C&G Env Protect   

Venturing into new business

I saw this is one of gem, but anyone know why no one seems interesting? v v low vol

 

  C&G Environmental Protection Holdings Limited announce that it has recently started construction of a new WTE plant located in Xiaogan City , Hubei Province. The Xiaogan plant will be completed in two phases, with phase 1 to commence operations in the first half of 2012, and Phase 2 to commence operations in one to two years after Phase 1 starts operations. The designed waste treatment capacities for Phase 1 and Phase 2 are 700 tons per day and 350 tons per day respectively.

 /sgx masnet/

 

 

C&G starts construction of its 4th waste-to-energy plant this year

WRITTEN BY THE EDGE

FRIDAY, 17 DECEMBER 2010 18:52

C&G Environmental Protection Holdings, the emerging player in China’s renewable waste-to-energy sector, says it has recently started construction of a new WTE plant located in Xiaogan City, Hubei Province. The Xiaogan plant will be completed in two phases, with Phase 1 to start operations in the first half of 2012, and Phase 2 to start one to two years after Phase 1 starts. The designed waste treatment capacities for Phase 1 and Phase 2 are 700 tons per day and 350 tons per day respectively. C&G secured the build, operate and transfer (BOT) project for the WTE plant in Xiaogan City in May, making it the 10th BOT project the group has secured over the last few years. The Xiaogan plant is the fourth plant that C&G has started construction this year; others include the WTE plants located in Yingkou, Langfang, and Jiangyan. /theedgesingapore/icomeireadipost/////

 

tis $ only enough to fund 0.5-1 green project


 

 

Industrials ‐ C&G Industrial Holdings (CNGA SP) is hiving off its PET chips
and yarn business for up to US$58 million. The company said that it had
inked a preliminary deal to sell its textile business ‐ for at least $49 million ‐
to Hou Shiqing, a major shareholder of Shishi City Gangyi Dyeing
Manufacture Co Ltd. The sale price is subject to further negotiations, taking
into account the financials of C&G's textile arm, CHGU Group Technology
Holdings International.

 

C&G: To be top 3 in China’s waste-to-energy treatment

Written by Sim Kih

Wednesday, 24 March 2010

C&G executive director Lin Yan is a strong advocate of clean waste disposal. NextInsight file photo CLEAN ENERGY play, C&G, is on track to becoming one of China’s largest waste-to-energy players. It recently secured 30-year concessions from two Fujian cities, bringing its rights to treat municipal solid waste to 9,000 tons a day. With this additional capacity, it is now one of the top 3 waste-to-energy players in China. In all, it has concessions for 9 build, operate and transfer new waste-to-energy plants in 4 provinces – Fujian, Hubei, Liaoning and Hebei. The plants will have plenty of waste to treat, as China has surpassed the United States in 2004 as the world’s largest producer of municipal solid waste at about 190 million tons a year.  By 2030, this figure will have more than doubled to at least 480 million tons, according to World Bank estimates. An adverse impact of its rapid urbanization is the rapid increase of its garbage - a hefty 8% a year. NextInsight had the opportunity recently to understand the state of China’s clean energy development in an exclusive interview with Mr Lin Yan, the founder and executive chairman of CuGu Environment Protection International, C&G’s newly acquired waste-to-energy business. Mr Lin was appointed executive director of C&G on 14 Jan when shareholders approved the acquisition of its new business.  The acquisition was completed on 9 Feb for Rmb 563.7 million. Waste-to-energy power enjoys a subsidy over the normal electricity tariff in some provinces. China wants to build another 200 waste incineration plants with total treatment capacity of about 200,000 tons a day during 2011-2015, according to its national twelfth five-year plan. Landfills have traditionally been the most common method of waste disposal, but older, poorly designed or poorly managed landfills have adverse environmental impact such as emission of landfill gas, wind-blown litter, vermin, and generation of liquid leachate. Through sterilization, C&G’s waste-to-energy plants can completely decompose the harmful elements in municipal solid waste using high-temperature combustion. Pathogens can also be completely destroyed, rendering the waste harmless. In fact, it is the only effective treatment method for combustible carcinogens, viral pollutants and virulent organics. To address China’s serious pollution issues, its Ministry of Construction has outlined a National Waste Disposal Plan to increase energy-from-waste from 2005 levels of less than 2% of waste disposal to 30% of total municipal waste disposal by 2030. The environmental protection sector is also one of the ten investment areas of China’s Rmb 4 trillion stimulus package. ”Our capacity utilization is 100% guaranteed,” said Mr Lin.      C&G INDUSTRIAL   Recent stock price 23 cts Market cap S$223.8 m 52-week high/low 31 / 7 cts Bloomberg est PE 18.8 X Price/Cashflow 7.2 X Price/Book 0.6 X  Bloomberg, 22 Mar 2010  Power grid companies, which transmit electricity to end users, are required to off take 100% of electricity produced by renewable energy producers within the same vicinity, according to China’s Renewable Energy Law passed in 2005. That is to say, sophisticated electricity producers using renewable energy resources such as waste, wind power, solar energy, hydropower, biomass, geothermal power, etc. have the first right to sell their electricity output over traditional electricity producers which use petroleum resources. C&G’s waste-to-energy business has two revenue streams:  Firstly, it has long-term waste-treatment agreements with local governments.  Secondly, it collects tariffs from agreements with local electrical power companies. The two new waste-to-energy plants are slated for completion in 2012, and each is designed to treat 600 tons of municipal waste per day. The estimated total cost of investment for the two projects is approximately Rmb 600 million and will be fully funded from internal resources and borrowings at the project companies’ level. C&G’s generated revenues of Rmb 409.4 million in FY09 by manufacturing feedstock for synthetic textiles such as differential PET chips, polyester short fiber, bi-component short fiber and functional yarns. FY09 revenues were down 43.6% year-on-year but with waste-to-energy contributing to top line this year onward, its management is expecting better financial performance.

 

 

By LYNETTE KHOO

 

C&G Industrial Group has secured two new built-operate-transfer projects in Fujian province to treat solid waste with an estimated total cost of investment of 600 million yuan (S$122.6 million).

 

These projects, located in Nanping city and Jianyang city, are slated for completion in 2012 and will each have a designed treatment capacity of 600 tonnes per day.

The contracts are secured by the group's wholly-owned subsidiary C&G Environmental Protection International Limited (C&G EPIL) for a concessionary period of 30 years.

C&G said the costs will be fully funded from internal resources and borrowings at the project companies' level.

'We are eager to leverage on our early mover success and secure more quality waste-to-energy (WTE) projects in the PRC,' said Lin Yan, group executive director. 'Backed by strong government support, technological know-how and management expertise, we are in a favourable position to gain a strong foothold in the growing PRC renewable energy sector.'

With the addition of these two new projects, C&G EPIL will have a total of nine WTE projects across four provinces - Fujian, Hubei, Hebei and Liaoning provinces - in China with a treatment capacity of 9,000 tonnes per day for municipal solid waste.

According to the group, C&G EPIL currently ranks among the top three WTE players in China based on its secured treatment capacity.

The WTE firm was recently acquired by the group for the 563.7 million yuan transaction through the issue of new shares.

This move thrust C&G Industrial into the energy sector. The group, which has been battling with declining margins and sales in its core textile business, is open to the option of divesting its textile business if there is an offer with a good price.

C&G general manager of corporate finance Eddie Mak told BT yesterday that the group has spoken to interested parties but nothing has been firmed up yet. Any divestment would have to be at a consideration of not less than the net tangible assets of the business, excluding cash, he said.

But contributions from C&G EPIL starting from this quarter will not result in an initial jump in group earnings as the WTE firm has only one plant in Jin Jiang city that is commercially operating, and which earns an annual profit of close to 10 million yuan.

C&G EPIL's contribution to group earnings will gradually increase as phase 2 of the Jin Jiang plant is completed in the second quarter, the construction of three other plants are completed by the end of this year and another three plants by 2011.

 

2 more bot ; cum to 9 bot projects = 3.3m t per year.

China has 150mt per year waste and growing @ 8% annually


existing 7bot already need 2.7b rmb funding, so tis company will become very very leverage. payback period for project is around 8years. and huge potential to be multi baggers if can manage the debts well


take care

 

just like in 2005 stage

 

think already hit 40; cg has long way to catch up. wrong timing, probably 1q2010 will tell

 

coma stage

 

 

 previous owner stake has increased substantially from 38.88% stake to now 70.6%, existing shareholders stakes really diluted. i am still holding at a loss.


 

No. of Shares held before the change	181,968,001
As a percentage of issued share capital	38.88 %

No. of Shares which are subject of this notice	505,023,354
As a percentage of issued share capital	107.91 %

Amount of consideration (excluding brokerage and stamp duties) per share paid or received

0.24

No. of Shares held after the change	686,991,355
As a percentage of issued share capital	70.60 %

 

Should BUY? HOLD? SELL?Anyone can advise.

 

So, we should BUY? HOLD? SELL?

christan      ( Date: 25-Jan-2010 16:05) Posted: back to issue price, any takers?

 

What happen to this counter?

 

back to issue price, any takers?

 

disappointing yesterday, hit high 31 and then closed lower

 

shd be on par with thinkenv; 37 here we come

 

very steady

 

cum now... egm coming

 

think env now 39, shld follow...

ppl shld q in the EGM why the no of new issue of shares greater than existing outstanding shares. value destroyer for all current shareholders; valuation too high for ne business or the issue price too low @ 24. NTA drops drastically after acquisition. shld do buffett's style for coca and now kraft