Wednesday, May 19, 2010

United Envirotech

United Envirotech announced its FY10 net profit surged by 305.4% YoY to S$14.9m while revenue jumped 61.3% to S$69.1m. The strong performance was mainly driven by higher contributions from both its engineering and wastewater treatment businesses. Due to its strong operating casfh flow, the company has proposed a final div of 0.3c and a special div of 0.2c, which implies total payout ratio of 14.7%.

Going fwd, the co expects its wastewater treatment capacity to double in the next 2 yrs, which will enable United Env to take on bigger projects. Based on Bloomberg estiamtes, the stock trades at less than 6x FY11 P/E (Mar YE).

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