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"It’s hard not to be intrigued by the investment potential of China," says Richard Moroney. In Dow Theory Forecast, he highlights a trio of funds and a China infrastructure stock.

"China is soon expected to overtake Japan as the world’s second-largest economy and Germany as the leading exporter.

"Aided by aggressive ?scal-stimulus efforts, rebounding consumer demand has sparked increased spending among China’s 1.3 trillion citizens, who represent nearly one-?fth of the world’s population.

Jinpan International Ltd. (JST) is a China-based provider of industrial electrical equipment. Its products include transformers, switchgear, unit substations and line reactors. The company’s main product line consists of cast resin transformers used in the construction and infrastructure sectors. JST also supplies products for the wind-power application market internationally, a sector primed for high growth in the coming years.

With growth in China infrastructure driving demand for electrical transformers, and quality certifications driving expansion in US markets, Singular Research is initiating coverage on Jinpan International (JST) ($30.25) with a BUY rating. Key excerpts follow:

Investment Thesis 

Installed electricity capacity in China grew 18.8% in 2007 after growing 25% in 2006. The government has earmarked $65 billion for investment in the medium voltage network system, which is the market served by JST.

Jinpan International designs, manufactures, and distributes cast resin transformers for voltage distribution equipment in China and other various countries around the world. Jinpan's cast resin transformers allow high voltage transmissions of electricity to be distributed to various locations at lower, more usable voltage levels.<!--more-->

This company is growing tremendously, but no one follows this stock. Take a look at some of the numbers first and then I will discuss a few other points of interest: