Singapore Stock Market News

China Everbright - CEI vs. DynaGreen

StockFanatic
Publish date: Thu, 12 Jun 2014, 05:14 PM
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CEI is currently the only listed company with a sizeable portfolio of waste-to-energy (WTE) projects. The upcoming listing of DynaGreen has raised market concerns about investor interest being diverted from CEI. Our analysis shows that CEI is actually better than DynaGreen in several aspects. Given its market leadership, long track record and good execution, we recommend CEI as our top pick in the environmental sector.

We maintain our Add rating, earnings forecasts and DCF-based target price. CEI's continued addition of new waste treatment projects and the expansion of its grate furnace production capacity are triggers for share price outperformance, as they allow the company to start selling equipment to outsiders.
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