Have you read this article, I got it from Matt Gaffney of http://seekingalpha.com/article/81775-sinoenergy- downstream-cng-player-with-upside-potential? source=d_email .

Here you go:

Sinoenergy: Downstream CNG Player with Upside Potentia

Matt Gaffney
Sinoenergy (SNEN.O is a China based \'downstream\' player in the CNG market. In layman\'s terms, this company makes compressed natural gas containers, delivery vehicles, conversion kits and builds and operates CNG filling stations. Last quarter, the company reported quintessential China-like results such as year over year revenue growth of 194% and net income growth of 712%. For the first 6 months of fiscal 2008, net income was $5.2 million, or $0.14 per diluted share, up 252.1% from $1.47 million, or $0.06 per diluted share, in the six months ended March 31, 2007. Given the secular growth potential in this industry, Sinoenergy looks well positioned for continued expansion.

Strong economic growth and rising income levels have increased demand for motor vehicles and transportation fuel, making China the second-largest energy user in the world. Vehicle related pollution is increasingly becoming a significant problem in China’s cities, prompting the Chinese government to aggressively promote the use of natural gas. The use of CNG as a fuel significantly reduces the cost of operating a vehicle. Analysts estimate that at current market prices, switching from gasoline to CNG can reduce fuel costs for a bus or a taxi by more than 40%. An industry projection made by PetroChina (PTR) estimates that there will be more than 1,000 retail CNG filling stations and more than 300,000 CNG vehicles in China before the year 2010.

While China is rich in natural gas resources, it accounts for only 3% of fossil fuel consumption in China, compared to 20% globally. As a clean energy option, development of natural gas as an alternative fuel is a priority in the National Development and Reform Commission’s 11th five year plan. Officials predict that China’s natural gas demand could reach growth of 20% plus CAGR. The Chinese government has strongly encouraged the State Owned Enterprises to invest aggressively in the development of China\'s natural gas distribution infrastructure. The PRC government has recently offered tax incentives for foreign companies which invest in the natural gas processing business.

In Wuhan City, Sinoenergy has received government approval for the tax incentives, and the company plans to apply for these benefits in the other areas in which it will operate. In addition, according to a Fuel Tax Regulation proposed by the Chinese government, natural gas vehicles are expected to be treated under a half-tax bracket compared to vehicles powered by gasoline or diesel. Part of the Sinoenergy CNG filling station network plan will be to operate 23 stations in Wuhan City, which is the largest transportation hub and trade center in China\'s inland.

Sinoenergy has recently traded at the lower end of its 52 week range which could be the result of the delayed rollout of station openings in part due to obtaining government permits which has become a more comprehensive process. This weakness presents an opportunity to research this small company with large opportunities.