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Projects delays
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Nostradamus
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07-Nov-2006 11:09
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CIMB-GK has cut its rating to "neutral" from "outperform" and reduced its target price to $0.29 from $0.47 previously after the company warned that it will report losses in the third quarter due to delays in the awarding of certain projects. Given the delays, CIMB-GK said it has cut its earnings forecast for United Envirotech by 34-50% for the years 2006 through 2008. Notwithstanding the reduced earnings forecast, CIMB-GK still expects United Envirotech's net profit to rise from $4.9 mln in 2005 to $7 mln this year, $9.5 mln next year and $12.1 mln in 2008. "United Envirotech's share price fell 52% from its high of 0.57 early this year and is now trading at its all-time low. Share price downside is probably limited as, after the long wait, the company may finally be on the verge of securing sizeable contracts that could turn its fortune around," CIMB-GK said. |
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