NF Energy
NF Energy Saving Corporation (the “Company” or “NF Energy”), based in Shenyang, Liaoning Province, is a China-based provider of integrated energy conservation solutions utilizing energy-saving equipment, technical services and energy management re-engineering project operations to provide energy saving services for China’s electric power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries.
Harbinger Research starts NF Energy as ‘strong buy’
Harbinger Research initiated coverage of China-focused NF Energy Saving Corp of America (OTCBB: NFES) with a ‘strong buy’ rating and a 12-month price target of US$2.00 per share.
In a note, the New York based firm called NF Energy a stable, rapidly growing industrial company in the sweet-spot of Chinese economic development, trading at very low multiples.
Chinese companies and local governments are highly incentivized to control pollution and increase energy efficiency across all operations, which has created a high demand for energy-saving products and services.
The company’s products and services are designed to make the largest industrial concerns and municipalities more energy efficient. NF Energy’s customers include some of the largest electricity producers, petrochemical companies, water supply companies, and municipalities in China, and Harbinger said it sees nothing to indicate its track record of steady margins and more than 40 percent annual revenue growth will abate within the foreseeable future. “We in fact believe that it may accelerate beginning in 2010 once its new facilities become fully operational.”
Despite the recent share price strength, NF Energy is still trading at just 8x its 2008 earnings per share and under 3x the research house’s 2010 EPS estimate. “Given its 40 percent plus organic growth rate, this is a very low valuation,” Harbinger said.
“Furthermore, the company recently released an extremely strong backlog of 2009 revenues, giving us comfort in both our 2009 and 2010 revenue and earnings estimates. We believe a multiple of at least 15x our 2009 EPS estimate is warranted,” it added.
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Other NF Energy articles
Other NF Energy news
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18/05/10 NF Energy Q1 revenues jump 17% on higher product sales
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21/04/10 NF Energy expects to increase revenue by at least 33% in 2010
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13/04/10 NF Energy expects to benefit from Chinese govt policies for energy service industry
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30/03/10 Jason Wang, Independent Director of NF Energy Saving Corp, talks about rising revenues and shares
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12/03/10 NF Energy delivers 22 sets of butterfly valves for US$330,000
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26/02/10 NF Energy expects 2009 earnings to soar 250% as revenues climb 28%
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02/02/10 NF Energy Saving named among Top 20 energy saving companies in China at industry forum
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19/01/10 NF Energy Saving Corp wins US550,000 order for new coal power plant in Zhejiang Province
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05/01/10 NF Energy delivers 24 butterfly valves to Guangzhou water project
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15/12/09 NF Energy Saving Expands GE Alliance with 4 further projects worth US$10 mln/year
