Written by The Edge    
Tuesday, 02 November 2010 11:47 
 
Sound Global (E6E.SG) +1.7% at $0.890 after firm says it signs plant project agreement for treatment of industrial, domestic sewage in Jiangsu, China, according to Dow Jones.
Build-operate-transfer project scale at 60,000 tonnes/day; phase one investment about RMB130 million ($25.1 million), operational service tariff is RMB2.38/tonne with 28-year concession period.

While contract not expected to impact FY11 earnings, deal encouraging as further enhances company’s credentials in China’s water business space, which Daiwa, in recent note, says expected to show 4x surge from US$31 billion ($40 billion) in 2009 to world’s largest market at US$124 billion in 2025 (14% of global market), with Beijing encouraging use of private capital to counter chronic undersupply.
But Daiwa says participation in space heating up with large players such as Suez, Veolia, SOEs making presence felt, along with Japanese firms; company’s outlook dependent on how it fares vs such competition. September high at $0.91 likely near-term cap.