CIMB in a May 11 research report says: "1Q11 net profit of Rmb65.8 million (+44.5% y-o-y) met Street and our expectations, at 19% of our FY2011 forecast (1Q typically makes up 19-20%).

"Strong contributions from the EPC portion (Rmb262.6 million sales) stood out, with 40% attributable to its Marafiq contract in Saudi Arabia. We are keeping our earnings estimates and target price of 98 cents, still set at 14x CY12 P/E (3-year forward average).

"Other than the faster-than-expected contributions from its higher-margin Marafiq contract in Saudi Arabia that should feature prominently in FY2011, BOT contract awards in China and possibly in Taiwan are expected to provide stock catalysts. MAINTAIN OUTPERFORM."