Sound Global

Sound Global: 1q13 revenues increase 17.2% y/y to Rmb519.3m as the group benefits from the increased contribution from the turnkey engineering, EPC services, as the Group continues to be awarded and fulfilling its EPC projects in China; However, due to a 157% increase in finance costs to Rmb47.0m due to interest expenses related to USD senior notes issued in 3Q2012, earnings dipped 19.5% y/y to Rmb61.5m. Going forward, group focuses on its international expansion, such as Saudi Arabia and Southeast Asia particularly given its huge demand in EPC projects. Apart from that, the group intends to expand its market share in the EPC market and consolidate its leading market position by proactively seeking Sewage Treatment Plant upgrades and improvement projects following the govt's stringent regulatory standards. Sound Global trades at 8.9x trailing P/E, 1.4x P/B.