BEIJING ( TheStreet) -- China's 3G mobile network coverage, which was initiated in 2008, has now entered a more advanced stage with the total subscriber base surpassing 18 million users. The next stage of growth will be driven by expanding coverage across smaller cities, towns and tourist locations across the country.

The final stage of China's 3G infrastructure implementation requires setting up a large number of base stations and associated equipment. In turn, this will drive demand for cables and wires.

We have identified two cable and wire manufacturers that could benefit from this growth. They are Fushi Copperweld ( FSIN) and Lihua International ( LIWA). They are trading at attractive forward price-to-earnings ratios of of 8.09 and 7.72, respectively.

Innovation Must Start in China (Forbes)

In comparison, American counterparts Coleman Cable ( CCIX) and Encore Wire ( WIRE) trade at forward PEs of 15.25 and 55.85, respectively.

Fushi Copperweld

Fushi Copperweld is a leading global producer of bimetallic wire products, a cheaper alternative to more expensive solid copper wires. The Company sells copper-clad aluminum (CCA) and copper-clad steel (CCS) products to customers worldwide that operate primarily in the telecommunications, electrical utility and transportation industries.

During the quarter ended March 31, the company reported revenue of $59.5 million, up 68.9% from $35.3 million in the same quarter a year ago. Net income more than doubled, to $7.4 million from $3.1 million in the first quarter of 2009.

On April 29, the company announced that it had completed the expansion of its Dalian facility to produce an additional 8,200 metric tons of production capacity per year for its patented Copperweld CCS wire. This would result in total annual wire and cable production at its Dalian factory of 48,200 metric tons, nearly double the plant's previous capacity.

According to analysts polled by Bloomberg, revenue is expected to be $261 million and $328 million for 2010 and 2011, respectively, representing growth of 43% and 80%, respectively, over 2009 levels.

Recently, brokerages like Roth Capital Partners and Jefferies have given buy ratings to the stock, with price targets of $17 and $16, respectively, indicating 60% to 70% upside from current levels.

Lihua International

Lihua International is a CCA magnet wire producer in China. The Company operates in the bimetallic wire manufacturing industry. Its products cater to wire and cable industries and manufacturers in the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries.

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