Results are quite promising actually. They did lost 7 cents per share but if they keep following this (familiar) road like they've done in the past, profitability can be achieved back soon. Perhaps as soon as in the next 2 quarters?
As per the previous contract announcements they are bidding on new projects more prudent (like in the past) and they won't bid in the foreseeable future on riskier BT projects. These BT projects can be more profitable but they also block working capital for quite a long period of time. The BT projects carry more risk because unplanned project changes and issues can come along the way.
For that matter it's good that the Ordos BT project is now pretty much completed and that they've received a payment of $11.5 million in the second quarter. That money can be used to pursue several smaller projects. In the current quarter they also received a $7,3 million payment from Ordos.
There's a lot of work left in the BT Indian projects in Bihar but I'm sure they do whatever they can to continue to make progress.
Another good point is that they received an advance payment for the Baoding property of roughly $9 million which means that there's buyer's interest. The finalization of the sale is expected before the end of 2013 and will free up $18 million which can also be used to pursue several smaller projects.
So balance wise the second quarter was a good one and the third and fourth quarter may be even better. I'm not sure how the market will react to these quarterly results. Perhaps the market would like to see profitability first before it recognizes the new path Tri-tech is progressing on? Markets do look ahead and I can see back some good things on the horizon. I'm sure it will take much more time for the market to grant a (much) higher valuation to the undervalued shares and that's why I think the risk/reward situation looks pretty good from here. I'm keeping my recently build position with conviction.
...I am not gonna do any cartwheels, but on the whole, it does appear to me that they are executing on the objectives the co. has outlined previously...fewer capital intensive and slow-pay projects...my GUESS is that the market may like it...GL