OCBC Investment Research raised its target price on water
treatment firm United Envirotech Ltd to S$0.67 from
S$0.50 and kept its 'buy' rating, citing better-than-expected
By 0235 GMT, United Envirotech shares were up 1.4 percent at
S$0.37, and have gained 13.8 percent since the start of the
year, compared to a 1.5 percent rise in the FTSE ST China Index
United Envirotech posted a second-quarter net profit that
more than doubled to S$8.4 million from a year earlier, helped
by strong engineering and treatment sales.
"United Envirotech continues to remain bullish on the
waste-water treatment market in China, where demand for
membrane-based services will continue to grow," said OCBC,
adding that the upgrading of old water treatment plants also
offered growth potential.
The brokerage noted that United Envirotech was on the
lookout for more water projects in Shandong, Jiangsu and
Liaoning to add to its portfolio and had a relatively strong
financial position to do so. With a cash balance of S$470.1
million as of the end of September, OCBC expects United Engineer
to be able to finance up to S$175 million of projects.
1035 (0235 GMT)
(Reporting by Charmian Kok in Singapore; Editing by
Subhranshu Sahu; firstname.lastname@example.org)
9:38 STOCKS NEWS SINGAPORE-Ezion jumps after brokers raise
Shares of Ezion Holdings Ltd jumped as much as 5.2
percent to a two-week high after several brokerages raised their
target prices for the offshore services firm, following new
contract wins secured by its joint venture.
By 0127 GMT, Ezion shares were up 3.8 percent at S$1.385,
and have more than doubled since the start of the year.
OCBC Investment Research raised its target price for Ezion
to S$1.70 from S$1.53 and kept its 'buy' rating, after
increasing its 2013 and 2014 earnings estimates by 13.4 percent
and 9.8 percent respectively to account for contract wins.
Ezion's joint venture with Kim Seng Holdings Pte Ltd secured
contracts worth up to $298 million to provide two service rigs
over seven years.
"The constant flow of contracts illustrates the demand for
Ezion's expertise and assets, which we find very encouraging,"
said OCBC in a report.
CIMB Research also raised its target price for Ezion to
S$1.68 from S$1.64 and kept its 'outperform' rating. Both
brokerages said Ezion's third-quarter earnings were within
Ezion's net profit in July-September rose 24.4 percent to
$16.1 million from a year earlier, helped by higher revenue from
its chartering and logistic support vessels businesses.
0928 (0128 GMT)
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