Tritech

Tritech: Voyage Research (previously SIAS) rates Tritech as a potential gem, with TP $0.88. Says the stock caught its attention following a recent share placement and approval from SGX for the proposed restructuring and spin-off of its limestone business (Terratech Resources). The house estimates Tritech’s stake in the Msia quarry is ~$234m, or 60.8¢ per share (on a diluted basis), which equates to ~94% of its current share price. As a background, Tritech ventured into the resource business back in Dec ’10, where it acquired 93% of a quarry in Kelantan. The marble in the quarry was discovered to be predominantly Grade A, able to fetch high selling prices of ~$900/mt. The co has since raised funds from investors to develop the asset further and intends to list Terratech Resources in HK. Notes the group also has exciting plans to grow the water and engineering businesses. For the water segment, Tritech has a newly constructed membrane production base in Qingdao and acquired the EPC division of Moya, while the engineering division has a steady order book and intends to expand its presence in the underground space.