Stock Buy Call: China Petrotech from SIA Research

China Petrotech Holdings Ltd may extend gains after SIAS Research initiated coverage of the stock with a "buy" rating and a target price of 0.925 sgd because of the company's dominant position in providing technological services for upstream activity in the Chinese oil and gas industry. "With ongoing exploration activities, China Petrotech is on course to ride along this energy exploration trend," SIAS said in a note to clients. "The company is strong financially. Its operation yields strong margins at gross and net levels, and is cash-generating. The balance sheet is in net cash and has no debts. Its return on equity ranks among the highest when compared to its peers." China Petrotech closed 0.025 sgd higher at 0.70 yesterday.