Standard Chartered starts Sound Global (E6E.SG) at Outperform with $1.15 sum-of-parts target price, says Dow Jones. 

Says China-based water treatment firm’s extensive R&D, technical expertise bode well for growth; “its project network, which mainly runs through China's second- and third-tier cities, where penetration rates are lower, puts it in a position to benefit from the growth of local economies.”

Says strategy of taking on build-operate-transfer projects ensures sustainable earnings stream, allows better differentiation from rivals focused only on engineering, procurement, construction; “the EPC model has low entry barriers.” 

 

Shares +1.2% at $0.865.