China's Duoyuan Global Water releases 3Q09 results, shares down

Beijing, China-based Duoyuan Global Water released its unaudited financial results today for the third quarter of 2009, as investment firm Piper Jaffray reiterated its “overweight” rating on the company’s shares.

The domestic water treatment equipment supplier specializes in products related to the steps of the water treatment process, including filtration, water softening, water-sediment separation, aeration, disinfection and reverse osmosis.

The company’s stock was down 5.34 percent at $36.51 in afternoon trading. The company has a 52-week range of $20.40 to $43.65.

It posted stronger than expected third quarter top- and bottom-line results, Piper Jaffray said, aided by the stimulus positively impacting the company’s sales. Piper Jaffray increased its price target from $45 to $49.

Duoyuan Global Water (NYSE:DGW) also recently launched a national television advertising campaign this quarter, intended to boost its brand awareness and increase its presence in larger-scale projects, Piper Jaffray said.

The investment firm predicted government spending on water infrastructure in China would continue to be strong in 2010.

Duoyuan Global Water’s revenue increased 31 percent to RMB 255.2 million ($37.4 million) from RMB 195 million in the same period last year.

Its operating income increased 31 percent to RMB 95.7 million ($14 million) compared to last year’s RMB 73 million. Net income also increased 23 percent to RMB 73.4 million ($10.8 million) from RMB 59.6 million in the comparable period of 2008.

The company went public in the second quarter of 2009, raising $88 million (see Pound-for-pound, cleantech deals have a British twist and Cleantech may have seen the worst, rebounding to $1.2B in 2Q09).

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