Tuesday, February 5, 2013

United Envirotech

United Envirotech: Strong set of 3Q13 results, which was at the high end of estiamtes. Rev at $52.3m, +159.4% yoy and net profit at $8.5m, +350% yoy. Result brings 9M13 rev to $138.2m, +108.9% yoy and net profit to $22.5m, + 145.7% yoy. Strong Rev was attributed to a 202.8% rise in engineering rev to $43.0m and a 57.6% rise in treatment rev to $9.3m in the qtr. Going forward, grp remains very confident of outlook, buoyed by the positive govt policy and growing demand in China for water treatment, & will continue to expand its recurring income by investing more water treatment projects in China. Expect 4Q13 earnings to continue growing and make FY13 a success. With the upcoming US$40m follow-on investment from KKR, grp is is well positioned to continue growth and scale new heights in China’s water treatment space. Ratings as follows: OCBC maintains Buy with $0.67 TP under review, pending discussion with mgt.

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