1.

China: Energy: Alternative Energy

China: Energy: Alternative Energy

China: Energy: Alternative Energy

Solar Power: Cash is king; Add TSL to Conviction Sell, U/G SOLF

Growth ambitions overshadowed by cash flow deterioration

We believe the demand outlook for the solar industry remains positive as

indicated by better-than-expected ASPs and rising order visibility for 2H08

and 2009. We believe the announced subsidy cuts in Germany and

potential reduction of the feed-in-tariff in Spain are unlikely to be a major

issue for Chinese solar companies thanks to their diversifying geographic

mix. However, we believe the industry is facing growing concerns over

free cash flow generation in 2008 due to: (1) rising capex requirements and

raw material prepayment, and (2) growing difficulty in capital-raising due

to a tougher equity funding environment and banks' tighter lending policy.

2. Asia-Pacific Morning Summary

6-26

Focus Items

China: Energy: Alternative Energy: Solar Power: Cash is king; Add TSL to

Conviction Sell, U/G SOLF

Hyundai Engineering & Construction (000720.KS): Korean E&C consortium signs

US$10.8 bn deal with Kurdish gov't 2

AsiaInfo Holdings (ASIA): New CU contract highlights opportunities post the

restructuring

3

3. China Daily Insights 6/26

Today’s focus

China: Energy: Alternative Energy: Solar Power: Cash is king; Add TSL to Conviction Sell, U/G SOLF

AsiaInfo Holdings (ASIA): New CU contract highlights opportunities post the restructuring

Guangshen Railway (A) (601333.SS): Balanced risk/reward; upgrade A-share to Neutral

Daqin Railway (601006.SS): Value beginning to emerge

Hyundai Engineering & Construction (000720.KS): Korean E&C consortium signs

US$10.8 bn deal with Kurdish gov't 2

AsiaInfo Holdings (ASIA): New CU contract highlights opportunities post the

restructuring

3

3. China Daily Insights 6/26

Today’s focus

China: Energy: Alternative Energy: Solar Power: Cash is king; Add TSL to Conviction Sell, U/G SOLF

AsiaInfo Holdings (ASIA): New CU contract highlights opportunities post the restructuring

Guangshen Railway (A) (601333.SS): Balanced risk/reward; upgrade A-share to Neutral

Daqin Railway (601006.SS): Value beginning to emerge

AsiaInfo Holdings (ASIA): New CU contract highlights opportunities post the

restructuring

[此贴子已经被angelboy于2008-7-29 9:01:22编辑过]