United Envirotech: CIMB initiates with Add, with TP of $2.01.
The house expects United Envirotech to deliver a FY15-20 EPS CAGR of 28% on WWT portfolio expansion and increasing demand for its WWT EPC services and membrane products. Potential catalysts include accretive M&As and stronger project wins.
Broadly, United Envirotech is well positioned to capitalize on the policy tailwinds for industrial WWT. The Water 10 plan recently.
Also with Citic assuming control, United Envirotech can leverage its parents nationwide business network for expansion. Having Citic as its parent also allows them to lower financial costs.
Balance sheet is strong, with 24% net gearing, one of the lowest among peers. This provides much scope for debt financed M&A.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment