Sinopipe: SIAS initiates with an Increase Exposure rating based on an intrinsic value of $0.40. Likes Sinopipe for its favorable industry trends and unique business strategies. Note that Co. is currently trading at an attractive discount of 4.7x FY2010F P/E and 0.51x FY2010F P/B compared to its peers' average of 27x P/E and 9.2x P/B….
Add that fundamental drivers include booming plastic consumption. Highlight positive industry factors such as rapid urbanization of China and superior properties of plastics over other materials are impelling the demand for plastic pipes. Project plastic usage to grow at a CAGR of 18% from FY2009 to FY2013F…
Note that Sinopipe is benefiting from industry consolidation in China, support from its business associates, and its unique strategies in securing more clients with its dispersed production facilities.
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