not vested
CHINA WATER(855)
Analysis:
China Water Affairs Group (855) has announced results for the year ended 31 March 2016. The Group recorded a revenue of HK$40.3 billion, representing a significant increase of 41.1% compared to the same period last year.
The combined revenue from city water supply operation and construction and sewage treatment and drainage operation and construction business amounted to HK$3.63 billion, representing a yearly increase of 53.4%, and accounting for 90.1% of its total revenue , up from 82.8% in the previous financial year.
The strong growth of "Water" segment revenue was mainly attributable to the successful strategy of the Group through procurement of more construction and installation work, increase in operating efficiency and raisng of tariff of the water supply and sewage treatment plants and various mergers and aquisition.
Net profit attributable to shareholders amounted to HK$551 million, representing an increase of 48.8%. Based on the EPS of 36.58 cents , it is currently trading at less than 12 times historical P/E. (I do not hold the above stock)
Strategy:
Buy-in Price: $4.10, Target Price: $4.50, Cut Loss Price: $3.90
Source: Phillips