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Ma Ong Kee, Huang Min raise stakes in China Enviro
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kiasiDBT
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11-Jul-2010 23:54
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freeme
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24-Jun-2010 11:13
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nice news to read about ;) |
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kiasiDBT
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24-Jun-2010 09:58
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CHINA ENVIRONMENT: Grabbing bigger piece of 30 bln yuan annual mkt Written by Andrew Vanburen (China Correspondent) Thursday, 24 June 2010 CHINA ENVIRONMENT shares shot up by 4.5 cents, or 22.5%, to close at 24.5 cents yesterday. Volume traded was a massive 29.9 million shares. The Singapore-listed company, as several fund managers and I learnt on a recent visit, is benefiting from a massive cleanup campaign underway in China. Chairman and CEO Huang Min has given a vote of confidence to the future prospects of China Environment by way of his recent share-buying activities through a vehicle, Prosper Big International. Over the past three months, Prosper has been buying the stock on the way down. China Environment's market cap: 121.5 mln sgd; 52-wk range: 0.16-0.77 sgd THE MASSIVE cleanup campaign underway in the world's most populous country is giving China Environment Ltd (SGX: CENV) plenty of reason to smile. Already, some 1.4 trln yuan has been earmarked for investment in China's environmental protection program during the 11th Five Year Plan ending December 2010, up 60% from the original plan. And the manufacturer and installer of waste gas treatment systems is getting a larger share of the 30 bln yuan market for such products in China, with the Singapore-listed firm's first quarter revenue rising 22.3% year-on-year to 130.4 mln yuan. However, due to recent volatility in steel prices – which constitute over 70% of the firm's total costs – corresponding net profit was 22.1 mln yuan versus 24.6 mln a year earlier. To this end, management is committed to adjusting its steel procurement regime, which is currently a mix of both spot and contract orders. However, with gross margins in the most recent quarter still very high by industry standards at over 30%, China Environment is very sanguine on its performance going forward. "Our order book is pretty much full until September of this year," said Mr. Wu Jida, CEO of wholly-owned subsidiary Fujian Dongyuan Environmental Protection Co Ltd. Cleaning Up: Mr. Wu Jida, CEO of Fujian Dongyuan, wholly-owned unit of China Environment. Photo: Andrew Vanburen He recently met with a group of several Greater China fund managers on a trip to Fujian-based listed companies organized by Aries Consulting and Financial PR. It was clear to our group that the company's fortunes were closely tied to steel prices, as the equipment that wrapped around the nearby cement plants along our tour were seemingly made of little else but steel. “Our net profit fell in the first quarter due to a higher gross profit margin of 35.0% in the first quarter of 2009 against 30.1% for the most recent quarter as steel prices were then lower, resulting in lower steel purchase prices than those quoted in the second quarter of 2008 tender projects,” the company said. Therefore, Mr. Wu said it was critical for the company to fine tune its steel purchasing strategy to keep margins as healthy as possible. And upper management was very upbeat on margin health going forward. Cleaning up with the Cleanup On Board: This Lantian cement plant in Longyan, Fujian is now compliant with emissions standards thanks to this waste gas treatment system from China Environment. Photo: Andrew Vanburen Prior to January 2004, the maximum allowable per company in the PRC was 200-300 mg/cubic meter of particulates in factory emissions, which was then lowered to 50 at the time. It is anticipated that in the near future, the PRC government emissions standard maximum will be further reduced to 30 mg/cubic meter, which the company says will force potentially thousands of companies to come knocking on its doors (and the gates of its competitors) for the best products at the best price. The stricter emissions regulations which might probably be laid down this year by the PRC government will mean that a majority of emitters in the country will soon be noncompliant, and they can either hope for friendly inspectors to grace their premises, or invest in better emissions control systems in the short term. China Environment is more than happy to help them if they decide on the latter strategy, and help them meet the tougher requirements. “Indeed, coal-fired power plants and cement plants constitute our two biggest customers,” Mr. Wu said. And this made perfect sense given that the two industries were two of the country’s most egregious air polluters. Of the nearly 500 mln yuan in orders the company realized last year, 72% came from power plants and another 16% from cement factories. Chemical plants, paper mills and mining operations rounded out the list of revenue contributors for last year. China will build 315 power plants with capacity between 200-600MW this year, and will have over 3,000 such plants by 2015, according to Finansa. This translates into a potential windfall for China Environment as between 2009 and 2015, the market size for the firm’s electrostatic precipitator products is expected to grow at a CAGR of 19% to 38 bln yuan. China Environment had no plan to aggressively seek other industry clients as power plants were proving to be very reliable partners. Generating Sales: Power plants make up the lion's share of China Environment's revenue,with 3,000 potential clients in the sector seen by 2015 As proof of this trend, within a short span in April, the company locked in three new contracts amounting to 76.2 mln yuan to design, construct and install waste gas treatment systems for thermal power projects in the northern Chinese provinces of Hebei and Jilin, as well as one in Mongolia. “Our production is order based, so if there are no pending orders, then there is no production underway. That means we have basically zero inventory costs,” Mr. Wu added. And the relative quiet at the company’s core development and corporate facilities in the city of Longyan in central Fujian province was understandably quiet that day we toured the plant with the group of fund managers. “We almost always erect temporary ‘plants’ at installation sites be they power stations or cement companies, then we install the equipment and then take everything down again after the project is completed. That’s another reason why you won’t see much in the way of dormitories here, because our workers are all temporarily housed on-site. “And our average time from order contract signing to completion is 6-9 months,” he said. China Environment also counted among many of it clients state-owned enterprises, who were less likely to default on a payment or cancel a project mid-stream do to a potentially bearish earnings season. “Also, whether public or private, SOEs or otherwise, there are few polluting firms if any that are big and broad enough to have their own in-house capability to install, let alone produce, their own compliant waste gas control systems, so all industries are potential clients of ours.” Commercial Carousel Clear Skies Ahead: China Environment executives recently guiding Greater China fund managers around their Fujian province facilities. The company helps clients far exceed emissions standards. Photo: Andrew Vanburen China Environment produced several types of emissions control systems including static electricity dust removal, bag-style dust removal, combined static-bag dust removal, ash pneumatic conveyance systems, desulphurization systems and denitration systems. In addition to dust removal, it is making inroads into desulphurization and removal of nitrogen oxides (De-Nox). It sees tremendous order potential for its flagship products – the Electrostatic Precipitator (ESP) and its self-developed Electrostatic Lentoid Precipitator (ESLP), the intellectual rights to which it owns. Of these, all required regular maintenance and replacement, but none more so than the top-selling bag-style systems, which had a lifespan of some 2-3 year before replacement was not only advisable, but state-mandated. And how did the company’s equipment stack up when it came to using less electricity nationwide and correspondingly, cutting emissions and helping clean up China’s skies? “Actually, our static electricity dust removal systems themselves don’t use a lot of electricity,” Mr. Wu said. It has established sales and marketing networks in major cities across the PRC, including Beijing, Nanjing, Nanning, Wuhan and Zhengzhou, and intends to recruit additional personnel to expand the domestic network. See also recent story on company chairman's big share purchases: INSIDER BUYING |
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tea444u
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23-Jun-2010 20:36
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can still buy at this price? |
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kiasiDBT
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23-Jun-2010 10:54
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CHEONG ARHHHHHHHHHHHHH............ 
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kiasiDBT
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22-Jun-2010 11:32
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http://www.theedgesingapore.com/markets/insider-moves/16953-ma-ong-kee-huang-min-raise-stakes-in-china-environment.html Written by Angeline Cheong Friday, 18 June 2010 14:55 Share this Digg Del.icio.us StumbleUpon Netscape Yahoo Technorati Googlize this FacebookExport PDFPrintE-mail Ma Ong Kee, a strategic investor behind the back-door listing of Fujian- based China Environment, acquired 831,000 shares on June 10, raising his stake from 24.96% to 25.09%. On June 9, CEO Huang Min acquired 1.02 million shares at 19.5 cents each, raising his stake to 38.06%, from 37.9%. Ma, who has investments in Metax Engineering and ecoWise Holdings, engineered the deal to inject Fujian Dongyuan, a company that designs and installs electrostatic precipitators (ESPs), baghouses and hybrid dust collectors into a shell listed company known as Gates Electronics, which was later renamed China Environment. Currently, 90% of China Environment’s customers are from the power generation industry. In April, China Environment received the industrial certification to design and construct ESP for 600MW thermal power stations. Previously, it was allowed to take on only projects from 200MW and 300MW thermal power stations. Finansa Securities (Hong Kong) believes the ability to take on larger projects bodes well for China Environment as the country is expected to build 315 such plants this year and more than 3,000 plants by 2015. For the quarter ended March 31, China Environment reported a 22% increase in revenues to RMB130.4 million ($26.6 million), owing to stronger demand for dust collectors. However, earnings fell 10% to RMB22 million, owing to rising steel prices and higher operating expenses. At Biosensors International Group, chief technology officer John Shulze sold 764,000 shares, reducing his stake to 5.38%, from 5.45%. Schulze later reduced his stake to 2.69% on June 15. According to a filing with the Singapore Exchange, it was a result of a separation of assets, owing to a dissolution of marriate through a court order. Last month, after the company reported a record set of results, Robert Michael Kleine said he would step down as CEO of the medical device manufacturer on July 1, although he will continue as a non-executive director to provide support to the company. He was appointed in January 2008 and has been instrumental in the strong sales of the BioMatrix drugeluting stent, which helped turn the company around. Jeffrey Jump, managing director and senior vice-president of global sales and marketing, will be appointed CEO. For the quarter ended March 31, Biosensors reported a 47% rise in revenues to US$32.8 million ($45.7 million) and a surge in earnings to US$9 million, from US$379,000 previously. Kleine says, “Increased sales of our BioMatrix drug-eluting stent were driven by a combination of organic growth in geographies where the product was already approved, and planned introductions into new markets, such as France and South Korea, as we received additional regulatory approvals.” For FY2011, the company expects product revenue to range from US$135 million to US$145 million. In another development, substantial shareholder Lim Eng Hock, better known as billionaire investor Peter Lim, continued to buy up more shares at Healthway Medical Corp. On June 10, Lim acquired 21.58 million shares, increasing his stake from 6.03% to 7.21%. Lim had acquired 5.1 million shares on June 3 and 14.6 million shares on June 2. Healthway Medical runs one of the largest networks of private medical centres in Singapore, offering primary healthcare, dental and specialist services. For the quarter ended March 31, Healthway reported a 6.3% drop in revenue to $22.2 million. DMG says this was largely due to the departure of some paediatric and orthopaedic specialists, as patients tend to follow their doctors. Earnings fell 64% to $1.36 million, owing to higher pre-operating expenses incurred for new clinics. As part of its ongoing expansion, Healthway is building its flagship specialist medical centre at Triple- One Somerset, which is estimated to cost $40 million. In China, the group plans to open six new medical centres in Shanghai this year. |
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kiasiDBT
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22-Jun-2010 11:29
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http://www.theedgesingapore.com/markets/insider-moves/16953-ma-ong-kee-huang-min-raise-stakes-in-china-environment.html |
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