United Envirotech

United Envirotech: recorded a 38% jump in revenue to $44.1m for 1QFYMar14, mainly due to a 23% yoy increase in revenue from the engineering business segment to $31.2m, and a 90% yoy increase in the recurring water treatment business segment to $12.9m. Net profit however, dipped 3% to $5.7m, due to more rapid rise in employee costs (more staff hired) and other operating expenses incurred for the operation and maintenance of the new treatment plants acquired during the past yr and increase in share option expense from $0.2m to $1.3m. Mgt intends to continue to grow its recurring treatment income, and focus on securing more industrial wastewater treatment projects in China. Notes China is consistently tightening its effluent discharge standards, and the group foresees higher demand for its advance membrane technologies to upgrade existing wastewater plants to meet the more stringent discharge standards. At $0.945, the stock trades at 24.6x annualized 1QFY14 P/E, 2x P/B.