CNA Group

CNA Group: Voyage Research has a snap report on the counter with a potential price of $0.30. Note that CNA Group recently ventured into the construction of smart connected cities in China with its JV partner Tech Hi Xiang Yu Space Technology. The joint entity will focus on the provision of internet services and utilities data center, which will form the basic infrastructure of the city and be capable of generating recurring cash flow. The rising internet penetration rate and existing disordered ICT planning are pushing for a better network infrastructure. In a single city, house estimate the project to generate about Rmb200m profit before tax a year. On the side note, CNA currently has an order book of $74.2m (excluding the Thailand projects and smart city project) and income recurring projects relating to terminal equipment solution with the Laos Airport Authority and waste water treatment project in China. House also believe that the company is eyeing the ICT project in Changi Airport Terminal 4, which is around S$50-100m in size. As such, optimistic about CNA’s 2014 outlook, with projected revenue of $120m and profit of $11m. While house optimistic about the company’s outlook, the China smart city project is only in its preliminary phase with no concrete project on hand. Also, the income from the terminal equipment solution and waste water project businesses has yet to trickle in.