Another good READ..................
Newater Technology: Asymmetric Bet On Water Purification
Nov. 29, 2018 11:14 AM ET|1 comment | About: Newater Technology, Inc. (NEWA)
David Krejca
David Krejca
Growth at reasonable price, long-term horizon, long/short equity, research analyst
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Summary
Newater Technology is a Chinese water purification company listed on the Nasdaq exchange.
The company has a debt-free balance sheet and an income statement with an explosive revenue growth.
Valuation suggests the company’s shares are severely undervalued and present an asymmetric investment opportunity.
Investment thesis
Newater Technology Inc. (NEWA) is a Chinese wastewater purification treatment company with rapidly growing sales and operations. As the company has a market under US$100M, its business story and potential are very likely yet not fully recognized. I believe once the company gets discovered by a broader audience, its shares will experience a massive rally.
Source: Finviz.com
Corporate profile
Founded in 2012 and headquartered in Yantai city, Newater Technology is a water treatment company that recently completed its IPO on the Nasdaq stock exchange. Led by a management with 10+ years of experience in the water treatment industry, Newater delivers a broad range of wastewater treatment solutions to a variety of industrial companies. Over recent years, the company’s headcount has risen to and exceeded 200 full-time employees, with the majority working in manufacturing and installation of water treatment equipment. The company holds a number of patents and intangible assets related to the treatment, recycling and discharge of wastewater, which make it capable of providing the necessary expertise and engineering support to various wastewater projects.
Operational development history in brief
Since the creation of the company in 2012, the company’s evolution has been pretty fast. In 2013, the company established its research & development center and started its operations. After a year, the company successfully applied for and was granted several important patents and its products passed ISO 9001 quality management standards. This was followed by an opportunity created by the Chinese government that formulated an action plan for the prevention and treatment of water pollution. In 2016, the company then established a large-scale cooperation with key industrial parks across China and the next year entered a U.S. stock exchange.
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