SINGAPORE (Oct 30): OCBC is keeping its ‘hold”call on Citic Envirotech with $1.40 fair value as there is no change to its FY16 forecast even though orders are flowing back.

Citic Envirotech saw its Sept quarter revenue tumble 32.7% to $70.9 million from a year ago, mainly due to 62.9% lower engineering revenue.

Also included in the results was the rebate of $1.9 million; this is to offset the recent 17% VAT that the China government imposed on water treatment income, and should allay earlier fears that the VAT would drastically affect the profitability of the company.

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