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Brokers' take
Add BT as a preferred sourcePublished Thu, Jul 25, 2019 · 09:50 PM
DeeperDive is a beta AI feature. Refer to full articles for the facts.
Citic Envirotech (CEL)| Hold (downgraded) July 25 close: S$0.30 Target price: S$0.34 DBS Equity Research, July 25
Our biggest concern on CEL is execution risk as slow project execution has been the main reason for earnings disappointment. CEL's valuation is rather stretched given the low single-digit earnings growth in FY2019.
The high adjusted net debt-equity ratio (adjusted for perpetual securities) is also a concern, climbing from 1.1 times in FY2018 to 1.27 times in the first half of FY2019. We need to see more signs of recovery before we are positive on CEL's growth outlook.
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