CITIC Envirotech (formerly: United Envirotech)

[CityFarmer]

DBS Group Research 5 Aug report...

Growing a little slower
• Sales in line, but net profit fell short due to lower
Treatment margin
• Capacity utilization on track to meet full year
expectation, but EPC wins are behind target
• Cut FY14/15F earnings by 13%/15% to reflect lower
Treatment margin and EPC revenues
• Maintain HOLD rating, nudged down TP to S$0.90

http://remisiers.org/cms_images/research...irTech.pdf

[mkmk]

http://infopub.sgx.com/FileOpen/UE.Xixia...eID=260410

United Envirotech Ltd Expands Its Presence in Shandong China with a RMB 105 Million Transfer-Expand-Operate-Transfer Contract Win

(not vested)

[CityFarmer]

One step closer to completion on the UE/MemstarT deal...

(vested in MemstarT)

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The Company had announced that up to 200,055,550 new ordinary shares in the capital of the
Company would be issued to the Vendor as part payment of the Purchase Consideration (the
“Consideration Shares”).

Further to the Announcements, the Board wishes to announce that the Company has, on 9
January 2014, received the approval in-principle from the SGX-ST (the “Approval In-
Principle”) in respect of the Transaction and the listing of and quotation for the Consideration
Shares on the Official List of the SGX-ST, subject to the following conditions being fulfilled:-
(a) compliance with SGX-ST’s listing requirements and guidelines;
(b) Shareholders’ approval being obtained for the Transaction and the issuance of the
Consideration Shares; and
© the completion of the Transaction will not result in a change of control of the Company.

Ref: http://infopub.sgx.com/FileOpen/UE.Annt....eID=270390

[CityFarmer]

The company raise capital by debt of $35 mil, fixed rate of 7.25%. The purpose of the debt is for the following, according to announcement.

"The net proceeds arising from the issue of the Further Tap Notes (after deducting issue expenses)
will be used by the Company and/or its subsidiaries for refinancing of existing borrowings, making
investments and/or acquisitions, general working capital and corporate purposes"

Ref: http://infopub.sgx.com/FileOpen/UE.Annt....eID=273390

[CityFarmer]

OCBC updated report on the company. The FVs of various reports has followed the market price, and updated accordingly

IMO, the company look promising, with improving gross margin on its project...

(not vested)

United Envirotech: More in store for FY15
 Outlook remains buoyant
 Memstar deal gets OK
 But limited upside to new S$1.30 FV
Flat 3QFY14 earnings growth
United Envirotech Ltd (UEL) posted 3QFY14 revenue of S$64.3m, up 23% YoY and 24% QoQ, driven mainly by the increase in water treatment revenue of S$10.9m (+117% YoY, +30% QoQ); this also led to an income of gross margin to 47.0% versus 46.2% in 2QFY14 and 42.4% in 3QFY12. However, due to higher depreciation and interest charges, net profit eased 1% YoY (+17.8% QoQ) to S$8.4m. 9MFY14 revenue grew 16% to S$160.3m, meeting 82% of our full-year forecast, while net profit slipped 5.3% to S$21.3m, or just 62% of our FY14 estimate.

Memstar acquisition is “Go”
Separately, the acquisition of Memstar Technology’s (unrated) membrane operations has gotten the nod from both companies’ shareholders. While UEL could start consolidating the purchase from as early as 4QFY14, any meaningful impact is likely to be felt from 1QFY15. We understand that UEL is already looking to go into third party membrane sales (currently Memstar only uses ~50% of its total capacity, mainly for UEL’s use), and it believes it can achieve up to S$40m worth of these sales in FY15.

Outlook remains upbeat
Going forward, management continues to maintain a fairly upbeat outlook for the water industry in China. To underscore its point, UEL recently announced a 70:30 JV with Binjiang MC to acquire a 15k m3/day wastewater treatment plant for RMB150m. We understand that UEL is also in talks to secure more EPC projects – it is currently sitting on an order book of around S$250m, which it will deliver within a year.

Not that cheap now
To reflect the latest development, we bump up our FY15 revenue estimate by 20% but pare earnings by 2%. We also raise our valuation peg from 15x to 20x FY15F EPS, thus improving our fair value from S$1.00 to S$1.30. But given the limited upside, we maintain our HOLD rating. (Carey Wong)

Ref: http://remisiers.org/cms_images/research..._Pulse.pdf

[CityFarmer]

The company is the M&A target this round. Market consolidation within waste water treatment sector is happening, even within SGX...

(not vested)

http://infopub.sgx.com/FileOpen/UE.Holdi...eID=303814

[greengiraffe]

http://www.businesstimes.com.sg/premium/...m-20140814

PUBLISHED AUGUST 14, 2014
United Envirotech's Q1 profit surges to S$22.5m
BYMINDY TAN
tanmindy@sph.com.sg @MindyTanBT

UNITED Envirotech's net profit for the first quarter ended June rose from S$5.7 million to S$22.5 million, as the water treatment plant's revenue rose 50.5 per cent, from S$44.1 million to S$66.3 million
The increase was mainly due to an increase in its water treatment business which jumped 58.9 per cent from S$12.9 million to S$20.5 million; the engineering business which jumped 23.1 per cent from S$7.2 million to S$31.2 million; and the external membrane sale of S$7.4 million.
Basic earnings per share was 2.62 cents as at end June this year, compared with 0.96 cents a year ago.
Net asset value per ordinary share on the group level was 68.32 cents as at end June compared with 53.73 cents as at end March. It was 54.13 cents and 34.21 cents, respectively, on the company level.

[greengiraffe]

http://www.businesstimes.com.sg/companie...-to-s1054m

United Envirotech Q2 profit soars to S$18m, revenue doubles to S$105.4m
By
Malminderjit Singhmsingh@sph.com.sg@MalminderjitBT
12 Nov5:50 AM
Singapore

MAINBOARD-LISTED United Envirotech on Tuesday posted a 144.9 per cent increase in its Q2 net profit to S$18 million on the back of a 102.8 per cent increase in revenue to S$105.4 million.

Its earnings per share for the three months were 1.83 Singapore cents, higher than

[Gallen]

Latest report from Maybank KE today:

2QFY3/15 core beat expectations on higher engineering revenue. Raise core EPS by 2-4%.

Partnership with Chinese SOE and potential new investor could bring UENV to next level, providing catalysts.

Upgrade to BUY from HOLD. TP raised to SGD1.93 from SGD1.44 after EPS increases and rollover, still at 27x EPS.

[CityFarmer]

CITIC and KKR have make a preconditional voluntary offer for the company, with offer price of $1.65

The company is gaining an edge on the WWT competition, with CITIC on board.

(not vested)

http://infopub.sgx.com/FileOpen/Pre-cond...eID=324039