Tritech

Tritech: Voyage Research maintains its TP $0.88 and Potential Gem rating on Tritech. Following mgt’s sharing at Voyage’s Chinese seminar two days ago, and a visit to Tritech’s quarry in Msia, Voyage says it is comfortable with the group’s operation and reckons that there is a huge price-value gap, if Tritech’s plans can bear fruits. Tritech has three business divisions namely the engineering, water-related and resources divisions For the engineering division, Tritech has a stable order book of ~$83m, most of which are public sector jobs. Mgt reiterated their underground specialty as an avenue for future growth. For the water division, Tritech is constructing a mega membrane processing plant with five factories in Qingdao. The unit intends to position itself as a one-stop membrane related center, capable of providing engineering works on water and wastewater treatment plants, mgt of treatment plants and production of purified and bottled water. Tritech currently has 16 patented products which they intend to manufacture as the factories get completed. They also recently acquired Anhui Clean Environmental Biotechnology to leapfrog their position in the water treatment business in China. Voyage visited Terratech Resources’ quarry last week and saw the actual extraction of marble from the hills. Tritech has begun production on Hill 2B and Hill 3 and reckons it can expand the capacity by about four fold towards the end of next year. The division recently entered into contracts to sell marble and related products worth ~$18m to China.