Sound Global

Sound Global: Stanchart initiates Outperform with $1.15 target price. Highlights water treatment firm's extensive R&D & technical expertise bode well for growth. Adds its project network in China's 2nd & 3rd-tier cities enables it to benefit from region with lower penetration rates. Strategy of taking on build-operate-transfer projects also ensures sustainable earnings stream & allows better differentiation from rivals focused on engrg, procurement, constructn, which has low entry barriers.