United Envirotech

United Envirotech: OCBC maintains Buy and raises TP to $0.50 from $0.40. Note of more inroads into Shandong, as grp just signed a new agreement for a 30-year 20k m3/day BOT industrial waste-water project in Xintai City, Shandong, for $20m, with construction to start immediately and complete within 15 mths. Cite also an update on the upgrading works of 3 industrial waste-water plants in Changyi City, Shandong, where UEL expects the works to complete by end-2012; existing tariffs to also improve once higher discharge standard is reached. In light of the latest contract win and potentially more contract wins in the pipeline (estimate that UEL has the financial capacity to finance up to $245m worth of projects), house bumping up FY13 revenue forecast by 13% and earnings by 27%.