Hankore Environment Tech

Hankore Environment Tech: Company announced 1H13 results; Revenues increased 8% y/y to Rmb147m, earnings increased 14% y/y to Rmb37m. EPS increased 12.5% to Rmb0.009. Mgmt stated that volumes in some of their water treatment plants has risen, but did not receive an immediate increase in income because discharge fees at most of its plants were based on minimum guaranteed fees. Nothing was mentioned about the engagement of BaML as its financial advisor to evaluate viable strategic options. On the outlook, mgmt noted that China's water market has become more competitive and mature, with more capital coming in from overseas. Hankore trades at 9.9x P/E and 0.7x P/B.