China Everbright Water - Faster deal flow
- Clinched new projects worth over Rmb1.1bn since the start of the year.
- More PPP and water environment restoration projects in the pipeline.
- Maintain BUY with TP of S$0.64.
- China Everbright Water (CEW)’s deal flow has improved recently. After securing multiple upgrading projects in Shandong and Liaoning, it won the bid for Hubei Suizhou High-tech Industrial Park PPP (public private partnership) project.
- Year-to-date, CEW’s total project win amount to over Rmb1.1bn in few months, compared with Rmb2.5bn in the whole of FY16.
- In addition, the Suizhou High-tech Indistrial Park PPP project involves landscaping and greening of Fuhe’s riverbanks, treatment of industrial waste water treatment for Xihe county and water environment restoration of Piaoshui Park.
- Thus, CEW has sucessfully stepped into more integrated water projects, where there is strong demand in China.
- We maintain our BUY rating on CEW with TP of S$0.64, based on 24x 12-month rolling adjusted PE (stripping out construction revenue).