Sound Global

Sound Global: MOU for a BOT project Lianyungang City, Jiangsu Province. Sound Global will build and operate a wastewater treatment plant and a water supply plant, both with capacities of 300k tons/day. Sound Global will also design and lay the network of pipes for the collection of wastewater and the supply of water which will span approximately 20km. Total investment is ~RMB1.4bn with a concession period of 30 years. This is Sound Global’s largest BOT contract to date, and will double its current total capacity for its portfolio of BOT projects. The transaction is expected to contribute positively to the net earnings per share and the net tangible assets per share of the Company for the current FY. Share price has taken a beating since the company called off its proposed dual-listing in HK. While technical indicators still looking weak, new order wins could provide a positive lift for the counter.