DMG cuts Sound Global target to $0.90 vs $1.08

Stock Name: SoundGlobal
Company Name: SOUND GLOBAL LTD.

Research House: DMG

Price Call: BUY

Target Price: 0.90

DMG & Partners has cut its target price for Singapore-listed Chinese wastewater treatment firm Sound Global (SOGL.SI) to $0.90 from $1.08 but kept its buy rating.

Sound Global reported net profit of 175.4 million yuan in the first half of the year, 46% higher than the year ago period, which was in line with DMG’s expectations.

“Outlook for the sector remains positive, with growth likely to continue in the form of building new water treatment plants, upgrading of existing water treatment plants and outsourcing of operation and maintenance of treatment plants to third parties like Sound Global,” said DMG in a report.

The brokerage said it expects Sound Global’s order book to remain strong at about 2.4 billion yuan, out of which 1.8 billion yuan is from China.

At 9:50 a,m,, shares of Sound Global were 3.2% lower at $0.605.