Shanghai Electric(2727.HK) L/T Winner.

STOCK CALL: Citigroup raises Shanghai Electric (2727.HK) target price to HK$5.50 from HK$4.00 on expectation of more profits from new energy business, overseas orders. Says company's plan to sell US$8.29 billion worth of coal-fired equipment to India's Reliance ADA Group will boost orders on hand by 28%; revenue by US$500-600 million per year (6-7% its FY09 revenue). Notes hedging has been done to mitigate yuan appreciation risk. Says new energy division remains on growth drive; expects revenue of this division would surge to CNY13.8 billion in FY11 from CNY7.9 billion in FY10, underpinned by more nuclear equipment sales. Keeps stock at Buy.