KUALA LUMPUR: Shares of SALCON BHD [] rose in active trade on Tuesday, March 22, as sentiment perked up in the counter after its subsidiary secured an industrial wastewater treatment plant (IWTP) project in China.
At 9.42am, it was up four sen to 64 sen with 2.02 million shares done.
OSK Research is maintaining its fair value for Salcon at 72 sen pending its disclosure of more details of the IWTP in China.
Salcon's subsidiary Salcon Changzhou (HK) Ltd secured a 30 million litres per day IWTP concession in Jiangsu Province, China. The concession period is for 30 years upon the signing of the agreement with Jiangsu Province and will be acquired via a transfer-operate-transfer (T-O-T) basis.
The acquisition is priced at 60 million renminbi, or about RM27.7 million (as of March 9, 2011 based on RM1 vs 2.1659 renminbi).
'Pending the disclosure of more salient terms (especially on the cost structure) on the IWTP, we maintain our FV for Salcon at 72 sen. Riding on the company's growing portfolio of water concessions in China, we also maintain our BUY recommendation on the stock. Securing the latest concession enhances the stock's FV,' it said.
At 9.42am, it was up four sen to 64 sen with 2.02 million shares done.
OSK Research is maintaining its fair value for Salcon at 72 sen pending its disclosure of more details of the IWTP in China.
Salcon's subsidiary Salcon Changzhou (HK) Ltd secured a 30 million litres per day IWTP concession in Jiangsu Province, China. The concession period is for 30 years upon the signing of the agreement with Jiangsu Province and will be acquired via a transfer-operate-transfer (T-O-T) basis.
The acquisition is priced at 60 million renminbi, or about RM27.7 million (as of March 9, 2011 based on RM1 vs 2.1659 renminbi).
'Pending the disclosure of more salient terms (especially on the cost structure) on the IWTP, we maintain our FV for Salcon at 72 sen. Riding on the company's growing portfolio of water concessions in China, we also maintain our BUY recommendation on the stock. Securing the latest concession enhances the stock's FV,' it said.
No comments:
Post a Comment