China Everbright (formerly: HanKore Environmental Tech Group)

[CityFarmer]

where is cityfarmer?

so like to catch falling knife right hahahaha

your stake is sooo diluted

buy more yangzijiang, buy more hankore yeah hahahahahaha

If more pp behave like u and like to gloat at other's failure, who will want to share their stock pick here? And the verdict is not out yet so YZJ and Hankore still stand a chance. Anyway i think CF bought them at low prices. Even if he chose to sell he still earn a decent profit.

Its good that we have people that share their ideas
just that I dislike people bragging about how much they bought their stock and try to influence others to buying too
he bought at 10 and 11 cents, so its $1.00 and $1.10
a far cry from whats gonna be a 70 cents stock hahahaha

rest in peace

Wow... I am on fire

I am sorry my posts have given you the trouble. Please ignore them. FYI, there is a feature under User Control Panel, and you can set me into the ignore list. Then you will not be "hurt" by my posts.

I am sure others would think otherwise. The purpose of the sharing is to share experience, otherwise meaningless. I have chosen to post detail before the result, to avoid "talk only on hindsight" trap.

I am in my early investment venture (IMO), and would like to trial and error (with calculated risk) to build-up experience. Nothing beat experience. I do make mistakes, and fortunately variable experience gained.

A reminder, the UCP has a ignore list.

Thanks

P/S. a small correction, I have bought one batch on 90 cents, and none on $1.1 or above

[CityFarmer]

Cityfarmer

I must thank you for the call. I pocketed ~20-25% returns after squaring 85% of my position last week.

Welcome. I will be happier if you catch the useful part of the story and improve it, and manage to repeat it in the future for further gain.

Congrat.

[CityFarmer]

I am yet to find time to digest the announcement. At a glance, it seems the Target is expansive. The valuation detail isn't given in the announcement.

Well, I always prepare for mistake. Isn't it the purpose of the MOS?

(vested)

[yawnyawn]

where is cityfarmer?

so like to catch falling knife right hahahaha

your stake is sooo diluted

buy more yangzijiang, buy more hankore yeah hahahahahaha

If more pp behave like u and like to gloat at other's failure, who will want to share their stock pick here? And the verdict is not out yet so YZJ and Hankore still stand a chance. Anyway i think CF bought them at low prices. Even if he chose to sell he still earn a decent profit.

Its good that we have people that share their ideas
just that I dislike people bragging about how much they bought their stock and try to influence others to buying too
he bought at 10 and 11 cents, so its $1.00 and $1.10
a far cry from whats gonna be a 70 cents stock hahahaha

rest in peace

Wow... I am on fire

I am sorry my posts have given you the trouble. Please ignore them. FYI, there is a feature under User Control Panel, and you can set me into the ignore list. Then you will not be "hurt" by my posts.

I am sure others would think otherwise. The purpose of the sharing is to share experience, otherwise meaningless. I have chosen to post detail before the result, to avoid "talk only on hindsight" trap.

I am in my early investment venture (IMO), and would like to trial and error (with calculated risk) to build-up experience. Nothing beat experience. I do make mistakes, and fortunately variable experience gained.

A reminder, the UCP has a ignore list.

Thanks

P/S. a small correction, I have bought one batch on 90 cents, and none on $1.1 or above

I always like the sharing by CityFarmer but in the end i make my own decision when it comes to buying/selling a stock.

Do continue your way of sharing. I appreciate it.

[chew]

I concur, and likewise appreciate.... my 2 cents

[/quote]

I always like the sharing by CityFarmer but in the end i make my own decision when it comes to buying/selling a stock.

Do continue your way of sharing. I appreciate it.
[/quote]

[Temperament]

For me, i am wary about any S CHIP. This is one of the S CHIPS i bought that asked you to take shares instead of dividend in the past. i did. Now after some "engineering", i have odd lots now. I think this is really a "speculative counter" though it is in a Bio-treatment of water business.
Can a "long-term business stock" becomes a "speculative counter"?
i think it can especially in CHINA.

[CityFarmer]

For me, i am wary about any S CHIP. This is one of the S CHIPS i bought that asked you to take shares instead of dividend in the past. i did. Now after some "engineering", i have odd lots now. I think this is really a "speculative counter" though it is in a Bio-treatment of water business.
Can a "long-term business stock" becomes a "speculative counter"?
i think it can especially in CHINA.

The concern is valid, not due to S-Chip status, but its failure on project management previously. In fact, this is one major concern, since project management efficiency is key factor for profitability in WWT sector.

Thing seems improving with new CEO on-board. Much so with the recent acquisition of Jiangsu Tongyong, which beef-up its project capability, IMO.

Well, we'll see...

[greengiraffe]

HanKore Environment: SGD1.19 BUY (TP: SGD1.50)

Merger Paves Way For M&A-Driven Growth

HanKore will buy China Everbright’s (CEI) pool of 25 WWT and reusable projects of 1.892m tonnes/day design capacity for CNY5.8bn, or SGD1.2bn. The successful merger removes deal overhang and gives the combined entity gearing headroom to pursue growth via M&As. We ascribe HanKore a 36x FY16F P/E (excluding earnings growth forecast from M&As), a premium to the 30x peer average, given its low 9% gearing. Maintain BUY, with changed SGD0.15 TP.

Purchase price higher than expected but within range of recent M&A transactions. The consideration of CNY5.8bn is higher than the initial expected figure of HKD4.0bn (or CNY3.3bn), but the price of CNY3,071/tonne of design capacity falls within typical M&A transactions prices of CNY2,500-3,000/tonne. As the merger will give HanKore distinctive state-backing advantages, we find the transaction price fairly decent. The CNY5.8bn will be funded through the issuance of 1.94bn HanKore shares at SGD0.703 each (with adj. factor 0.889). CEI will own 78.0% of HanKore post share issuance, making the latter its subsidiary. The transaction represents a 1.56x NAV of CNY3.7bn.

Merger lifts overhang; combined company to reap advantages and seek M&A-driven growth ahead. The transaction will boost HanKore’s waste water treatment (WWT) design capacity to 3.6m tonnes/day while the share issuance will lower the combined entity’s gearing to less than 9%. This may effectively give the group room to gear up for c. CNY2.6bn of funds (assume 40% gearing) for M&As that the company has intently expressed as its growth strategy in a consolidating WWT environment. This could potentially add 1.0m tonnes/day design capacity to its portfolio, assuming transaction prices of c. CNY2,500/tonne.

Maintain BUY, TP changed to SGD0.15. Based on our proforma estimates, we forecast the combined entity to make CNY0.205 EPS in FY16F (FYE June) based on its existing assets, without taking into account any M&A, owing to the lack of information. We value HanKore at a 36x FY16F P/E, higher than its state-backed peers’ average 30x, as its low gearing of 9% post consolidation places it in a prime position to acquire earnings-accretive WWT assets for longer-term growth.

For access to the full report, please click the following link:SG_HanKore_Update_20140603or http://rhbosk.ap.bdvision.ipreo.com/NSig...6d2329ee2c


Sarah Wong
+65 6232 3883

Terence Wong, CFA
+65 6232 3896

[psolhawk]

Quote "We value HanKore at a 36x FY16F P/E, higher than its state-backed peers’ average 30x"

Wah, this is quite a crazy PE to value any company at. I am sure Mr Market knows it well too?

[Temperament]

Quote "We value HanKore at a 36x FY16F P/E, higher than its state-backed peers’ average 30x"

Wah, this is quite a crazy PE to value any company at. I am sure Mr Market knows it well too?

Yes! what's the highest PE for STI components stock?