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STOCKS NEWS SINGAPORE-OCBC raises United Envirotech target price

Source : REUTERS
Last Updated: Thu, Nov 08, 2012 10:32 hrs

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 quarterly earnings.

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; charmian.kok@thomsonreuters.com)

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9:38 STOCKS NEWS SINGAPORE-Ezion jumps after brokers raise target prices

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 expectations.

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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