Chairman Frankie Fan (centre) and CFO Ken Wu (extreme left) chatting after the recent AGM with Robert Stone (right), who owns 5.2 million shares of Anwell and is among its top 10 shareholders. File photo by Leong Chan Teik

ANWELL TECHNOLOGIES stock rose 4 cents to touch 48 cents in the first hour of trading today, following news that its subsidiary, Dongguan Anwell Digital Machinery Co Ltd., had secured RMB700 million in capital injection from the municipal government of Dongguan.

The stock has risen 100% since June 16 when it closed at 24 cents, following a series of positive news announcements.

The latest pertains to the development of Anwell’s second thin film solar panel manufacturing base in Dongguan.

With its capital injection, the Dongguan government will become a 19.5% shareholder in Dongguan Anwell.

Significantly, this values Dongguan Anwell at S$680 million (RMB3.6 billion) while the parent company is going for just around S$150 million.

“The entry of the Dongguan Government as a strategic investor in our subsidiary provides strong assurance to our shareholders, customers and other stakeholders on the long term viability of our solar business.

"The premium valuation given to Dongguan Anwell Digital Machinery by the Dongguan Government is a strong vote of confidence in our investment potential and future growth, as we significantly ramp up our production capacity to meet global demand for thin film solar panels,” said Franky Fan, the chairman of Anwell.

At the end of five years following the capital injection, the Dongguan Government has the option of selling its shares in Dongguan Anwell to Anwell at cost plus interest.

In addition to this round of capital injection, Anwell has recently secured a total of RMB1.2 billion in long term funding for the Dongguan plant and expansion of Anwell’s solar panel plant in Anyang from the municipal governments of both cities.

Anwell aims to achieve 1.5GW annual production capacity within 5 years.

Recent stories:

Anwell enters India solar market with US$20m contract

 ANWELL Gets RMB700 M Government Support For Solar Project


A key project of OKP is the current widening of the Central Expressway. Photo: annual report

Infrastructure and civil engineering company OKP Holdings announced a profit after tax attributable to equity holders (net profit) of S$12.1 million for its first half ended 30 June 2011, up 55.6% from previously.

The Group's revenue of S$61.1 million was lower compared to S$73.7 million in the previous corresponding half-year.

Gross profit jumped by of 60.9%, or S$7.5 million, from S$12.4 million previously to S$19.9 million.This was due primarily to cost savings in certain design-and-build construction projects which resulted in better gross profit margins.

Earnings per share (basic) for the half year ended June 2011 was 4.27 cents, an improvement of 40.5% compared to 3.04 cents previously.

It announced also an unchanged interim dividend of 1 cent per share, which works out to a dividend payout ratio of 23.4% based on 1H2011 profits.

Recent story: WORLD PRECISION MACHINERY, CHINA MINZHONG, OKP, ARMARDA: What analysts now say.....

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#4 mardi 2011-07-29 20:10
this counter worth above 50cents. just hold it and accumulate it slowly when pull back.
#3 ryan 2011-07-27 05:18
1)India's contract was $20mn not $200mn
2)What point of economies of scale will profit be more recurrent? How much order do they need to secure to reach that point, do you know? If capacity is 1.5gw, at what production level will the co reach the so called economies of scale? Has managment guided investors about all this?
3)Start up cost have hit bottomline for quite a number of quarters already, as they hv been in solar since 2007/2008 and not 2010. Are we expecting more of this in coming quarters?
4)The so call capital injection is nothing more than a 5 year loan with interest and capital guaranteed as the Dongguan govt has a put option to sell at cost + interest. Therefore unlike the minority shareholders, their stake is secured.
5) By this, Anwell is backloading interest cost 5 years down the road isnt it?
6) You mention abt huge demand for solar panel in china. do you know that under china's 12th, 5 year plan, the govt is only adding 10gw of solar panels and that pertains to all and not just thin film panels. Thats nothing.
#2 Christie 2011-07-26 22:28
ryan, Anwell's solar business started in 2010 with a gradual increase in manufacturing. So, sure have start-up losses. The capacity was increased but it took time to achieve better economies of scale. In terms of marketing, this year got results. Anwell has announced a US$200 m order from India. ryan, this is a long-term bet on a huge demand for solar panels in China. Anwell needs to do manufacturing on a larger scale before profitability kicks in. At end of day, there is a price for every thing -- at this 48 cent level, Anwell is being viewed as a high-risk high return stock. U may wish to invest in SingTel or ST Engineering or ComfortDelgro instead.
#1 ryan 2011-07-26 11:33
Anwell: the solar story in Anwell is not new. We have yet to see steady earnings coming from their solar operations. Every qtr when earnings are disclosed , the co keeps getting queried by SGX. All fanfare , I seriously question the co's execution. It's time for shareholders to say : 'Show me the money!'

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