United Envirotech

United Envirotech: FY12 results in line. Although revenue +9.4% to $85.3m, net profit slipped 34.6% to S$10.5m. But stripping off exceptional items, the drop in core net profit would have fallen 15.0% to $12.5m. Grp also declared a final dividend of 0.3c per share, unchanged from last year. Going forward, mgt continues to remain upbeat about its prospects in the waste-water treatment industry in China; and intends to expand its stable and recurring treatment income by actively seeking suitable TOT/BOT/BOO investment projects in China. OCBC note that house will be speaking with management to get more insights into its expansion plans and will update forecasts accordingly. For now, maintain BUY rating but place our $0.52 fair value under review.