United Envirotech CEO, Dr Lin Yucheng (left), with Memstar CEO, Dr Ge Hailin. Stock of both water sector-related companies have been on the rise. NextInsight file photo

Excerpts from this morning's reports....

DBS Vickers initiates coverage of UNITED ENVIROTECH with 69-c target

Analyst: Tan Ai Teng

Source: DBS Vickers

Stable flow of recurring income
• Initiate coverage with BUY, +41% to fully  diluted TP of S$0.69

• Expect earnings breakthrough as recurring income streams gather momentum

• Attractive at 8x/7xPE for 75%/21% PATMI growth in FY14F/15F, industry averages 13x

• Potential upside from acquisitions & expansion; CB dilution can be potential overhang

BUY, TP S$0.69. Our sum-of-parts TP is based on 10x PE for EPC and DCF valuation (8.6% WACC) for treatment. We have also assumed full dilution of the S$136.2m convertible bond to Kholberg Kravis Roberts & Co (KKR).


Recent story: MEMSTAR & UNITED ENVIROTECH: Trade shows good for branding


Analyst: Paul Yong, CFA

China Merchants Holdings (Pacific) CEO Jiang Yanfei.
NextInsight file photo

• Buying 48.1km Jiurui E’way for Rmb675m

• Consideration includes disposal of NZ property business and issue of 72.7m new shares at S$0.84 to the sellers of Jiurui E’way

• Transaction will a) lengthen CMHP’s average concession period b) streamline its focus to expressways only and c) improve liquidity

• Maintain BUY, TP raised to S$1.20.  Factoring in this acquisition, we raise our DCF-based TP to S$1.20, adjusted to S$1.13 if all the convertible bonds were converted to new shares in the company.

Recent story: On acquisition trail: CHINA MERCHANTS, SAPPHIRE CORP

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings2.480-0.020
Best World2.4700.020
Boustead Singapore0.955-0.005
Broadway Ind0.1390.012
China Aviation Oil (S)0.9500.010
China Sunsine0.410-
Delfi Limited0.9250.005
Food Empire1.360-
Fortress Minerals0.320-
Geo Energy Res0.325-0.010
Hong Leong Finance2.490-
Hongkong Land (USD)2.990-0.050
ISDN Holdings0.3100.005
IX Biopharma0.052-
KSH Holdings0.250-
Leader Env0.049-0.001
Ley Choon0.044-0.001
Marco Polo Marine0.0690.003
Mermaid Maritime0.1470.010
Nordic Group0.365-
Oxley Holdings0.090-
REX International0.1460.002
Southern Alliance Mining0.485-
Straco Corp.0.4950.005
Sunpower Group0.220-
The Trendlines0.070-0.002
Totm Technologies0.025-
Uni-Asia Group0.820-
Wilmar Intl3.5400.010
Yangzijiang Shipbldg1.770-0.050

We have 1950 guests and 3 members online

rss_2 NextInsight - Latest News