China Everbright (formerly: HanKore Environmental Tech Group)

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#41
Could have started from here...

http://blogs.wsj.com/chinarealtime/2014/...ffiliates/

2:59 pm HKT
Apr 22, 2014 LAW & POLITICS
Corruption Investigation Hits China Resources Affiliates
ARTICLE
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CHINA RESOURCES
SONG LIN
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Song Lin, who was the chairman of China Resources Holdings Co., is shown being interviewed in this 2013 file photo. Zuma Press
News of a corruption investigation against the chairman of a Chinese state-owned holding company hit the share prices of its Hong Kong-listed affiliates in trading Tuesday.

Song Lin, chairman of China Resources Holdings Co., which owns a group of companies spanning real estate to gas, was stripped of his position as the firm’s Communist Party chief, state news agency Xinhua reported over the weekend. Earlier last week, the Communist Party’s Central Commission for Discipline Inspection announced that Mr. Song was under investigation for “suspected serious violations of discipline and law.” That followed online allegations by a Xinhua-affiliated reporter that the value of mining assets China Resources bought in Shanxi province had been inflated.

When the Hong Kong Stock Exchange opened on Tuesday — following a closing for Monday’s Easter holiday — the market responded to the news by sending China Resources’ Hong Kong-listed affiliates in a tailspin. Electricity generator China Resources Power Holdings Co. fell 11.9% to 18.72 Hong Kong dollars (US$2.41) as investment bank BNP ParibasBNP.FR +1.92% downgraded its stock to “reduce” from “buy.”

“We expect CR Power will no long enjoy a price premium to its peers given this corporate governance issue,” the French bank said. By Tuesday afternoon, China Resources Power was down 9.8%.

Meanwhile, in early trading, beverage and retail conglomerate China Resources Enterprise0291.HK -2.01% fell as much as 6.1% to HK$21.45, and developer China Resources Land1109.HK -1.38% declined as low as 4.1% to HK$16.06. Gas distributor China Resources Gas Group1193.HK -0.68% was also under pressure, falling as much as 6.5% to HK$22.10, as its pipeline of acquisitions of gas projects was seen as threatened.

“The investigation may affect the outlook on acquisitions [of gas projects] in the near term as the local government may hesitate about cooperating with China Resources Group,” Morgan StanleyMS -0.03% warned in a note.

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By Tuesday afternoon, the stocks were still down, but to a somewhat lesser degree. China Resources Enterprise was down 3.5%, China Resources Land was still down 4.1%, and China Resources Gas Group was down 3.6%.

Mr. Song couldn’t immediately be reached for comment. In a statement posted to its website Friday, the company said it was cooperating with the investigation and that general manager Qiao Shibo had been temporarily assigned to take over for Mr. Song.

“This is a very serious time for China Resources,” the statement quoted Mr. Qiao as saying. “We need to be on high alert and reflect deeply. We need to deepen our recognition of the urgency and importance of fighting corruption.”

–Ned Levin and Gregor Stuart Hunter

Follow @ChinaRealTime on Twitter and sign up for CRT’s daily newsletter to get the latest headlines delivered to your inbox.

Correction: Mr. Song couldn’t immediately be reached for comment. An earlier version of this post incorrectly referred to him as Mr. Wang.





Follow @ChinaRealTime on Twitter and sign up for CRT’s daily newsletter to get the latest headlines delivered to your inbox.

(09-05-2014, 01:37 PM)greengiraffe Wrote: Corruption is nothing new in China and appears to be a way of life. Of course with leadership changes, the current regime will try and find scapegoats from the out of favour faction in order to justify that they are doing their jobs.

Like old chinese saying - new official got 3 fires...

So which is the first group, the rest i know: BOC, Citic, China Merchant, China Everbright...

Odd Lot Vested
GG

(09-05-2014, 01:20 PM)kbl Wrote: cut and paste for VB.

According to HK newspaper Oriental Daily, China Everbright is one of the five central government state-owned enterprises that are allegedly being investigated for corruption.

http://orientaldaily.on.cc/cnt/news/2014...4_001.html

<not vested>
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#42
Picking-up more at 9 cents. I am too slow to pick-up at lower price.

I might be catching a falling knife...Tongue

(vested)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#43
this stock seems speculative
the PE also seems high at 15 times or so?
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#44
JPM-pp1
Asia Pacific Equity Research
08 May 2014
China Water Blog

Our thoughts on recent share weakness
Shares of China water stocks fell by 5-7% today, vs HSCEI’s +1%. (Guangdong Investment was the exception, rising by 0.1% today.) We believe this was largely driven by investors taking profit on stocks that outperformed the past year, a similar trend seen in China internet stocks in recent weeks. After today’s sell-down, China Everbright Int’l (CEI) and Beijing Enterprises Water (BEW) are now trading at 16x and 17x FY15E P/E, respectively, below their historic average of 18x (see valuation table below). We recommend buying on dips as the fundamentals remain in tact. Our top pick is CEI.

Other potential reasons for China water stocks’ underperformance:

· Concerns on increasing interest expense. We believe the market may be concerned that China water companies’ earnings would be hurt by rising interest rates and weakening RMB, which would result in higher finance cost for companies that borrow in USD or other foreign currencies.
Sensitivity to interest rate changes: Of our covered China water stocks, Sound Global is most sensitive to interest expenses, with every 1% change in interest rate affecting 5% of its EPS. For CEI and BEW, the impact is 3%.

· News report on China Everbright Group. According to HK newspaper Oriental Daily, China Everbright is one of the five central government state-owned enterprises that are allegedly being investigated for corruption. Click here for the news article in Chinese.

Reasons for our positive stance on the sector:

· 16% CAGR in China incineration treatment capacity during 2016-20. We estimate incineration plants will make up 50% of China’s total urban waste treatment capacity by 2020, up from 35% in 2015. This would translate to a 16% CAGR in incineration capacity during 2015-20. With a current market share of 7%, CEI could get >20k tons/day of new WTE projects in the next five years, on our estimates.

· Revised environmental law leads to stricter enforcement. We continue to see strong government policy support on the China water and waste sector. The latest came from the revision of the Environmental Protection Ordinance, which gave local governments more power to punish polluting industries by suspending their operations and giving them fines until the problem is fixed. This is positive for both wastewater and solid waste treatment operators.

· Defensive earnings against slowing GDP growth in China. The wastewater and solid waste treatment operators under our coverage produce defensive earnings from 25-30 year concessions backed by minimum revenue guarantees. These provide for stable cash flow and earnings for the companies.

· Our stock picks: In the China Water Sector, our order of preference is China Everbright Int’l (OW on growth from waste-to-energy projects), Sound Global (OW on removal of dilution overhang), and Guangdong Investment (OW ahead of HK tariff hike).
Reply
#45
(09-05-2014, 06:11 PM)greengiraffe Wrote: · Our stock picks: In the China Water Sector, our order of preference is China Everbright Int’l (OW on growth from waste-to-energy projects), Sound Global (OW on removal of dilution overhang), and Guangdong Investment (OW ahead of HK tariff hike).

Three of them are the best ones in my list in SEHK. Within SGX, the top few were UEL and Memstar, but now may be only UEL. Hankore might make it to my list after CEI's water treatment asset acquisition.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#46
http://infopub.sgx.com/FileOpen/Profit_W...eID=296490

Profit warning!!
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#47
(09-05-2014, 10:03 PM)desmondxyz Wrote: http://infopub.sgx.com/FileOpen/Profit_W...eID=296490

Profit warning!!

Mainly due to Jiangsu Tongyong Environment Engineering acquisition, base on the article. It is mainly paper losses with new shares of 180 mil, interesting to know how the loss will be accounted.

(vested)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#48
This company cant even make a profit, how is it a value buy
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#49
(09-05-2014, 09:55 PM)CityFarmer Wrote:
(09-05-2014, 06:11 PM)greengiraffe Wrote: · Our stock picks: In the China Water Sector, our order of preference is China Everbright Int’l (OW on growth from waste-to-energy projects), Sound Global (OW on removal of dilution overhang), and Guangdong Investment (OW ahead of HK tariff hike).

Three of them are the best ones in my list in SEHK. Within SGX, the top few were UEL and Memstar, but now may be only UEL. Hankore might make it to my list after CEI's water treatment asset acquisition.

OSK/DMG:

HanKore Environment – Panic Selling Unwarranted



What's new?

 This morning, a dated news article from HK newspaper Oriental Daily suggested that China Everbright International is one of the five central government state-owned enterprises that are allegedly being investigated for corruption.
See link here: http://orientaldaily.on.cc/cnt/news/2014...4_001.html
 HanKore, which is involved in a merger deal with China Everbright International to buy over all of its waste water treatment assets, is affected as a result. There has been heavy selling since 2pm.


Our view:

 Even if the China Evverbright deal does not go through, HanKore deserves at least 15x FY15F P/E in a normalized cycle without state backing. This works out to TP SGD0.097 (see attached financial forecast which does not take into account China Everbright). HanKore's earnings growth of c.25% CAGR is driven by a systematic expansion of organic plants, which will also require heavy EPC work thereby boosting its internal EPC earnings. In that light, HanKore has been unfaily penalized from the negative newsflow on China Everbright.

 Having said that, we have spoken with management and they maintain the the deal is progressing well. In our last note, we have also pointed out that there is strong incentive for both sides to seal the deal.
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#50
Hankore looks like a trap, from a high of 14 cents already drop to 8.8 cents
with such profit warnings, good luck to those holding it... monday it will surely go below 8 cents

don't try to catch a falling knife
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