GS 高盛：每日中国报告 09.25

China Daily Insights 09.25 9页

Today’s focus
Epure International (EPIL.SI) Buy: Building on a multi-year water infrastructure boom; initiate with Buy
Gome Electrical Appliances Holding (0493.HK): Chairman reduces stake but fundamentals intact
Headline news
CSI to launch governance index (China Daily)
China to ease curb on Sino-foreign brokerages (China Daily)
Investors shun savings in favor of wealth schemes (Shanghai Daily)
China issues 30 bln yuan special treasury bonds (Xinhua)
Epure International (EPIL.SI) Buy: Building on a multi-year water infrastructure boom; initiate with Buy, Christina Hee, CFA
• Source of opportunity: We view Epure (EPIL.SI, S$1.96, Buy) as a beneficiary of a multi-year boom in water and wastewater infrastructure demand in China. We think the stock is inexpensive following the recent market sell-off, having fallen 24% from its peak of S$2.45 on April 12, 2007 and 19% since July 24. We view the current share price level as an attractive entry point given potential 12-month upside of 26%. Sector- and company-specific fundamentals remain robust and we consider valuations (18.9X 2008E P/E) to be undemanding given superior earnings growth (2-year EPS