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PC1 [BUY +34.0%] - Planned private placement will finance growth - Update

We raise our target price 0.8% and maintain our BUY rating for PC1 with 34.0% total return. Weak Q1 results (revenue -23% YoY and NPAT -40% YoY) were due to a lack of contribution from real estate, which we expected. Q1 is also seasonally low. We therefore maintain our profit forecast for 2017 and for strong growth in 2018. A USD20.5 million private placement (17 million shares, ~18% dilution) will finance two more hydro power plants and M&A of an electrical equipment producer.