NewOcean Energy (342 HK): growing from market consolidation- Not Rated
Friday, January 8, 2010 at 9:49AM to summarize…
- NOE is the biggest LPG importer and exporter in China.
- NOE is growing from market consolidation benefiting from its efficient operation Chain and management
- Gross profit increased 105.3% YoY due to the lower international LPG price for 1H FY12/09A.
- Leveraging the facility in Zhuhai to develop the higher margin LPG business in HK and Macau. And it is expected to bring significant profit contribution.
- Expanding Zhuhai Terminal to have throughput capability of 1.6m tons a year, which is expected to complete at the end of 2010.
- The capex for 2010 would be around HK$157.0m, which could be funded by NOE’s own funds.
- NoE would still keep its electronic business as a profit contributor, however, it is possible to be disposed in the future.
- The counter is currently trading at 60.8% discount with 9.1x FY12/10F P/E based on our back of pad estimate.
342, NewOcean Energy