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Wednesday, December 23, 2009

Good Opportunities in Chinese Water Treatment Sector: Duoyuan Global Water Inc. & Tri-Tech Holding Inc.


Chinese population is suffering important shortage of fresh and potable water because of severe water pollution and more than 70% of China's rivers and lakes are polluted. The Chinese central government has to make important efforts to improve water treatment continually building and upgrading facilities all around the country and using regulatory and economic instruments.

Four Trillion RMB Stimulus Package includes about 370 billion RMB to be used for rural infrastructures including water supply and about 350 billion RMB to be used for environmental protection, including water treatment. Regulations are being constantly improved and more strictly and so called Five-Year Plans are very focused on the water treatment issue. National environmental protection industry has to clean up existing pollution and to prevent harmful emissions.

It is a good moment to remind that during the ending year investors welcomed to the public exchanges two Chinese companies from the emerging water treatment sector. Duoyuan Global Water Inc. is a leading China-based water treatment equipment supplier while Tri-Tech Holding Inc. is an eminent Chinese water engineering, consulting, and management company. Both companies are located in Beijing.

Duoyuan Global Water Inc. counts with more than 20 years of experience in producing circulating water systems, providing equipments for the most advanced water circulating system: filters, grids, ultraviolet sterilizers, ozone generators, scale removing machines, sand removing machines and sewage discharging machines.

Tri-Tech Holding Inc. works with local and regional governments and institutions in China to design and implement systems to monitor and manage natural and municipal water resources. Since the beginning back in 2002, they implemented more than 200 projects in provinces, municipalities and autonomous regions.

Both companies are very interesting and perspective investment opportunities being well managed and with strong total revenues and net incomes.

LINKS:
DUOYUAN GLOBAL WATER:
http://www.duoyuan-hq.com/
TRI-TECH HOLDING INC.: http://www.tri-tech.cn/en/default.asp

TICKERS:
DUOYUAN GLOBAL WATER (NYSE: DGW)
TRI-TECH HOLDING INC. (NasdaqCM: TRIT)

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