M.
4. The revenue and profit will boost Hankore performance for this financial year closing 2013.
5. Hankore will be able to leverage on 'The Target' for expanded business and IPs.
FINANCIAL EFFECT OF THE ACQUISITION
NTA
Had the Acquisition taken place on 30 June 2012 (being the end of the most recently completed financial year of the Group), the Acquisition would not have a material effect on the NTA of HanKore as the NTA of the Target is immaterial. However, the issuance of the 540 million new shares will dilute the NTA per share by approximately 11% for the current financial year. The earnings of the Company in the current financial year ending 31 July 2013 is expected to be positively affected by the amount of the Acquisition as set out in paragraph 4.2 below.
EPS
For illustration purposes, had the Acquisition taken place on 1 July 2011 (being the beginning of the most recently completed financial year of the Group), the Acquisition would have had the following effects on the EPS of the Group :-
Before the
After the
Acquisition(1)
Acquisition(2)
Profits attributable to equity holders of the Company (RMB’000)
102,643
119,922
EPS (cents)
0.0247
0.0255
I suppose there are 5 likely positive observations :
1. The transaction is executed with shares swap and no cash payment
2. The deal values Hankore at $$0.05 vs current market price of S$0.036
3. On the other hand, 'The Target' was valued at RMB162.4M but the shares swap was arrived at 540M shares by only factoring in only RMB138M based on 6 times projected 2013 NP giving an 'immediate asset gain'. Further, the deal allows Hankore to cancel corresponding number of consideration shares if the profit falls short of the projection. Hankore will pay cash incentives of 3 times the difference if it exceeds, capped at max of RMB30M.
4. The revenue and profit will boost Hankore performance for this financial year closing 2013.
5. Hankore will be able to leverage on 'The Target' for expanded business and IPs.
FINANCIAL EFFECT OF THE ACQUISITION
NTA
Had the Acquisition taken place on 30 June 2012 (being the end of the most recently completed financial year of the Group), the Acquisition would not have a material effect on the NTA of HanKore as the NTA of the Target is immaterial. However, the issuance of the 540 million new shares will dilute the NTA per share by approximately 11% for the current financial year. The earnings of the Company in the current financial year ending 31 July 2013 is expected to be positively affected by the amount of the Acquisition as set out in paragraph 4.2 below.
EPS
For illustration purposes, had the Acquisition taken place on 1 July 2011 (being the beginning of the most recently completed financial year of the Group), the Acquisition would have had the following effects on the EPS of the Group :-
Before the
After the
Acquisition(1)
Acquisition(2)
Profits attributable to equity holders of the Company (RMB’000)
102,643
119,922
EPS (cents)
0.0247
0.0255
HANKORE ENVIRONMENT TECH GROUP LIMITED
(Incorporated in Bermuda) (Company Registration No. 34074)
_________________________________________________________________________________
ACQUISITION OF THE ENTIRE ISSUED SHARE CAPITAL OF JIANGSU TONGYONG ENVIRONMENT ENGINEERING CO., LTD BY THE COMPANY (“ACQUISITION”) _________________________________________________________________________________
1. INTRODUCTION
The Board of Directors of HanKore Environment Tech Group Limited (the “Company” and, together with its subsidiaries, the “Group”) wishes to announce that the Company has entered into a Acquisition Agreement (the “Agreement”) with Jiangsu Tongyong Environment Group Co., Ltd. (the “Group Co”), Zhang Juping, Zhang Mingyin (collectively, the “Vendors”), and Jiangsu Tongyong Environment Engineering Co., Ltd. (the “Target”) to acquire the entire issued share capital of the Target (the “Target Shares”).
The Group Co, Zhang Juping and Zhang Mingyin own 96.37%, 1.87%, and 1.76% of the shares in the Target respectively.
2. CONSIDERATION
Pursuant to the terms of the Agreement, the Vendors have warranted that the audited net profit of the Target for the Target’s financial year ending 31 December 2013 will be not less than RMB23 million (“Target 2013 NP”). Accordingly, the parties have agreed that the consideration payable for the Target Shares shall be eight (8) times the amount of the Target 2011 NP (about six (6) times the amount of the Target 2013 NP), being RMB138 million (or approximately S$27.1 million, subject to adjustment as set out below (“Consideration”).
The Consideration is based on i) arm’s length negotiations between the Company and the Vendors, ii) a willing buyer-willing seller basis, after taking into account various commercial factors, and iii) a valuation report on the Target prepared by Zhong Tong Cheng Assets Valuation Co., Ltd. dated 26 November 2012, which valued the Target Shares at approximately RMB162.4 million.
The Consideration will be paid by the issue of new ordinary shares in the Company to a company nominated by the Vendors (the “Receiving Company”). Subject to adjustment as set out below, the aggregate number of ordinary shares to be issued to the Receiving Company will be 540 million shares (the “Consideration Shares”) based on the following formula, and the share price is S$0.05:
RMB138 million / S$0.05 x 5.1062 (being the agreed exchange rate) = 540 million shares
(Incorporated in Bermuda) (Company Registration No. 34074)
_________________________________________________________________________________
ACQUISITION OF THE ENTIRE ISSUED SHARE CAPITAL OF JIANGSU TONGYONG ENVIRONMENT ENGINEERING CO., LTD BY THE COMPANY (“ACQUISITION”) _________________________________________________________________________________
1. INTRODUCTION
The Board of Directors of HanKore Environment Tech Group Limited (the “Company” and, together with its subsidiaries, the “Group”) wishes to announce that the Company has entered into a Acquisition Agreement (the “Agreement”) with Jiangsu Tongyong Environment Group Co., Ltd. (the “Group Co”), Zhang Juping, Zhang Mingyin (collectively, the “Vendors”), and Jiangsu Tongyong Environment Engineering Co., Ltd. (the “Target”) to acquire the entire issued share capital of the Target (the “Target Shares”).
The Group Co, Zhang Juping and Zhang Mingyin own 96.37%, 1.87%, and 1.76% of the shares in the Target respectively.
2. CONSIDERATION
Pursuant to the terms of the Agreement, the Vendors have warranted that the audited net profit of the Target for the Target’s financial year ending 31 December 2013 will be not less than RMB23 million (“Target 2013 NP”). Accordingly, the parties have agreed that the consideration payable for the Target Shares shall be eight (8) times the amount of the Target 2011 NP (about six (6) times the amount of the Target 2013 NP), being RMB138 million (or approximately S$27.1 million, subject to adjustment as set out below (“Consideration”).
The Consideration is based on i) arm’s length negotiations between the Company and the Vendors, ii) a willing buyer-willing seller basis, after taking into account various commercial factors, and iii) a valuation report on the Target prepared by Zhong Tong Cheng Assets Valuation Co., Ltd. dated 26 November 2012, which valued the Target Shares at approximately RMB162.4 million.
The Consideration will be paid by the issue of new ordinary shares in the Company to a company nominated by the Vendors (the “Receiving Company”). Subject to adjustment as set out below, the aggregate number of ordinary shares to be issued to the Receiving Company will be 540 million shares (the “Consideration Shares”) based on the following formula, and the share price is S$0.05:
RMB138 million / S$0.05 x 5.1062 (being the agreed exchange rate) = 540 million shares
The volume transacted last Friday was 28680 lots. Today traded volume was 2982 lots. Looked like no contra pressure. Given that Hankore is not marginable or limited, most will then be holding in cash and hence unlikely to face any forced sell pressure for any sudden price swing. Hope it will form a stable base and prepared for next upward movement when it announces any positive development from now till next quarterly or half year result announcement mid Feb 2013.
yeah agreed ..does not make sense ...but the px movement tells u a different story.
Doesn't make sense to short Hankore. The most the short sellers can make is 3.3 cents assuming it drops to the minimum bid of 0.001-0.002. The capitalization is also quite low to wet the appetite. So, these are only small players but they can get wiped out if the 'inevitable happens'... which is more likely today compared to last year esp after China announced their 5 yrs plan that include increased investment on environmental protection that are translating into real opportunities and evidently increased tariff rate.
leeeta ( Date: 30-Nov-2012 13:55) Posted:
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thats why I say...got to wait long long unless the inevitable happens
Ummp... it is interesting if traders are borrowing Hankore scripts to short it, although I noticed there is 'programmed' selling of 1 lot to .035 every 8 mins or so. How to know how many shares are being borrowed like the Olam case ? I didn't offer mine to be borrowed. Earning that bit of extra revenue is not worth it.
leeeta ( Date: 30-Nov-2012 13:29) Posted:
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Bro Lucky -- you need to amend ur statements..now going back to .035cts.. Dont call that growth in px terms..
This share got shortist cornering it.. and with no CK pumping it up..it is just so hard.. unless Hankore produces sterling results or announces Big Big lucrative projects. Unless that happens.. it will be under 4cts for a long long time..blame the shortist and blame it for being a China stock.
It was stuck in the range .034-.035 in mth of Oct. It seems 'stuck' in range of .036-.037 for the mth of Nov and if it will move to range of .038-.039 in Dec, that's still a reasonable growth ? Of course to sustain that, we will like to see Hankore sharing more positive developments. I'm not taking this position for fly by night.
#37
Lucky03
Member
Join Date
Apr 2008
Posts
35
SINGAPORE: China-based water treatment firm SIIC Environment will transfer from the Catalist to the mainboard of the Singapore Exchange on Friday, a move that will help its plan for a Hong Kong dual listing by the end of next year.
SIIC Environment said that a mainboard listing will give it a greater access to funds, given that the firm only has a market capitalisation of S$300 million.
This will help provide capital to grow organically and through acquisitions, it said.
The firm, backed by the Chinese state-owned conglomerate Shanghai Industrial Holdings, intends to invest up to S$590 million to build its water treatment and environmental solutions business over the next two to three years.
It made a full year net profit of S$27 million for 2011 and has a water treatment capacity of 3.2 million tonnes a daily - enough to supply a population of 10 million people.
Lucky03
Member
Join Date
Apr 2008
Posts
35
SINGAPORE: China-based water treatment firm SIIC Environment will transfer from the Catalist to the mainboard of the Singapore Exchange on Friday, a move that will help its plan for a Hong Kong dual listing by the end of next year.
SIIC Environment said that a mainboard listing will give it a greater access to funds, given that the firm only has a market capitalisation of S$300 million.
This will help provide capital to grow organically and through acquisitions, it said.
The firm, backed by the Chinese state-owned conglomerate Shanghai Industrial Holdings, intends to invest up to S$590 million to build its water treatment and environmental solutions business over the next two to three years.
It made a full year net profit of S$27 million for 2011 and has a water treatment capacity of 3.2 million tonnes a daily - enough to supply a population of 10 million people.
What so funny about it ??
leeeta ( Date: 30-Nov-2012 09:49) Posted:
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Haha - still stuck today at .036cts. Its a one day wonder stock..thats all to it. For it to cheong, have to wait very long long. Live with it.
Showing good valid and real data and comment. I appreciate that.
Lucky03 ( Date: 29-Nov-2012 22:50) Posted:
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Hyflux $1.275 NAV $0.568 PE 19+
UtdEnvirotech $0.405 NAV $0.3845 PE 18+
Hankore $0.037 NAV $0.0736 PE 7+
Tomorrow is acid test if last week's surge in volume are by people with holding power or weak buyers that will have to contra off.
UtdEnvirotech $0.405 NAV $0.3845 PE 18+
Hankore $0.037 NAV $0.0736 PE 7+
Tomorrow is acid test if last week's surge in volume are by people with holding power or weak buyers that will have to contra off.
Hulumas ( Date: 29-Nov-2012 20:34) Posted:
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The rally game is just starting, so keep buying back at Sgd. 0.035 and 0.034!
leeeta ( Date: 22-Nov-2012 21:35) Posted:
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Recovery stock multibagger gain is expected in the long run! > 100% gain each year is most likely attained, I suppose.
radiantforce ( Date: 23-Nov-2012 10:17) Posted:
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any idea why this shot up today??
all that positive news cant even raise a fraction of a cent for this stock. pathetic. Even teledata is positive today. empty shell YHM has also outrun and outgun this stock.