Renewable Energy: +2.5% at $0.205. Proposed disposal of fastening business to Exec Director, Lam Tak Shing for total consideration of $7.6m. Deal expected to take place by Mar ’11, but subject to certain conditions and sh/h approval. Loss per share is expected to narrow to HK18.3cts from HK56.7cts, based on FYMar10 results…
The fastening biz has been a huge drag on the group, and a successful disposal may drive a re-rating of the stock, as it can then focus solely on the rewewable energy business.
Stock remains a concept play for now. Local houses have Buy ratings with targets ranging btwn $0.39-0.45.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment