Friday, June 18, 2010

*United Envirotech*

United Envirotech has successfully secured credit facilities of up to RMB3bn for 3yrs from China Merchants Bank (CMB) to finance its water-related projects. The credit facilities will help it secure more build-operate-transfer (BOT) and transfer-operate-transfer (TOT) projects in China. Currently, it has a portfolio of BOT and TOT projects with a total designed capacity of 665,000 m3/day, of which 305,000 m3/day capacity is up & running and generated an NPAT of S$7m for FY10 (Mar YE).

The stocks now trades at only 6.3x FY11 and 4.6x FY12 PER, a steep discount to Sound Global. United Env has also announced its intention to do a dual-listing in Taiwan. It has appointed Polaris Securities Co. Ltd to provide advice on the TDR issue and act as the lead underwriter. We understand the proposed issue size will constitute approximately 10% of the existing issued share capital.

No comments:

Post a Comment