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]