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Guess is once the deal with JZPU is seal, this counter will move up significantly...Holding on for good news to come....
Tritech Group Limited - Completing the Value-Chain
This morning, Tritech Group Limited (Tritech) announced that the company has entered into a non-binding MOU to acquire a 49% stake in Jining Zhongshan Public Utilities Water Company Ltd (JZPU). With this acquisition, Tritech now has a vertically integrated value-chain in the water and wastewater treatment segment and is well-positioned for more growth opportunities. If the integration of the water-related business goes well and the utilization of JZPU improves to > 80%, the water and engineering business may be worth a P/B of 2.0X. Together with the S$234m potential value that we had previously estimated on Terratech (based on certain assumptions), Tritech may be worth a potential price of S$0.380.
More about JZPU:
JZPU was incorporated in 2009 and was granted a special 30 year operating license to treat and supply drinking water and waste water-treatment activities in Jining City. It is also responsible for meeting the domestic and industrial water treatment and water supply needs of the city district. This special license makes them the sole water supplier in Jilin City, which has a population of about 8.43m. Currently, JZPU has four water supply plants and one water treatment plant, with daily water supply of 300,000m³ and daily water treatment output of 200,000m³ . The entity has a total assets of approximately RMB990m and net asset of around RMB640m.
Synergy within the Water Division:
Tritech has a mega membrane processing plant in Qingdao and has engineering and construction expertise with the acquisition of Anhui Clean Environmental Biotechnology Co., Ltd (ACEB). The entry of JZPU helps to form a vertically integrated value chain where Tritech has the complete technical know-how, from the production of membrane parts to the construction and management of water and wastewater treatment plants.
More Growth Ahead:
In addition, we see several opportunities where Tritech can grow its water-related division,
1) by increasing the utilization rate and capacity of JZPU,
2) acquiring assets that are similar to JZPU,
3) building and running water treatment plant themselves and
4) applying the expertise back in Singapore.
Funding the Acquisition:
In connection to the acquisition, Tritech has entered into a non-binding term sheet with Successive Investments Limited and a group of proposed investors to issue S$42m of convertible loan. The loans have an indicative interest rate of 12% per annum and the repayment will be done via the allotment and issue of new fully-paid ordinary shares &ndash which will be priced at a 10% discount to the last seven trading days and subject to a minimum conversion price of S$0.200 per share and maximum price of S$0.280 per share. The introducer will also be issued about 9.1m new shares as commission (subject to successful drawdown of the loan) and an option to subscribe for 30m new shares at an exercise price of S$0.231. We reckon that this loan coupled with internal cash or some bank borrowing will be more than enough to finance the JZPU acquisition.
Industry Outlook:
Water scarcity and quality remain a top priority amongst the government officials and emphasis have been placed on agricultural environmental pollution and over-extraction of groundwater. To tackle the financing problem, China water prices have been rising steadily over the past few years and the authority is looking to implement tiered structure approach towards water pricing over the next two years. The higher tariffs can encourage corporates to upgrade the existing facilities and improve the overall water treatment standard. We believe the trends are advantageous to Tritech, which has the technical expertise to execute these changes.
Tml is Friday , will it give us a surprise?
luckyfa ( Date: 24-Apr-2014 10:27) Posted:
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Lets make it chiong today.....atleast 2cents ^ will be good.
victortan ( Date: 22-Apr-2014 22:27) Posted:
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Observe CUP & HANDLE formation...likely breakout soon...profit taking likely done already...
Will be buyinng more plus warrant share too....looking forward to ^30cents
golden_SGX ( Date: 23-Apr-2014 22:52) Posted:
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maybe tmrw, today all the actions are still on HanKore Env, SIIC Environment, Golden Agri-Res ...
today also lots of short sellers & they win
$ Tritech Group W190329 2,630,000 SGD 230,510
luckyfa ( Date: 23-Apr-2014 22:45) Posted:
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Just got in today...am sensing it' s chong coming....Hope it' s tomorrow starting....
golden_SGX ( Date: 22-Apr-2014 22:48) Posted:
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Today we see SIIC Environment, Vallianz, HanKore Env & other pennies chiong.
Tmrw we shall see if its Tritech Group turn to chiong liao.
victortan ( Date: 22-Apr-2014 22:27) Posted:
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Ai chiong liao.
General Announcement::Award of S$9.955 million Instrumentation and Monitoring Contract
AWARD OF S$9.955 MILLION INSTRUMENTATION AND MONITORING CONTRACT
_______________________________________________________________________________________
The Board of Directors (" Directors" ) of Tritech Group Limited (the " Company" and together with its
subsidiaries, the " Group" ) wishes to announce that its wholly-owned subsidiary, Tritech Engineering &
Testing (Singapore) Pte Ltd (" Tritech Engineering" ), had on 21 April 2014, been awarded a S$9.955
million contract, " Contract T2907 for the Instrumentation and Monitoring for Thomson Line Contracts
T225 and T226" (the " Contract" ) by the Land Transport Authority (" LTA" ) for the Thomson Line
(&ldquo TSL" ).
The TSL will be the sixth mass rapid transit (" MRT" ) line in Singapore comprising 22 stations and 6
interchange stations with a 30 km underground train line between the Woodlands North and Gardens
by the Bay stations.
The Contract comprises of Thomson Line Contracts T225 and T226 (" Contracts T225 and T226" )
which relates to the part of the TSL comprising the Shenton Way and Marina Bay stations with a
tunnel length of about 1.5 km.
Tritech Engineering has been appointed by the LTA under the Contract to provide instrumentation and
monitoring services for Contracts T225 and T226, which includes, inter alia, supplying and installing
geotechnical instruments and monitoring ground movements within the surrounding excavation and
construction area.
The commencement date of the Contract is 21 April 2014 and the expected completion date for
Contracts T225 and T226 is 30 December 2020. The defects liability period is 6 months.
Save for the Company' s independent director, Professor Yong Kwet Yew, who is a board and
executive committee member of the LTA, none of the Directors or substantial shareholders of the
Company has any interest, direct or indirect, in the Contract (other than through their shareholdings in
the Company). Professor Yong Kwet Yew was not involved in giving any recommendation in respect
of the Contract or in any discussions or negotiations leading to the award of the Contract.
The Contract is not expected to have any material impact on the consolidated earnings per share
and/or net tangible assets per share of the Group for the current financial year ending 31 March 2015.
BY ORDER OF THE BOARD
Dr Wang Xiaoning
Managing Director
22 April 2014
Warrants price at $0.080, execrise price at $0.200. TP for this counter is $0.280.
I got in yest at 0.235. lowsy price. wonder when is BB going to start pushing the price.. today vol like lower than yest?
BB support the price at 0.230. Collected some at this price...
If spin.off never give share.or.div for shareholders.....wat for!!...
ysh2006 ( Date: 16-Apr-2014 08:30) Posted:
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I supposed need to find out when Tritech will spin off it marble business to list in SGX lah, eye big to see when loh...no spin off will close both eyes no see loh....
victortan ( Date: 15-Apr-2014 22:46) Posted:
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But I think play will beback soon, Watching with eye big big. hehehe
Yep, this coy ok, but invester scare the huge dilution of exsiting shr.
(cont.)
Outlook and Valuation:
Tritech completed a one-for-one share split and two-for-one bonus warrant last month. Together with the proposed convertible bond (assuming a conversion price of S$0.231 and 221m shares are issued), the maximum shares outstanding is approximately 1.38bn. The water and engineering business may be worth 2.0X P/B if the integration of the different business unit goes well and utilization rate of the JZPU goes above 80%. We retain the potential value of Terratech and now set the potential price of Tritech at S$0.380 per share.| Figure 1: Valuation | |||||
| S$m | |||||
| Value of Terratech | 234 | ||||
| Water and Engineering | 165.0 | ||||
| Proceed from Warrant | 77.3 | ||||
| Proceed from C.B | 48.9 | ||||
| Total Valuation | 525.2 | ||||
| Total Shares Outstanding | 1380.7 | ||||
| Price Per Share | 0.380 | ||||
Source: Voyage Research
Focus213 ( Date: 15-Apr-2014 13:50) Posted:
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In normal case is buy in only
moneycow ( Date: 15-Apr-2014 16:28) Posted:
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