ANWELL TECHNOLOGIES stock rose 4 cents to touch 48 cents in the first hour of trading today, following news that its subsidiary, Dongguan Anwell Digital Machinery Co Ltd., had secured RMB700 million in capital injection from the municipal government of Dongguan.
The stock has risen 100% since June 16 when it closed at 24 cents, following a series of positive news announcements.
The latest pertains to the development of Anwell’s second thin film solar panel manufacturing base in Dongguan.
With its capital injection, the Dongguan government will become a 19.5% shareholder in Dongguan Anwell.
Significantly, this values Dongguan Anwell at S$680 million (RMB3.6 billion) while the parent company is going for just around S$150 million.
“The entry of the Dongguan Government as a strategic investor in our subsidiary provides strong assurance to our shareholders, customers and other stakeholders on the long term viability of our solar business.
"The premium valuation given to Dongguan Anwell Digital Machinery by the Dongguan Government is a strong vote of confidence in our investment potential and future growth, as we significantly ramp up our production capacity to meet global demand for thin film solar panels,” said Franky Fan, the chairman of Anwell.
At the end of five years following the capital injection, the Dongguan Government has the option of selling its shares in Dongguan Anwell to Anwell at cost plus interest.
In addition to this round of capital injection, Anwell has recently secured a total of RMB1.2 billion in long term funding for the Dongguan plant and expansion of Anwell’s solar panel plant in Anyang from the municipal governments of both cities.
Anwell aims to achieve 1.5GW annual production capacity within 5 years.
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Infrastructure and civil engineering company OKP Holdings announced a profit after tax attributable to equity holders (net profit) of S$12.1 million for its first half ended 30 June 2011, up 55.6% from previously.
The Group's revenue of S$61.1 million was lower compared to S$73.7 million in the previous corresponding half-year.
Gross profit jumped by of 60.9%, or S$7.5 million, from S$12.4 million previously to S$19.9 million.This was due primarily to cost savings in certain design-and-build construction projects which resulted in better gross profit margins.
Earnings per share (basic) for the half year ended June 2011 was 4.27 cents, an improvement of 40.5% compared to 3.04 cents previously.
It announced also an unchanged interim dividend of 1 cent per share, which works out to a dividend payout ratio of 23.4% based on 1H2011 profits.