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Tat Hong Clarifies Purchase Agreement with China Nuclear Industry

Story Highlights
  • Tat Hong clarifies its Purchase Agreement with China Nuclear Industry, involving machines for project requirements.
  • Payment terms include offsetting 30% of lease service fees, optimizing cash flow over four to five years.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Tat Hong Clarifies Purchase Agreement with China Nuclear Industry

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Tat Hong Equipment Service Co. Ltd. ( (HK:2153) ) has issued an update.

Tat Hong Equipment Service Co., Ltd. has clarified the nature and payment terms of its Purchase Agreement with China Nuclear Industry Huaxing Construction Co., Ltd. The agreement involves the procurement of machines to support the company’s ongoing projects, with a total value of RMB350 million. The payment terms include an offset mechanism where 30% of lease service fees receivable will be used to offset the equipment purchase, amounting to approximately RMB42 million. The company anticipates that the offset will be completed over four to five years, with the remaining balance covered by future projects. This arrangement is expected to optimize cash flow and does not obligate China Nuclear Industry to increase the offset ratio or provide additional collateral.

The most recent analyst rating on (HK:2153) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Tat Hong Equipment Service Co. Ltd. stock, see the HK:2153 Stock Forecast page.

More about Tat Hong Equipment Service Co. Ltd.

Tat Hong Equipment Service Co., Ltd. operates in the heavy equipment industry, providing tower crane solution services. The company focuses on fulfilling project requirements for various clients, leveraging its machinery and service capabilities.

Average Trading Volume: 219,675

Technical Sentiment Signal: Hold

Current Market Cap: HK$1.25B

See more insights into 2153 stock on TipRanks’ Stock Analysis page.

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