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Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by albertlaw > 2014-01-07 23:07 | Report Abuse
On Nov 25 at NTUC centre,in 2013,the CEO was there and analysts at SISAS gave a T.P of 88cts..Tritech came from from a high of about 72cts to a low of about 25 cts before it stablished > 33 cts in Nov 2013 after outlook that it may report a loss...discounted as price has since move above 40cts..proposed listing of its limestone biz,awards from contracts at new Thomson line MRT -0the CEO assured investors will give higher dividends after the spin off expected soon..once the 1 for 2 stocksplit and the 2 free bonus warrants after the split is approved(proposed on Sept 27 2013),Tritech will soar Research says there is a " huge price-value gap" in TriTech stock Reaffirming our Views We invited Tritech Group Limited (Tritech) to our Chinese seminar two days ago and the management shared with our audience some of their recent developments. At the same time, we also visited their quarry in Malaysia to get a better understanding about the current operations. In all, we are comfortable with the company?s operation and reckon that there is a huge price-value gap, if Tritech?s plans can bear fruits. We maintain our price target of S$0.880. For the engineering division, Tritech has a stable order book of about S$83m, most of which are public sector jobs. The management reiterated on their underground specialty as an avenue for future growth and we believe this division will generate stable cash flow for the Group. For the water division, Tritech is constructing a mega membrane processing plant with five factories in Qingdao. Management envisage themselves to be a one-stop membrane related center and capable of providing engineering works on water and wastewater treatment plants, management of treatment plants and production of purifier and bottled water. They currently have 16 patented products which they intend to manufacture as the factories get completed. They also recently acquired Anhui Clean Environmental Biotechnology Co. Ltd to leapfrog their position in the water treatment business in China. We visited Terratech Resources? quarry last week and saw the actual extraction of marble from the hills. Tritech has begun production on Hill 2B and Hill 3 and we reckon that they can expand the capacity by about four fold towards the end of next year. Though we are left impressed with Tritech?s venture into the water and resource businesses, we noted that the water division is still at the start-up stage and we need to see if Tritech can sell their products in China and other markets. The same applies to the marble division. That said, the division recently entered into contracts to sell marble and related products worth about S$17.95m to China. About the company: Tritech has three business divisions namely the engineering, water-related and resources divisions. Engineering Division ? Giving the Foundation: This division is Tritech?s core and primary division and it specializes in the area of geotechnical, ground and structural engineering services. There are five key subsidiaries within this business, all of which are involved in different phases of the projects. Currently, the group has about S$83m order book and approximately 91% are derived from various public sector projects. Major customers include JTC Corporation, LTA, PUB, DSTA, URA and others. During the presentation, Tritech also reiterated their underground specialty which is currently being used for the storage of crude oil and LNG and infrastructure development such as MRT. Future possible usage include data centre, incineration plant, water treatment plant, landfill and others. At the same time, the company is developing new techniques to improve productivity and investing in new equipment. This business has been a cash cow for Tritech, generating stable cash flow for the company to venture into new businesses. Another Cash Cow in the Making: For the water-related division, Tritech is involved in 1) membrane and membrane-related products, 2) water treatment engineering business and 3) water and environment protection activities.