Sino Gas & Energy | (SEH) | Market Panic? Time to buy on fundamentals | BUY TP A$0.30/ps
The recent sell off, which has seen SEH fall ~45% since the A$80m capital raising, is overdone. The fundamental story that attracted us to the company remains unchanged. The stock is trading at 30% of our A$0.30/ps valuation and at a significant discount to its listed peers.
Generally the three main concerns regarding SEH are 1) the lack of revenue from gas sales flowing into SGE accounts due to bureaucratic red tape 2) the potential reduction in gas prices received by SGE & 3) the financial position of its SGE equity partner MIE (1555.HK).
SEH Price at posting:
8.9¢ Sentiment: Buy Disclosure: Held
