i have to agree with gray when he says that their clients have to invest regardless of the economic circumstances. this is not discretionery. if you have water ingress in a major infrastructure asset, youd better fix it, fast.
having a quick look at the potential clients they are dealing with, its difficult to disagree:
various chinese government bodies various middle east commercial and government entities Metronet/London underground (have a massive budget for works). Hong Kong Mass transit rail.
the big ticket items are likely to get more investment by governments in downtimes and the commercial enterprises invest through the cycle. they are looking after assets that have life spans of 30-50 years. it matters little that we are in a temporary downturn and the owners usually sort the finance to invest in maintenance before going into the deal.
for example, metronet already commit to a budget of x millions spent each day. they knew what would be required when they went into it.
let me know what you come up with. im guessing that this close to the 1/4 report, they will tell you all will be revealed shortly.
i really only have one concern....cash. im confident that this business will be fine in 12-18 months if it can sign something major before the cash runs out.
HTI Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
