SoundGlobal   

Epure International

Still flowing well, accumulate
DBS 8/10/09

Reiterate Buy.
Notwithstanding solid fundamentals, Epure was sold down with the broader market recently.
We see recent price weakness as opportunity for investors to accumulate the stock.
Epure currently trades at 11x FY10, making it among the cheapest water stock regionally
despite having one of the strongest track record in the sector. Our TP of S$0.71 translates to
mid-cycle historical average of 14x P/E.

• On target to meet expectations; over RMB1b orderbook extends visibility till 2011
• Catalysts from potential dual/re-listing, capital recycling exercise
• Reiterate Buy with 22% upside to TP of S$0.71

RMB1.4b of EPC backlog presents visibility until 2011. YTD, Epure has secured RMB1028m
of EPC contracts including a RMB562m win in Saudi Arabia. We estimate that Epure’s backlog
is about RMB1.4b now. We forecast that 31% and 44% of this orderbook would be converted
into EPC revenue in 2H09 and over FY10-11 respectively. Given the robust water demand globally,
Epure’s orderbook should continue to grow at a healthy pace.

 

+0.015 now! 0.595 Good

 

60.5! oh so pure :)

 

56!.. nice nice..

 

 

EPURE INTERNATIONAL LTD.

(Incorporated in the Republic of Singapore)

Company registration number: 200515422C

EPURE ESTABLISHES JOINT VENTURE FOR BUILD, OPERATE AND TRANSFER PROJECT IN JIANGYAN CITY

The Board of Directors of Epure International Ltd. (the "Company") wishes to announce that its wholly-owned subsidiary, Sound International Investment Holdings Limited, has entered into a joint venture ("JV") with Jiangyan City Area Wastewater Treatment Co., Ltd ("JCA") to undertake a Build, Operate and Transfer ("BOT") project in Jiangyan City.

Details of the Joint Venture

The JV, Jiangyan Jiangyuan Wastewater Treatment Co., Ltd, is to undertake a BOT project that is located in Jiangyan City. The project is expected to have a treatment capacity of up to 80,000 tonnes of wastewater per day. It involves the building of a new treatment plant and an upgrading of an existing treatment facility. The total investment is approximately RMB56 million with a concession period of 25 years.

Epure will take a 30% stake in the JV with approximately RMB14.4 million as consideration while the consideration for JCA’s 70% stake will be in the form of the existing treatment facility. JCA will fully assign the operations and management rights of both treatment facilities to Epure during the concession period.

None of the Directors or substantial shareholders of the Company has any interest, direct or indirect (other than through their shareholdings in the Company), in the above-mentioned transaction.

The transaction is not expected to have a material impact on the net earnings per share and the net tangible assets per share of the Company for the financial year ending 31 December 2009.

By Order of the Board

Submitted by Choo Beng Lor, Company Secretary on 5 October 2009 to SGX.

About Epure International Ltd.

For further information, please contact:

Mr Yan Xiao Lei of Epure International Ltd. at +86-10 6050 4710

or e-mail yxl@epure.cn

Mr Choo Beng Lor of Epure International Ltd. at +86-10 6050 4711 or +65 6272 6678

or e-mail zml@epure.cn

Ms Huang Ying Ling of Oaktree Advisers at +65 9026 6839

or e-mail yingling@oaktreeadvisers.com

Ms Lilian Sim of Oaktree Advisers at +65 9828 5634

or e-mail liliansim@oaktreeadvisers.com

Epure is one of China’s leading turnkey water & wastewater treatment solutions providers. Backed by extensive R&D and technical expertise, it has successfully completed many award-winning projects.

The Group develops proprietary technologies and customises them into effective turnkey solutions for industrial and municipal projects. It has a strong marketing network in China, where it is much sought after for its strong design and engineering project management capabilities.

In 2006, Epure diversified into the management of water treatment plants. It has also invested in Build, Operate and Transfer (BOT) and Design, Build and Operate (DBO) projects to diversify its project portfolio. The Group recently acquired Beijing Hi-Standard Water Treatment Equipment Co., Ltd, progressing towards its aspiration of becoming a fully integrated services provider.

International Finance Corporation, the World Bank arm that promotes socially and environmentally sustainable private-sector investments, is a substantial shareholder.

In 2007, Epure was named one of the 10 Most Influential Water Companies in China and the Top 10 EPC Companies in China’s water industry. Non-executive chairman Wen Yibo ranked second among the 10 Most Influential People in the industry.

 

think i saw a news abt a JV in the announcement..

whoever dumped yesterday must be very sore..

55c! very pure :)

ozone2002      ( Date: 05-Oct-2009 16:26) Posted: 53.5! oh yeah!.. ozone2002      ( Date: 05-Oct-2009 15:34) Posted: now 53.. what goes down must go up.. :) n vice versa apply the law of newton's 1st law

 

when it goes down, it more down than others

 

 

53.5! oh yeah!..

ozone2002      ( Date: 05-Oct-2009 15:34) Posted: now 53.. what goes down must go up.. :) n vice versa apply the law of newton's 1st law

 

Ho Solomon,

Mind to enlighten why kept calling a dump of this stock?

 

 

dump

dump

dump

 

 

now 53.. what goes down must go up.. :) n vice versa

apply the law of newton's 1st law

 

dump

 

OVERSOLD!..will bounce back up again..

 

dump man dump the stock

these are the stock that go down big time when tide turns - analyst

 

Epure is sinking hard! 

 

juz came back fro Bnagkok for a short holiday n was surprise by tt sudden drop of tis counter. any reason ?

 

Wed, 9 Sep 2009, OCBC Investment Research

More upside potential on positive breakout

Key resistance breached.
Epure could be poised for more upside in the weeks ahead after clearing the $0.620 key resistance on heavy volume yesterday;
we see this as a significant break given the numerous failed attempts since Mar ’08.

Indicators turning bullish.
With the RSI indicator rebounding strongly above the 50% mark and the MACD indicator initiating a bullish crossover yesterday,
they support our view that the upside momentum is building up now.

Initial resistance at $0.705.
The next resistance is at $0.705 (key support-turned-resistance level and upper boundary of 6-month uptrend channel), ahead of
the $0.830 (peaks in Oct ‘07).

Immediate support at $0.620.
Below the immediate $0.620 support, we peg the subsequent support at $0.565 (resistance-turned-support), followed by $0.465 (resistance-turned-support).

 

Pardon my Bahasa, I think you are a star ! haha

 

Hi thomas_low , u r welcomed , n I m not a star , just translate from what the chart is showing . If Epure is to achieve what the analyst had predicted , it must break the resistance at 66 cents with large volume ,because this obstacle was created during the last bull run .

thomas_low      ( Date: 17-Sep-2009 21:40) Posted: Thanks for the update Bintang, you are a star! Bintang      ( Date: 13-Sep-2009 14:10) Posted: Hi  thomas_low , as I had said that the target of Epure might fall short of what analyst given .Last few days it went into correction after hitting new high at 65.5 cents , the pull back was healthy according to its daily n weekly charts . The support may be at 58.5cents which touching the lower trendline of the uptrend channel

 

Thanks for the update Bintang, you are a star!

Bintang      ( Date: 13-Sep-2009 14:10) Posted: Hi  thomas_low , as I had said that the target of Epure might fall short of what analyst given .Last few days it went into correction after hitting new high at 65.5 cents , the pull back was healthy according to its daily n weekly charts . The support may be at 58.5cents which touching the lower trendline of the uptrend channel . thomas_low      ( Date: 12-Sep-2009 22:29) Posted: Bintang, this was your territory, what is the latest?