Sinotel to benefit from potential huge capital spending

Phillip Securities starts Sinotel Technologies at Buy with $0.27 fair value, implying FY08 P/E of 3.95X, FY09 P/E of 3.44X. Expects China-based wireless telecom applications provider to benefit from potential huge capital spending by country's telcos as sector consolidates to upgrade infrastructure, improve competitiveness, prepare for 3G rollout; "Sinotel is well positioned to benefit from this restructuring given its good track record, long-standing working relationship with the telecommunication carriers and technological experience."