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ChinaEnv Set To Rebound TP 0.70
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kiasiDBT
Veteran |
03-Nov-2010 09:25
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From SIAS: Increase Exposure: Intrinsic Value 0.37 Increase Exposure:-The current price of the stock is significantly lower than the underlying fundamental value. Readers can consider increasing their exposure in their portfolio to a higher level. China Environment Ltd (CENV) announced yesterday that it intends to seek a dual primary listing on the main board of the Hong Kong Stock Exchange, together with a public offering of new shares. Key Observations: A move to unlock shareholder value. CENV is currently trading at 13.0x T12 PER and 1.9x current P/BV. CENV’s China listed peers trade at an average T12 PER of 103.0x and P/BV of 4.8x. CENV’s closest peer in our opinion is Fujian Longking Co. Ltd. (Longking) - both of which are located in Longyan. Longking trades at 29.3x T12 PER in Shanghai. However, Longking’s T12 ROE is only 12.8%, while CENV’s ROE is in excess of 20% per annum. Hence, it is not inconceivable to expect CENV’s shares to be well received by Hong Kong investors. Scenario analysis suggests considerable trading upside. Assuming that CENV lists 20% more shares in Hong Kong and that these shares trade at a subjective PER of 20x (on FY10F EPS adjusted for new shares of 2.24 S cents), we are looking at a potential share price of S$0.450 which is 76.4% higher than its last traded price of S$0.255. The upside is capped to 31.3% when a lower PER of 15x is applied. This is merely a scenario analysis and does not reflect our valuation of CENV’s business fundamentals. Fund raising CENV inching towards mega-contract? Additional funds will also provide CENV with the financial ammunition to take on larger projects. The company has previously declared its intention to produce De-NOx and desulphurization modules on top of its de-dusting solutions, which will require more working capital, but provide higher returns. Dual listing may take some time. CENV still has to seek the approval of both exchanges before the dual listing can proceed. As there has been no other material developments since our last results update in August, we maintain our valuation of CENV, which is due to release its 3Q FY10 results soon. China Environment Ltd (CENV) announced yesterday that it intends to seek a dual primary listing on the main board of the Hong Kong Stock Exchange, together with a public offering of new shares. Key Observations: A move to unlock shareholder value. CENV is currently trading at 13.0x T12 PER and 1.9x current P/BV. CENV’s China listed peers trade at an average T12 PER of 103.0x and P/BV of 4.8x. CENV’s closest peer in our opinion is Fujian Longking Co. Ltd. (Longking) - both of which are located in Longyan. Longking trades at 29.3x T12 PER in Shanghai. However, Longking’s T12 ROE is only 12.8%, while CENV’s ROE is in excess of 20% per annum. Hence, it is not inconceivable to expect CENV’s shares to be well received by Hong Kong investors. Scenario analysis suggests considerable trading upside. Assuming that CENV lists 20% more shares in Hong Kong and that these shares trade at a subjective PER of 20x (on FY10F EPS adjusted for new shares of 2.24 S cents), we are looking at a potential share price of S$0.450 which is 76.4% higher than its last traded price of S$0.255. The upside is capped to 31.3% when a lower PER of 15x is applied. This is merely a scenario analysis and does not reflect our valuation of CENV’s business fundamentals. Fund raising CENV inching towards mega-contract? Additional funds will also provide CENV with the financial ammunition to take on larger projects. The company has previously declared its intention to produce De-NOx and desulphurization modules on top of its de-dusting solutions, which will require more working capital, but provide higher returns. Dual listing may take some time. CENV still has to seek the approval of both exchanges before the dual listing can proceed. As there has been no other material developments since our last results update in August, we maintain our valuation of CENV, which is due to release its 3Q FY10 results soon. Heading to Hong Kong for Dual Listing China Environment Ltd (CENV) announced yesterday that it intends to seek a dual primary listing on the main board of the Hong Kong Stock Exchange, together with a public offering of new shares. Key Observations: A move to unlock shareholder value. CENV is currently trading at 13.0x T12 PER and 1.9x current P/BV. CENV’s China listed peers trade at an average T12 PER of 103.0x and P/BV of 4.8x. CENV’s closest peer in our opinion is Fujian Longking Co. Ltd. (Longking) - both of which are located in Longyan. Longking trades at 29.3x T12 PER in Shanghai. However, Longking’s T12 ROE is only 12.8%, while CENV’s ROE is in excess of 20% per annum. Hence, it is not inconceivable to expect CENV’s shares to be well received by Hong Kong investors. Scenario analysis suggests considerable trading upside. Assuming that CENV lists 20% more shares in Hong Kong and that these shares trade at a subjective PER of 20x (on FY10F EPS adjusted for new shares of 2.24 S cents), we are looking at a potential share price of S$0.450 which is 76.4% higher than its last traded price of S$0.255. The upside is capped to 31.3% when a lower PER of 15x is applied. This is merely a scenario analysis and does not reflect our valuation of CENV’s business fundamentals. Fund raising CENV inching towards mega-contract? Additional funds will also provide CENV with the financial ammunition to take on larger projects. The company has previously declared its intention to produce De-NOx and desulphurization modules on top of its de-dusting solutions, which will require more working capital, but provide higher returns. Dual listing may take some time. CENV still has to seek the approval of both exchanges before the dual listing can proceed. As there has been no other material developments since our last results update in August, we maintain our valuation of CENV, which is due to release its 3Q FY10 results soon. |
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Evermeet
Member |
02-Nov-2010 19:43
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Hm, when's their 3Q results coming out? |
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freeme
Elite |
02-Nov-2010 15:28
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i tink they will start to move after their 3q report
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alexchia01
Elite |
02-Nov-2010 15:24
Yells: "Catch The Stars And Ride With Them" |
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Yes. They announced dual listing in HKSE. I expect price to moves up as they take steps towards this goal.
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freeme
Elite |
02-Nov-2010 15:14
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u didnt add yest they announce dual listing!
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alexchia01
Elite |
02-Nov-2010 14:53
Yells: "Catch The Stars And Ride With Them" |
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Today is a Good Day to Buy ChinaEnv. Business: Provider of Waste Gas Treatment Systems; Designs and Constructs Waste Gas Treatment Systems; In China Now Trading at $0.255 1. In a Uptrend Channel with potential High of $0.290. 2. Just Bounded Off its Support Level of $0.240. A Good Entry Time. 3. Price just Crossed MA30, into Bullish Territory. 4. MACD Lines are about to Cross and Move Upwards. 5. Stochastic Lines already Crossed and Leaving the Oversold Region. Still a Good Time to Buy. 6. Directors and Major Shareholders has been Buying Up the Company Shares this year. A Sign of Confidence on the company. 7. STI Turn Bullish yesterday. This is the Best time to start Buying. Stop-Loss Below $0.250. Target Price: $0.290. More on my Blog at Alex Trades. This is just my personal analysis. You invest at your own risk. Good luck to all. |
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kiasiDBT
Veteran |
01-Nov-2010 10:21
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Bump Up | ||||
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jack31
Member |
29-Oct-2010 12:20
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yeah.. same thoughts.. probably by next 2 weeks big rally liao.. $1.00 hahaha -_-"
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kiasiDBT
Veteran |
29-Oct-2010 12:12
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AI LAI CHIONG LIOW ARH!!!! 
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kiasiDBT
Veteran |
28-Oct-2010 08:04
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China Environment rated 'buy' by DMG DMG & Partners Securities in an Oct 22 research report says: "Following the reverse takeover of Gates Electronics, the former electronics components trader is now known as China Environment which is based in Longyan Economic Development District, China. "The company has since ventured into manufacturing of industrial waste gas equipments (IWE) – a market segment which is set to grow in the next few years driven by government policies and regulations. We believe China Environment is well-positioned to seize the industry-wide growth opportunity with its range of products, particularly the newly patented Electrostatic Lentoid Precipitator (ESLP). In addition, China Environment is considering on venturing into other Asian countries where profitability could be higher. "Given the potential, we value China Environment at target price of 32 cents based on blended FY10F/FY11F PATMI, which is a 67% discount to HKEx-listed peers’ P/E. BUY (initiating coverage)." |
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kiasiDBT
Veteran |
25-Oct-2010 15:39
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Quickly board this rocket b4 it takes off.... engine warming up now.... may take off any moment...
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kiasiDBT
Veteran |
25-Oct-2010 00:14
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SIAS maintains ‘Increase Exposure’ rating on China Environment n DMG Buy call SIAS maintains ‘Increase Exposure’ rating on China Environment with intrinsic value of 37 cents Analyst: Liu Jinshu We visited China Environment Ltd’s headquarters at Longyan City, Fujian Province. We saw firsthand the complexity of building waste gas treatment systems, which involves design, steel fabrication, electronic and electrical engineering, construction and testing. A typical gas treatment solution consists of both mechanical and electronic/electrical sub-modules. As the company produces both parts itself, it enjoys a cost advantage over peers that have to make up for technical capabilities they do not posses by outsourcing to contractors. It has also been allocated a 200,000 square meter plot of land that it has yet to purchase. This allotment gives it the option to expand and take on more projects in the future. Value Catalysts China Environment is currently in talks with a partner to build a system that comprises of dust, NOx and sulphur removal modules. To finance such large-scale projects, it is considering various funding options, which may include dual listing plans. We see the realization of these events as value catalysts. In the long run, it intends to expand its capabilities to include technologies for water and noise pollution. Given China’s growing market for environmental protection equipment, we maintain our bullish outlook on China Environment. Acid rain distribtion in China is most severe where most heavy industries are located. Source: Ministry of Environmental Protection.DMG-OSK initiates coverage on China Environment with BUY, target price 32 cts Analysts: Terence Wong and Tan Chee How China Environment manufactures industrial waste gas equipments (IWE) – a market segment which is set to grow in the next few years driven by government policies and regulations. We believe China Environment is well-positioned to seize the industry-wide growth opportunity with its range of products, particularly the newly patented Electrostatic Lentoid Precipitator (ESLP). In addition, China Environment is considering on venturing into other Asian countries where profitability could be higher. Given the potential, we value China Environment at TP of S$0.320 based on blended FY10F/FY11F PATMI, which is a 67% discount to HKEx-listed peers’ P/E. According to Frost and Sullivan, the IWE maker market size is slated to grow at 15% CAGR between 2009 and 2013 to hit US$9.6b. It is expanding its product offerings to include Desulphurification system, DeNOx system, and Electrostatic Lentoid Precipitator. In particular, ESLP shows great potential as preliminary findings illustrate that the product has better capability and is cheaper to build compared to ESP. Price war the biggest risk Key risks to our call on China Environment are: 1) increasing competition within the IWE manufacturing sector, and 2) consistently high receivable days which will drain the cash as its business expands. |
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kiasiDBT
Veteran |
18-Oct-2010 15:42
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It's just been approved as high-technology company, which means tax rate reduced from 25% to 15%. This will translate to more than 12% increase in profit. " ...An environmental services provider like CENV can also be categorised as a high-technology company, which enjoys tax breaks. The company’s application has been approved, which means it is now taxed at 15%, down from the 25% rate of other corporates in China...." http://www.cfoinnovation.com/content/singapore-auditor-china-cfo |
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sarsar
Senior |
22-Sep-2010 10:15
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Another good news for China Env http://www.178178.cc/archives/85/201009/00079310.html Good luck to all vested. |
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inewbie
Member |
20-Sep-2010 14:51
Yells: "if you want the rainbow, you gotta go through the rain!" |
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wow, gone down liao...dun need think liao. can get stgt at 25 now...
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inewbie
Member |
20-Sep-2010 14:50
Yells: "if you want the rainbow, you gotta go through the rain!" |
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yay, i got it!! reri hope it will be a gd take n hlp me to incr my fortune (dreaming big again....)
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inewbie
Member |
20-Sep-2010 14:46
Yells: "if you want the rainbow, you gotta go through the rain!" |
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i still trying my luck in my q put in this morning :( good luck!
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CBClow
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20-Sep-2010 14:31
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Should I buy now at 0.255 | ||||
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eeming45
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20-Sep-2010 13:06
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at last this baby proves to stand out among the s-chps. sob sob .. i m still holding my paper loss at 37c. looking forward to he Tp price. mayb should load up more to accumulate.. congraulation t o it dual listing in hk ... | ||||
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kiasiDBT
Veteran |
20-Sep-2010 10:54
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Juz need to break above 26.5... and it will chiong even higher. | ||||
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