United Envirotech's net profit jumped 145.7%

More water treatment projects in China now underway.

According to OCBC Investment Research, United Envirotech Ltd (UEL) put in a strong set of 9MFY13 results, with net profit jumping 145.7% to S$22.5m, meeting 95% of our full-year forecast, after revenue surged 108.9% to S$138.2m, also 95% of our FY13 estimate. 

3QFY13 revenue was up 159.4% at S$32.2m, while net profit was up 350.2% at S$8.5m.

Here's more:

According to management, the strong showing came from higher engineering and treatment revenue over the period. Going forward, UEL says it will continue to expand its recurring income by investing in more water treatment projects in China.

Funding should also not be an issue given that KKR will be injecting another US$40m into the company following the recent share placement. We will be speaking with management for more insights.

We are keeping our BUY rating and will review our S$0.67 fair value after our discussion with management.