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To: donpat who wrote (718)	12/16/2005 9:24:02 AM
From: donpat	Read Replies (1) \| Respond to of 807

Suntech Priced With 2006 P/E Ratio Of Around 28 Friday December 16, 5:10 PM By Keri Geiger Of DOW JONES NEWSWIRES HONG KONG (Dow Jones)--Investor enthusiasm for the fast-growing alternative energy sector is driving the shares of solar panel maker Suntech Power Holdings Ltd. (STP), which this week had the largest listing for a private Chinese company on the New York Stock Exchange so far this year. The success of Suntech's initial public offering, with the shares up 38% since they began trading Wednesday, also suggests there will be strong demand for Chinese private sector IPOs next year. "We expect a strong pipeline of mid-cap new issues from China next year, and the tech sector will continue to be a significant contributor to the volume," said Vikram Malhotra, CSFB's head of equity capital markets in Asia Pacific. Analysts are bullish on the solar energy sector, particularly in China. Macquarie said in a research report that governments across the globe are promoting solar energy as an environmentally friendly and renewable alternative energy source. At present, most of the demand is from Europe, with potentially more growth coming from California, China, Spain and Italy. While more than 80% of Suntech's products are sold overseas, the company is also tapping into the growing demand for solar power in China, which should increase substantially because of recently introduced legislation. Chi Zhang, director of Cambridge Energy Research Associates in Beijing, said that China recently passed a renewable energy law that aims to supply at least 15% of energy output in the country from alternative energy sources such as solar, hydro and wind power. On a global scale, the solar panel industry's annual turnover will grow to $18.5 billion by 2010 from $6.5 billion in 2004, according to U.S. based energy consultancy Solarbuzz Inc. Suntech's strong debut follows a global wave of successful alternative energy company IPOs in recent months. SunPower Corp. (SPWR), a California-based solar cell maker, jumped 41% on its first day of trading in November. Shares in Q-Cells AG (QCE.XE), a German provider of solar power technologies, are up 40% since their trading debut in October. Suntech's low-cost manufacturing base in China also attracted investors to its IPO, as did the fact that there is ample room for solar energy to grow in a country that currently relies heavily on coal for power. The US$455 million IPO priced at $15 per American Depository Share, at the top of the indicated range. Its shares rose 41% on the first day of trading. A 15% over-allotment option was exercised in full after the close of trading in New York Thursday. Credit Suisse First Boston (CSF.YY) and Morgan Stanley (MWD) acted as bookrunners on the deal. Suntech priced with a 2005 price-to-earnings ratio of 28, comparable with Taiwanese solar panel company Topco Scientific Ltd. (5434.TW), which is trading at 25 times. Suntech's revenue surged to US$85.3 million in 2004 from US$3 million just two years earlier. sg.biz.yahoo.com