SINGAPORE (May 19): UOB Kay Hian is keeping its “buy” recommendation on CITIC Envirotech with an unchanged target price of $1.10 on the back of the group’s order win momentum, advanced membrane technology, and China’s continued focus and efforts towards combating environmental pollution.
This comes after Citic Envirotech’s announcement of its latest RM3 billion ($610 million) mega project win in Ningbo, China, which the research house believes further cements it confidence in the group’s $1 billion project win target for the year.
(See also: CITIC Envirotech secures $610 mil river restoration project in China)
“Given an expected RMB900 billion worth of new projects upcoming for the industry in China for 2017 and a 9% annual growth going forward for the industry, we believe this strong order win momentum will be sustained and CEL will continue to announce further wins in 2017,” comment analysts Edison Chen and Nicholas Leow in a Friday report.
“We look forward to order wins in the area of hazardous waste/sludge treatment and management and circular economy,” they add.
Further, the analysts believe CITIC Envirotech’s recent share price dip offers investors a chance to collect below CITIC’s and near China Reform Fund’s (CRF) buy prices of 82.5 cents and 72.5 cents respectively.
As at 12.34pm, shares of CITIC Envirotech are trading 1 cent higher at 76 cents.
