United Envirotech (U19.SG) fails to build on initial gains, flat at $0.49 vs +2.0% at $0.50 earlier. Pullback not surprising as stock up as much as 23% this week to 11-month high of $0.51, says Dow Jones.

Current volume mere fraction of daily average of 61.3 million shares this week, suggesting demand intact, supported by China-based water treatment firm securing contract to build plant in Sichuan province’s Neijiang City.

“(This is) a piece of positive news for UE, the third project secured since March, helping to boost its EPC (engineering, procurement, construction) revenue,” says DMG, which has Buy call, reviewing $0.53 target.

Kim Eng Securities, which has no rating, says valuation still undemanding at 10.4x FY11 P/E, 7.9x FY12 P/E. Orderbook quotes tip $0.48-$0.51 trading band.

Project estimated to cost RMB200 million ($39.7 million), expected to be completed by September next year.