Sunday, September 15, 2013

MayBank KE Report 16 Sep 13

HanKore Environment - Cheaper Exposure to China Water Sector
BIOT SP | Mkt Cap USD209m | ADTV USD3.7m
Ø We recently met with Hankore's management and visited one of its water plants in Suzhou. We are impressed by the restructuring and progress that occurred in the past few years and think there are some improvements in company's fundamental.
Ø We identified three main growth drivers for the company: EPC revenue, capacity expansion and water tariff hike.
Ø Despite the risk such as interest rate risk, liquidity risk and credit risk, valuation seems attractive compared to peers at only 8.2x 12m trailing PER.
Click here for full report weibin@maybank-ke.com.sg

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