HanKore has gained 209% in the past 12 months. Underpinning its current share price level is the potential asset injection by China Everbright International which would propel Hankore into the big league in China's water treatment industry. Chart: BloombergIN ITS latest communication with the investment community, HanKore Environment's management spoke at Bank of America Merrill Lynch ASEAN Stars Conference on 6 March.They met with fund managers from more than 10 institutions, such as Goldman Sachs Asset Management, Fullerton Fund Management (a unit of Temasek Holdings), Daiwa Asset Management, Lloyd George Management (a member of the BMO Financial Group), and Mitsubishi UFJ Trust.
HanKore's story is hotting up, as it is on the verge of acquiring all of China Everbright International’s water investments which has a total sewage treatment capacity of 1.8m tpd and reusable water capacity of 61,500 tpd.
The asset injection will potentially double the Group’s daily water treatment capacity.
Photo by Tok Chong YapFollowing that, China Everbright will become the controlling shareholder with a 71% stake in Hankore.Investors of HanKore’s have undoubtedly made lots of profit. The stock chart on the right says it all.
Subsequent to HanKore's presentation at the Merrill Lynch event, the stock has firmed up above the S$0.13 level.
Investor interest grew strongly as investor relations efforts, coupled with HanKore's business performance, translated into strong stock price action.
In just six months, from July 2013, HanKore’s market capitalisation surged 83.3%, from S$195 million to S$593 million -- and it added another $70 million recently.
HanKore was extensively featured in the media and achieved coverage by analysts from local and regional research houses.
For example, on 24 January, UOB Kayhian initiated coverage with a “buy” rating and target price of S$0.137. Subsequently, OSK-DMG followed suit with a “buy” rating and a target price of S$0.161.
For its role as HanKore's investor relations consultant, Financial PR recently won the gold award for Best Investor Relations Campaign at the Singapore PR Awards 2014.
The inaugural event was organized by Marketing magazine, Asia’s leading source of advertising, marketing and media intelligence in Singapore, Hong Kong and Malaysia.
Financial PR’s investor relations efforts for Cordlife Group, Riverstone Holdings Limited and Yangzijiang Shipbuilding were among the 6 finalists in the Best Investor Relations Campaign category.
The criteria for winning this award were the impact of investor relations efforts on a company’s market valuation, a change in stakeholders’ behavior, and other metrics that gague the investor relations campaign’s effectiveness.
The FPR team (L-R): Charlotte Fu, Gabriel Tan, Kamal Samuel, Elizabeth Low (deputy editor, Marketing Magazine), Kathy Zhang, Ngo Yit Sung and Jasmine Leong.Photo: Marketing magazine.
Ngo Yit Sung, the investor relations consultant of HanKore Environment, said: “In order to revamp HanKore’s corporate image and regain investors’ confidence, we firstly identified the key challenges, such as HanKore’s historical baggage which had led to a huge valuation gap between HanKore and its peers. This was followed by proactive engagement with the management and the investment community to uncover information inefficiencies in the market.
"With that, we were able to reposition the company and devise a strategy to deliver HanKore’s investment merits to the investment community effectively.”
David Chen, Executive Chairman of HanKore, said: “Following Financial PR’s intensive investor relations campaign for HanKore, we garnered a lot of positive interest and attention from both the media and investment community. Thanks to a great working team at Financial PR, we’re able to effectively promote our turnaround growth story to the local media and investment community.”
Ms. Kathy Zhang, Founder and Group MD of Financial PR, said: “With the backing of a strong team and our track record of proven strategic investor relations, we believe we are able to help more Asia Pacific public companies to effectively harvest the benefits of good investor relations.”
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