CHINA EVERBRIGHT WATER.. RIPE FOR PICKING UP

More
11 Oct 2017 08:27 - 11 Oct 2017 08:28 #24075 by BULLSEYE88
BULLSEYE88 created the topic: CHINA EVERBRIGHT WATER.. RIPE FOR PICKING UP
Analysts predict upside for wastewater-treatment firms

The sector has flown under investors' radar lately, but its players have quietly been bagging contracts; business from China is expected to take off

WASTEWATER treatment firms on the Singapore Exchange (SGX) have scored a flurry of contract wins lately, but with the sector currently out of favour among investors, these have barely moved their share prices.

Still, analysts say the fundamentals of the sector remain strong, and that it is only a matter of time before their stock prices catch up.

UOB Kay Hian analyst Edison Chen said: "The whole sector is downbeat. It's at the trough of the whole cycle."

As a result, the sector is now trading at a price-earnings ratio of 15 to 18 times, compared to 26 to 30 times during their peak, noted CIMB analyst Ngoh Yi Sin.
Last Edit: 11 Oct 2017 08:28 by BULLSEYE88.

Please Log in to join the conversation.

More
11 Oct 2017 08:29 #24076 by BULLSEYE88
BULLSEYE88 replied the topic: CHINA EVERBRIGHT WATER.. RIPE FOR PICKING UP
The government has therefore made tackling water pollution - as well as air and soil pollution - a priority in its 13th Five Year Plan running till 2020.

UOB Kay Hian's Mr Chen said: "The outlook (for the water-treatment sector) is very, very good. The contract wins have been strong. Nothing has changed in the water-treatment space; it's just the news flow and the market sentiment." He said he expects the Chinese government to announce new water-related policies after the leadership reshuffle at the upcoming 19th National Congress of the Chinese Communist Party.

Please Log in to join the conversation.

More
11 Oct 2017 08:30 #24077 by BULLSEYE88
BULLSEYE88 replied the topic: CHINA EVERBRIGHT WATER.. RIPE FOR PICKING UP
She advises investors to look for companies with financial muscle, or those with access to various financing channels to fund projects, as they will be able to grab a larger share of the market and thus have higher potential for earnings growth.

Citic Envirotech and China Everbright Water are the most favoured by analysts covering the sector.

DBS Vickers has a "buy" call on both companies on account of their strong deal flows last year; these are expected to lead to stronger earnings growth this year.

Please Log in to join the conversation.

More
11 Oct 2017 08:51 #24078 by hh488
hh488 replied the topic: CHINA EVERBRIGHT WATER.. RIPE FOR PICKING UP
Hi BullsEye

There is also China EB Int'l (0257) in HKExh. Is this a subsidiary of the HK unit? So which one is a better bet.

Please Log in to join the conversation.

Share Prices

Counter NameLastChange
AEM3.0200.060
$ Alliance Mineral0.3850.035
AusGroup^0.030-
Avi-Tech0.510-
Best World1.4150.025
China Sunsine0.910-
CWG Intl0.157-
Dutech0.375-
Federal Int0.4300.010
Food Empire0.645-
Geo Energy Res0.280-
Golden Energy0.4400.010
$ GSS Energy0.1540.002
Heeton0.520-
$ ISOTeam0.3450.005
KSH0.7800.010
Lian Beng0.705-
$ Miyoshi0.0720.001
Nordic0.5450.015
Oxley0.6600.020
$ Rex Intl0.051-
Riverstone1.0650.015
Roxy-Pacific0.560-
Sunningdale Tech2.1300.010
Serial System0.170-
SingHoldings0.470-
Sino Grandness0.205-
Straco0.850-
Sunpower0.620-
Tiong Seng0.375-
$ Trendlines0.152-
N/A0.2600.010
Uni-Asia Grp1.4150.005
XMH0.290-
YZJ Shipbldg SGD1.5250.005
Powered by JoomlaGadgets

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 993 guests and no members online