Following up from previous BUY CALL. Hankore has indeed broken up its resistance further in the last 2 weeks and consolidated higher. Likely to test the 0.150 level in the coming days. Range would be 0.140 to 0.150 at the moment. Good to take profit along the way too in wait of pullback. Any breakup above 0.150 can also see it go further to find new high.
Stop loss at 0.138
CIMB – 19 MARCH 2014
HanKore Environment Tech Group (AD, TP:S$0.16) - Riding China’s water boom
Riding China’s increasing environmental awareness, HanKore’s water business will soar on both capacity expansion and rising water tariff. The recently-announced deal with China Everbright International is a major near-term catalyst and will brighten its outlook tremendously. We initiate coverage on HanKore with an Add rating. HanKore’s revenue and earnings should expand in FY14-16 on the back of both capacity expansion and higher water tariffs. The RTO of CEI’s water business, once sealed, should further improve its contract clinching and project financing. With the deal currently at the due diligence stage, our preliminary SOP valuation indicates a target price of S$0.156.
Riding China’s increasing environmental awareness, HanKore’s water business will soar on both capacity expansion and rising water tariff. The recently-announced deal with China Everbright International is a major near-term catalyst and will brighten its outlook tremendously. We initiate coverage on HanKore with an Add rating. HanKore’s revenue and earnings should expand in FY14-16 on the back of both capacity expansion and higher water tariffs. The RTO of CEI’s water business, once sealed, should further improve its contract clinching and project financing. With the deal currently at the due diligence stage, our preliminary SOP valuation indicates a target price of S$0.156.
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