Business Outlook


Rapid Economic Growth Escalated Pollution Problems: China has been
projected to grow by 6% annually from 2008 to 2010. SIAS will continue to see massive rural to urban migration. Rubbish production rises in tandem with the economic growth resulting in some 7,000 garbage dumps of sizes larger than 50 square meters in the suburbs of the four municipalities of Bejing, Tianjin, Shanghai and Chongqing.


Inconsistency in Clinching Project: Zhonghui’s order book visibility remains unclear, with only one project on hand. This problem has been bugging the company for the past few quarters. Indeed, it has prevented the group from enjoying economies of scale in material bulk purchase and labour redeployment that could have occurred if there were regular large scale projects.


Proposed Listing of Baoji: The group has a 42% interest in Baoji Zhongcheng, a machine tooling manufacturing mill based in PRC. The proposed listing of Baoji in PRC might unlock Baoji’s true value.

Target Price 2.5 cents