China Everbright (formerly: HanKore Environmental Tech Group)

[CityFarmer]

I prefer Sound Global, which had corrected from its $9.26 HKD peak and is currently priced below $6 HKD.

(Vested)

Just to confirm, are you vested in Hankore?

Sound Global "suffered" in dilution due to CB conversion recently.

[Tiggerbee]

I prefer Sound Global, which had corrected from its $9.26 HKD peak and is currently priced below $6 HKD.

(Vested)

Just to confirm, are you vested in Hankore?

Sound Global "suffered" in dilution due to CB conversion recently.

Yup, I was aware of the share dilution on Sound Global. The dilution is about 14% of the outstanding shares at about $4.23 HKD, which works out to be about 36 ct adjustment (based on $7.19 HKD closing price on 16th Apr). $5.5 HKD seems to be a better entry price and Fibonacci support level but I'm willing to take the risk as the stock is priced at < 15x PE based on 2013 earnings (and about 16x PE based on diluted EPS). I'm ready to average down.

I was vested in Hankore until last Fri when I cut loss at 0.109c, just before the big plunge. I used my proceeds to buy back more Sound Global. Previously, I had traded Sound Global and exited with a 30% ROI.

[greengiraffe]

website: http://www.ebchinaintl.com/en/investors/...id=p140511


Everbright International Secures Shandong Tengzhou Waste-to-Energy Project


11 May 2014, Hong Kong – China Everbright International Limited ("Everbright International" or the "Group") (HKSE: 00257) is pleased to announce that it has signed a concession agreement with the Municipal People’s Government of Tengzhou City, Shandong Province ("Tengzhou Municipal Government"), for the investment and construction of a household waste-to-energy project in Tengzhou City (“Tengzhou Project” or the “Project”).

Tengzhou Project is designed with a total daily household waste processing capacity of 1,000 tonnes and will be constructed in two phases. The Project Phase I is designed with a daily household waste processing capacity of 600 tonnes, commanding a total investment of approximately RMB339 million. It is expected to generate green electricity of approximately 80,000,000 kWh annually. The Project will be constructed on a BOT (Build-Operate-Transfer) basis for 30 years and its gas emission will comply with the Euro 2000 Standard.

As the most populous county-level city in Shandong Province and one of the top 100 counties in China, Tengzhou City continues to undergo rapid economic and social development. Following the improvements in the living standards of its citizens, the Tengzhou Municipal Government is pushing forward with the development of ecological civilization to improve the environment and actively develop the harmless treatment and reuse of household waste.

Mr. Chen Xiaoping, CEO of Everbright International, said, “Located in southern Shandong and in close proximity to northern Jiangsu, Tengzhou Project connects the Shandong and Jiangsu markets for the Group to further reinforce its footprint in these two strategic regions. As the largest integrated environmental protection service enterprise in Shandong and Jiangsu, Everbright International will adhere to its principle of quality construction and capitalize on its wealth of management experience and technical excellence to achieve the best economic and social benefits for Tengzhou Project and contribute to the sustainable development of Tengzhou City.”

FYI, waste-to-energy business isn't part of the Hankore-CEI's deal. The deal is on the waste-water treatment business.

I think the significance of the news lies in Everbright International's continued ability to secure deals, ie corruption investigations have minimal impact on ongoing operations and deal flows.

Trading Vested
GG

[CityFarmer]

website: http://www.ebchinaintl.com/en/investors/...id=p140511


Everbright International Secures Shandong Tengzhou Waste-to-Energy Project


11 May 2014, Hong Kong – China Everbright International Limited ("Everbright International" or the "Group") (HKSE: 00257) is pleased to announce that it has signed a concession agreement with the Municipal People’s Government of Tengzhou City, Shandong Province ("Tengzhou Municipal Government"), for the investment and construction of a household waste-to-energy project in Tengzhou City (“Tengzhou Project” or the “Project”).

Tengzhou Project is designed with a total daily household waste processing capacity of 1,000 tonnes and will be constructed in two phases. The Project Phase I is designed with a daily household waste processing capacity of 600 tonnes, commanding a total investment of approximately RMB339 million. It is expected to generate green electricity of approximately 80,000,000 kWh annually. The Project will be constructed on a BOT (Build-Operate-Transfer) basis for 30 years and its gas emission will comply with the Euro 2000 Standard.

As the most populous county-level city in Shandong Province and one of the top 100 counties in China, Tengzhou City continues to undergo rapid economic and social development. Following the improvements in the living standards of its citizens, the Tengzhou Municipal Government is pushing forward with the development of ecological civilization to improve the environment and actively develop the harmless treatment and reuse of household waste.

Mr. Chen Xiaoping, CEO of Everbright International, said, “Located in southern Shandong and in close proximity to northern Jiangsu, Tengzhou Project connects the Shandong and Jiangsu markets for the Group to further reinforce its footprint in these two strategic regions. As the largest integrated environmental protection service enterprise in Shandong and Jiangsu, Everbright International will adhere to its principle of quality construction and capitalize on its wealth of management experience and technical excellence to achieve the best economic and social benefits for Tengzhou Project and contribute to the sustainable development of Tengzhou City.”

FYI, waste-to-energy business isn't part of the Hankore-CEI's deal. The deal is on the waste-water treatment business.

I think the significance of the news lies in Everbright International's continued ability to secure deals, ie corruption investigations have minimal impact on ongoing operations and deal flows.

Trading Vested
GG

My apologies for not able to catch your point. You have a valid point.

[yawnyawn]

http://infopub.sgx.com/FileOpen/_ALAN_eF...eID=297064

Wang Yu Huei increased his stake in Hankore from 10.01% to 11.02% on Monday(12 May 2014) - 51.017m shares for a cool S$4.9m - which works out to roughly an average price of $0.096. Is he trying to signal to minority shareholders that he is confident that the RTO will go through?

(vested)

[greengiraffe]

Alan Wang is the hottest man in town in the current cycle of the bull run. Oei HL, David and Han and to a lesser extent Sam Goi were big movers in the previous cycle.

Maybe should follow the smart $.

Anyway, water and environmental plays in China is another concept stocks just like what Hyflux, Raffles Edu, Midas and Ezra were previously. Until they generate proven consistent cashflows, risks remain high.

Trading Divested
GG

http://infopub.sgx.com/FileOpen/_ALAN_eF...eID=297064

Wang Yu Huei increased his stake in Hankore from 10.01% to 11.02% on Monday(12 May 2014) - 51.017m shares for a cool S$4.9m - which works out to roughly an average price of $0.096. Is he trying to signal to minority shareholders that he is confident that the RTO will go through?

(vested)

[greengiraffe]

3Q normalised margins appeared to be squeezed but I really have little ideas as to how water treatment and construction fares in China and if there is any seasonality at play...

http://infopub.sgx.com/FileOpen/Hankore_...eID=297484

[CityFarmer]

The resolution on 10-to-1 share consolidation is passed in SGM today.

http://infopub.sgx.com/FileOpen/HanKore_...eID=297482

[CityFarmer]

3Q normalised margins appeared to be squeezed but I really have little ideas as to how water treatment and construction fares in China and if there is any seasonality at play...

http://infopub.sgx.com/FileOpen/Hankore_...eID=297484

I extracted the brief of the 9 months result below. The "goodwill" of the recent acquisition is "write-off" immediately in this quarter. Why the rush?

GG, the recurring income of water treatment is pretty stable, and typically with a guaranteed volume. Construction is project-base, and depend on secured projects.

(vested)
------------
HanKore’s 9MFY2014 net profit, excluding fair value adjustments and one-off items, increases 146.2% yoy to RMB88.0 million
• 9MFY2014 revenue more than double yoy to RMB454.8 million, gross profit surged 81.0% to RMB192.4 million
• Profitability growth momentum continues as 3QFY2014 gross profit increased 40.7% yoy to RMB56.5 million on the back of 56.3% yoy jump in revenue to RMB125.7 million
• Group registered a net loss of RMB111.9 million in 3QFY2014 after one-off non-cash fair value adjustments and non-recurring expenses
• Group water treatment capacity to increase over the next 12 months based on the scheduled completions of plant expansion and upgrades

[yawnyawn]

The resolution on 10-to-1 share consolidation is passed in SGM today.

http://infopub.sgx.com/FileOpen/HanKore_...eID=297482

Proposed 10-to-1 Share Consolidation shall be effective from 9.00 a.m. on the Market Day immediately following the Books Closure Date, being 27 May 2014.

Notwithstanding that the Proposed Share Consolidation will only become effective on the Effective Date, the Consolidated Shares will begin trading in board lots of 1,000 Consolidated Shares at 9.00 a.m. on 22 May 2014 (the “Effective Trading Date”), except as provided below where temporary arrangements have been made to facilitate Shareholders trading in odd lots of Consolidated Shares which may arise from the Proposed Share Consolidation

http://infopub.sgx.com/FileOpen/Hankore_...eID=297709

Bid size will be 0.5 cents instead of 0.1 cents from 22 May 2014 onwards. Hopefully there will not be another extension to the DD period and more details can be revealed.