Friday, September 17, 2010

United Envirotech

United Envirotech: secures RMB 200m contract to build a 50k cubic m/day wastewater treatment plant at Neijiang Xi Industrial Park in Nanjing. Will also form JV with Neijiang authorities to acquire an existing 50k cubic m/day municipal wastewater treatment plant under a BOT arrangement and undertake EPC works to double capacity. Construction to commence immediately and expected to be completed by Sep ’11...

News is positive, given larger size of contract (vs FYMar11 rev of RMB 331m), and boost to recurring income. But gains may be limited, as stock price has already moved ahead following the almost 20% rise in stock price over the past wk, and is just shy of Street targets of $0.52-0.53. Technically, also see resistance at $0.545, vs support at $0.45.

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