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Hanwei Energy Services Corporation (TSE: HE) Builds a Green Business Portfolio

This small capital stock from Vancouver, BC has extensive manufacturing facilities in China. Its major source of current revenues relate to the construction and marketing of plastic tubes reinforced with fiberglass. These products are used by the oil industry for pipelines, and the company can supply 2,800 kilometers of such pipelines a year. The stock has traded at less than $5 a unit during the third week of March 2008, creating an extraordinary North American investment opportunity.

A specific strength of this company is its branching into pollution control and alternative energy. One of its manufacturing sites in China is dedicated to helping the coal industry manage its emissions better. This is of strategic importance given China’s world-leading coal reserves, and its dependence on this traditional form of energy. Investors will realize that the company’s foray into pollution management for the coal industry is timely, given China’s declared priority for improving air quality in its cities.

The company has invested in wind energy as well. It has acquired a domestic company based near one of its manufacturing plants in China for this purpose, and has also licensed the technology needed to make turbine blades for wind generating units. The company therefore presents a reassuring balance between present and future energy-industry business prospects, which have grown significantly after its recent entry into the vast Indian market. The company has licensed its technology for fiberglass reinforced plastic pipes to a domestic manufacturer.

The Net Profit Margin of the company has been just over 20% on a Trailing Twelve Months basis. Return on Average Assets has been 12.61% during this period.

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