United Envirotech

United Envirotech: OCBC maintains Buy with $1.03 TP. Note that UEL has recently announced the establishment of a US$300m MTN (medium-term note) programme, where it intends to use the proceeds to either refinance existing borrowings, make investments/acquisitions, and for general working capital and corporate purposes. According to mgt, the main rationale for the MTN programme is to get ready its funding to cater for the still-buoyant waste-water treatment industry in China. Note that UEL still has about S$88m of un-utilized proceeds from its convertible bond issue and share placement to KKR. Since house had recently revised oestimates after its FY13 results, opt not to change anything for now. Hence fair value remains unchanged at $1.03 (still based on 13x FY14F EPS). But do see potential catalyst coming from project wins.