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RINO International Corporation Message Board

  • nantelmichel nantelmichel Oct 24, 2009 1:44 PM Flag

    From Chinavestor

    Oct. 24, 2009 - Chinavestor) Not sure if investors noticed an important development concerning the future direction of Rino International Corp. (NASDAQ:RINO). While RINO is known for its flue gas desulphurization equipment business, the latest announcement of a significant sludge treatment contract with the Dalian municipality, valued at $18.4 million, is worth paying a close attention to. Here is why. Should Rino Int. (NASDAQ:RINO) enter the sludge treatment market right, a market 10 times the size of Rino's current potential market, it will change the landscape for this mid-cap NASDAQ player. Let's take a look at the numbers.

    The size of flue gas desulphurization market is estimated somewhere between $1.0-$1.5 billion. Add to this the high temperature anti-oxidation systems and other industrial pollution filter systems RINO manufactures, we're talking of a market estimated somewhere between $2-$3 billion a year. This is the field Rino International (NASDAQ:RINO) has been operating.

    The latest sludge deal in Dalian is not only big on its own, $18.4 million vs. $176.5 million total revenue guidance for 2009, but it marks Rino's entry into a potentially huge market. The size of the waste water treatment market is estimated to be in the $30 billion range. This is ten times the size of the current market where Rino International (RINO) operated.

    According to the press release the technology Rino is catering to Dalian municipalities was developed in cojunction with the Dalian University, "Dalian University of Technology has submitted a patent application in China for the Rotary Drum Film Dryer technology in China. Based on its exclusive license agreement with Dalian University of Technology, Dalian Rino, RINO’s subsidiary in China, will pay an ongoing royalty of approximately 5% of sales to Dalian University"

    It looks as if Rino has laid a foundation for a multi year growth path by diverisying into the potentially huge sludge market.

    But investors are interested in quality earnings and not just potential. While potential is important, what separates darling from the dogs is companies that DELIVER earnings. By looking at revenue and earnings growth for Rino International (NASDAQ:RINO), the company has been delivering.

    With a backlog of projects for Rino estimated to over $80 million by the end of August, 2009, the question is not potential but whether Rino is up for the task of increasing capacity. Should RinoRino International (NASDAQ:RINO) to reward the risk takers.

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    • excellent research, someone please check on the Institutional Shareholder list?____

    • We have studied China environmental sector and we like RINO. Is it true that FIDELITY is listed as a shareholder as of most recent quarterly filing?

    • That link (http://english.dda.gov.cn/2009/06/06/878.shtml) to the Dalian Development Area's wasterwater treatemnt plant doesn't say it's ONLY for industrial wastewater, nor did anyone on this message board say it's ONLY for industrial wastewater! Who ever claimed that?

      But know a little about what you are investing in, what the company is selling. Dantman's claim that the the byproducts can be turned into fertilizer and sold to offset operating costs as justification for his "win-win" concept is a stretch. It's difficult, and in a place like the DDA with petrocehmical industries it will be diifcult. It seems like the reason they want to use the system is to conserve water - recovering costs from feertilizer production isn't in their plans. I suspect that's because the dewatered sludge will have too many heavy metals to be useful in that regard.

    • the link you provided.

    • > where does it say it's only for industrial wastewater?

      What is the "IT" you are referring to?

    • yes, you are on track. The WW treatment market is in an explosive mode b/c it's mandated by the PRC gvmt. Rino's DWM system is not only cheaper to install but also saves more water/energy in the long run. Plus the byproducts can be turned into fertilizer and sold to offset op. costs. That's a win-win concept. I don't see why it can't capture a good piece of that market

      "RINO's DWM sludge treatment technology, using superheated steam to dehydrate sludge, is able to reduce the water by 10% more than other treatment technologies that are now widely used in the PRC. In addition, the Company believes that the installation costs of its sludge treatment system are approximately 50% less than those installed with imported products and the daily operational costs are approximately 45% less.

      The Chinese government recently promulgated a new regulation requiring at least 60% of municipal wastewater to be treated by 2010, which is expected to significantly increase the demand for proper sludge processing in China over the next several years. To achieve this goal, the government plans to increase the capacity of sludge processing to 30 million tons per year."

      • 1 Reply to dantman859
      • > Plus the byproducts can be turned into fertilizer and sold
        > to offset op. costs.

        I would consider that more lip service than fact.

        The market served by RINO's industrial clients will have heavy metals (zinc, manganese) in the waste water which is going to make that tough. We've got companies in the US making fertilizer from sludge from municipal clients (Milorganite, Oceangro) and they have challenges with heavy metals just from those sources, let alone trying to do that with steel mill waste water.

    • RINO is an excellent investment. If anyone wants to short a stock, they should short FNM, FRE or others.

    • Great article. All true.

    • With a large backlog, great future potential for expansion in a growing niche.....Seems to me, a PPO is the quickest, most convenient way to secure the funding in a timely matter, sooner than later. In the near term, that's what I'm expecting, and a near term storm cloud over current stock prices. Let's get it over with, and resume the growth path!!!

    • Good info... thanks! Maybe we've based here and new highs are coming soon...

 
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