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China Everbright (formerly: HanKore Environmental Tech Group)
23-01-2015, 01:38 AM. (This post was last modified: 23-01-2015, 01:40 AM by boochap.)
Post: #131
RE: China Everbright (formerly: HanKore Environmental Tech Group)
(22-06-2014, 10:59 AM)CY09 Wrote: There are now 2 Polarising analyst camps in Hankore now.

At one corner, there is Maybank and OSK analyst who are issuing buy calls. Interestingly they are saying a forecast forward P/E of 30x for Hankore isn't expensive. At the other corner, Kay Hian and CIMB analyst who are recommending a sell because 33x forward P/E is too expensive. It is rather interesting. In my view, for a stock to trade at 30x P/E is pricing very optimistic expectations that its earnings will double over 5 years. Let alone to trade at forward P/E of 30x.

Like it or not, earnings is what drives a stock prices over the long run and not because it is the in flavor.

i think PE talk is rather redundant. half of CEW was CEWIL water asset and was doing well, the other half was HK which was lost making and was on its way to turnaround. There is PE to talk about for a loss making company to start with.

just some back of the envelop calc of CEW recurring income potential:

ex-CEIL wwt has total of abt (1.8mt/d * 365days) 650 mln m3/yr of contracted wwt capacty, they said they treated 276 mln m3 of wwt in 1h2014, this was abt 80% utilisation, non-construction revenue was 427 mln RMB. this translate to 1.5rmb/m3 water tariff. this was written somewhere in the 1h2014 report.

HK has 1.5mt/d or 550mln m3/yr of contracted wwt capacity, i struggle to figure out HK utilisation, i reckon that utilisation was bad, otherwise they wont be loss making anyway.. from their 1h2014 income statement (page 11 of the rto circular), non-construction revenue was 100 mln rmb for 6mth, 244mln for whole of 2013. i reckon that their water discharge standard is mostly grade b, so assume 1 rmb/m3 tarriff average. this implied a 40-45% utilisation.

obviously, one half of the company has been performing well with high utilisation high discharge tariff, while the other half is still struggling to turnaround. i can imagine if the new management is able to turn it around, we are talking about a (1.5+1.8mt/day)*0.365*1.5rmb/m3= 1.5 to 2bln rmb per yr of recurring income. which is not difficult to achieve, given the track record of the management team, cheap financing, and most importantly these are already contracted wwt capacity with the various municipal govt, they just have to make good and perform.


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25-11-2015, 03:46 PM.
Post: #132
RE: China Everbright (formerly: HanKore Environmental Tech Group)
A mammoth report covering the PRC Water Industry by RHB -

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Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.

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27-11-2015, 12:17 PM.
Post: #133
RE: China Everbright (formerly: HanKore Environmental Tech Group)
27 November, 2015 - China Everbright Water clinches RMB228 million in upgrading and expansion projects in Beijing.

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07-08-2018, 01:09 PM.
Post: #134
RE: China Everbright (formerly: HanKore Environmental Tech Group)
Financial Results for Half-year Ended 30 June 2018 ("1HFY2018")

1. In 1HFY2018, the Company recorded revenue of HKD2.36 billion, representing an increase of 44% compared to the first half of 2017
2. In 1HFY2018, gross profit grew by 42% year-on-year to HKD788 million
3. Overall gross profit margin for 1HFY2018 was 33%
4. Profit for 1HFY2018 increased by 39% yoy to HKD401 million compared to the previous corresponding period
5. Profit attributable to shareholders of the Company rose by 45% yoy to HKD371 million for 1HFY2018 compared to the previous corresponding period
6. As at 30 June 2018, gearing ratio stood at approximately 52.8%
7. As at the end of 1HFY2018, net asset value per ordinary share increased by 6% compared with the end of FY2017
8. Declared interim dividend S$0.0049 per share.

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Specuvestor: Asset - Business - Structure.

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