SIIC Environment

[owq]

I was also looking at SIIC and China Everbright and wondering whether the risk is worth it. As buddies have pointed out, these stocks have negative cashflow and high debt. Hence they probably rightly deserve the current low valuation. However, they also managed to increase their profits at quite a good rate over the past few years by clinching more projects. The sustainability is a cause for concern and if financing dries up shareholders will bear the brunt of it so I'm not too comfortable investing large amounts.

Since SIIC is also HK listed, maybe can also compare with its HK peers as well. I like CK Infrastructure for its positive operating cashflow (I'm vested indirectly through CKH) and relatively low debt, although its exposure is more towards UK assets and not Chinese assets.