Epure ever hit a high of $2.52 and private placement to institutional dealers were between $2.16 to $2.20 and Epure is now cash rich and
dividends paying too [/quote ..ex date 18 May..payable may 29 base on current price 44cts yield 1.8% better than bank's deposits of 0.8% plus U get the dividends in 2 weeks' time.
Tips from Banker and Fund Manager..so far bought Straits Asia Resources,Cosco,CAO,etc all counters after ex-date..prices soar so got dividends and capital gains:s12:
Epure International Ltd (Buy; S$0.50; EPUR SP)
First batch of orders for 2008
Price Target: 12-Month S$ 1.07
By: Wee Lee Chong +65 6398 7971
Story: Epure announced that it has won RMB257m worth of consolidated EPC
contracts for wastewater treatment systems in the past months in China. The
contracts are secured and being finalised for signing. These latest batch
of contracts win can be broken down into: 1) Four industrial contracts (one
in Tianjin and three in Tangshan), worth RMB55m. Target completion dates
are in 4Q 2008, and 2) Three municipal contracts (one in Ezhou and two in
Hubei), worth RMB202m. Target completion dates are in the 4Q 2008 to 1Q
2009 periods.
Point: We believe that this order book update should alleviate concerns on
its lack of new order news flow y-t-d in 2008. Epure's current order book
is RMB435m, which implies that about RMB178m orders were carried forward
from 2007. Our net profit projection stays at RMB275m in FY08, assuming
RMB900m new orders win in 2008.
This latest batch of contracts also reaffirms our view that the lack of
news flow till last week is a matter of timing issue, especially when Epure
has the habit of announcing new contracts win in batches (vs. individual
contract announcements). Given China's increasing focus and stricter rules
on environmental issues, and Epure¡¯s position as one of the more recognised
EPC player for wastewater treatment systems in the PRC, we are anticipating
more orders flow in the months ahead.
Relevance: Our fair value for Epure is S$1.07, after adjusting for its
recent 1-into-3 shares split, and using 25x FY08 PE. We reckon that Epure
deserves the scarcity premium as one of the few fundamentally performing
SGX-listed water play. Epure has also declared net dividend of 2 Scents per
pre-split share for FY07. On a post share split basis, the net dividend per
share is about 0.07 Scents. Maintain BUY.Even better is Epure is going to pay 0.08 cents ex date 18May...payable 29May..evidence of its cash on hand status unlike other S chip and with contracts worth >1 $ Billion,Epure is set to soar so don't miss the boat