Friday, April 29, 2016

Citic Envirotech

Citic Envirotech: (S$1.415) 1Q16 weighed by FX loss; growth story still intact as China ups ante
- 1Q16 net profit (+60% to $12.1m) on revenue of $99.5m (+62.5%)
- Achieved only 20% of consensus FY16 estimates due to FX losses of $4.5m
- Beneficiary of stricter China Govt pollution policy
- Sponge city initiative could be a possible opportunity

- Trading at premium of 24.4x forward PE. Street has 2 Buy and 2 Hold with consensus TP of $1.61

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