GS 高盛：每日中国报告

China-Daily-Insights 10.22       10页

 

Today’s focus
China: Energy: Alternative Energy: Solar Power: Forget the noise and focus on LT winners; Buy STP
China: Telecom Services: MII vice minister acknowledges restructuring work as in progress
Yantai Changyu Pioneer Wine (B) (200869.SZ): Earnings growth remain intact in 3Q07
Headline news
China Won't Rush to Alter Exchange Rate, Central Banker Wu Says (Bloomberg)
China's Communist Party Congress ends (Yahoo)
Minerals sector opening up further (China Daily)
China's state-owned property companies almost double profit in first nine months (Xinhua)
Funds must be evaluated for risks before sale (Shanghai Daily)
China: Energy: Alternative Energy: Solar Power: Forget the noise and focus on LT winners; Buy STP, Cheryl Tang
• Our framework for determining long-term success: STP the winner: Although the case for investing in Chinese solar companies is compelling, performance hasn’t always matched expectations. This highlights the need for investors to better understand the difference in quality among China solar companies. Accordingly, we have developed a matrix of key drivers we believe would help determine the potential for long-term success in this burgeoning sector. This will enable investors to filter out the “noise” that often drives sentiment in shares, better identify companies most likely to emerge as world class performers, and reduce the possibility of being wrong-footed by inevitable blips in performance. We conclude that Suntech has the best prospects of becoming a world class solar power producer whereas Yingli Green Energy and Trina Solar are emerging contenders.
• Upgrading Suntech Power to Buy, US$52 TP implies 24% upside: We upgrade Suntech Power (STP, US$46.47, Neutral) to Buy from Neutral and raise our 12-month DCF-based target price to US$52 (from US$39) given the upside risk to 2007 earnings as well as increasingly upbeat long-term growth prospects. We also expect shares to regain ground relative to peers which have risen sharply recently but have less compelling growth profiles. We maintain our Neutral ratings on Solarfun Power (SOLF, US$13.00,