Yes Mickem I agree. I initially thought this was the next big Chinese contract and so was relieved.
However, it appears to be just Stage 2 of the South Beijing wetland project, which we were told about in early 2018. It has been reduced from $8 million to $7 million and will be completed in November rather than October. The annual report said we had $10 million of work in progress in China (Stage 1 of the wetlands project was completed in June), but this announcement means contracts being worked on in China this year are reduced to $9 million.
We are again told there are a number of large projects being worked on in China which are "expected to result in significant sales in the next 8 months", but nothing on possible contract timing or size. There are three large projects outside China on which we have submitted pricing, with decisions likely "in the next few months".
I fear we may well go through a lean patch in the Northern winter unless a sizeable contract is announced soon. The second half will need to be very good to reach the expected revenue of $27-30 million for the full year 2018-19.
PET Price at posting:
41.0¢ Sentiment: None Disclosure: Held
(20min delay)
