United Envirotech

United Envirotech: OCBC says the co is likely to see its growth trend continuing in 2HFY13 after a strong 1H showing (revenue +87% to $86m, net profit +93% to $14m), buoyed by still growing demand for membrane-based water and waste water treatment services in China. Says mgt remains keen to increase the contribution from the more stable and recurring Treatment segment (+74% yoy and +46% qoq in 2QFY13 to $9.9m), given the numerous upgrades that the co is currently making to its existing treatment plants. Mgt also intends to focus on looking for good existing TOT projects where it can inject its membrane technology and mgt know-how to increase existing cash flows. Its geographical focus will likely continue to be in Shandong, Jiangsu and Liaoning. OCBC reiterates Buy with TP $0.67, based on 12.5x blended FY13/14e P/E.