United Envirotech

United Envirotech: Group has just secured a RMB100m BOT (Build, Operate, Transfer) contract in Shandong Province, China; the 30k m3/day underground waste-water treatment plant is a follow-up to its earlier 100k m3/day drinking water project secured in Yantai last year. Despite the latest contract win, house note that it will only meet around 20% of its new contract wins expected this year; hence, opt to leave our forecasts unchanged for now. Instead, could see a large dilution from the move to issue shares to buy over the membrane operations of Memstar Technology Ltd. As such, also more inclined to maintain HOLD rating, although the current upside to its unchanged $0.975 fair value (13x FY14F) is around 8%.