At MC $121m currently, the market really has to ask whether SPS has traction and grow. In other words, the issue at hand is whether decentralisation or distribution model of waste water treatment going to take off or not? SQ and IC are legacy businesses that started negotiations five years back. We now know that construction and that system integration model is not the future of FLC. It's a crowded space with many causes for delays. The future IMO is in SPS.
The current situation is this SPS came from a negligible sales in 2017 to guidance of $32m in FY2020, from one wholly owned plant in Changzhou to add "two assembly plants in China in Yiyang and Panjin in conjunction with our partners." The bulk of the $32m is from MABR.
Does the market want to believe this sentence, "But we continue to see an increasing amount of MABR references commissioned in China." That's the million dollar question at hand. All IMO and DYOR.
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