China High Speed Transmission 0658

[winston]

DJ MARKET TALK: CHST Down 2.2%; But Nomura Keeps Positive View

1111 [Dow Jones] China High Speed Transmission (0658.HK) down 2.2% at HK$9.27, adding to 2-day, 13.7% fall. weighed by concerns of delayed General Electric orders. Still, Nomura keeps stock as Buy with HK$15.00 target price; remains confident in fundamentals given sizable wind order backlog for FY09-10, improved visibility on traditional products.

Says CHST's heightened concentration on wind sales to Chinese customers should slightly enhance earnings security for FY09, backed by house view China wind demand "relatively insulated" from the global financial crisis. Volume tapers to HK$14.5 million vs HK$147.6 million yesterday, HK$174.5 million Monday, suggesting worst of selloff likely coming to end; intraday low of HK$9.20 lowest in current round of selloff, may act as immediate support

Source: Dow Jones Newswire

[winston]

DJ MARKET TALK:Credit Suisse Raises CHST Target 10.1% To HK$13.03

1128 [Dow Jones] STOCK CALL: Credit Suisse raises China High Speed Transmission Equipment (0658.HK) target to HK$13.03 from HK$11.83 after raising FY09-10 EPS forecasts by 10% each after FY08 results. Keeps at Outperform. Notes FY08 net profit +125.8% on-year at CNY692 million vs consensus, house forecasts at CNY530 million, CNY511 million respectively. Expects solid 2009 earnings growth based on full orders of 9GW vs 6GW capacity.

Also notes GE's (GE) 1Q09 results better than expected, improving outlook for wind-turbine shipment likely to boost confidence in CHST's 2010 or later earnings growth, which needs revenue growth from global market. "However, we think current valuation is close to its fair value for 2009E and the stock price's potential upside is limited in the short term." Shares up 1.7% at HK$11.90.

Source: Dow Jones Newswire

[winston]

Morgan Stanley is selling HK$865 million of shares in China High Speed Transmission (0658). The investment bank is offloading 65 million shares at around HK$13.03 to HK$13.30 per share, an 8.3 percent to 10.1 percent discount on yesterday's closing price.

According to a Hong Kong Stock exchange filing, Morgan Stanley has an 8.04 percent stake in China High Speed, equivalent to 100.1 million shares. Should the transaction be closed, Morgan Stanley's stake will be cut to around 2.8 percent.

China High Speed closed 3.6 percent higher at HK$14.50 yesterday.

Source: The Standard HK

[winston]

First MS was selling. Now their largest shareholder is selling. You dare to buy ? Not vested ..

China High Speed Shareholder Agrees to Sell Shares (Update1) By Theresa Tang

May 12 (Bloomberg) -- Shares in China High Speed Transmission Equipment Group Co., the nation’s largest maker of gears for wind turbines, fell the most in almost three months after it said its single largest shareholder agreed to sell 65 million shares, or a 5.22 percent stake, in the company.

Fortune Apex Ltd.’s holding will be cut to 21.56 percent after the disposal, China High Speed said in a Hong Kong stock exchange filing today. No information was given on the sale price or how much Fortune Apex will raise from the transaction. Fortune will not sell any more shares in China High Speed for the next 12 months, according to the statement.

China High Speed shares fell as much as 10 percent to HK$13.42 in Hong Kong trading, the biggest decline since Feb. 16, and the stock was traded at HK$13.56 at 11:42 a.m. local time. The city’s benchmark Hang Seng index rose 0.4 percent.

Source: Bloomberg

[winston]

Not vested.

DJ MARKET TALK: CHST Down 5.7%; Accumulate On Weakness - CIMB-GK

1142 [Dow Jones] China High Speed Transmission (0658.HK) down 5.7% at HK$16.92 following weaker-than-expected 1H results; 1H09 net profit +0.7% on-year at CNY254.41 million but Keith Li at CIMB-GK says result makes up only one-third of FY forecast, likely due to its new plant to start operations in July.

Still, says company likely to catch up with market expectations for full-year earnings target. "The earnings split for the first half (one-third) is not totally unexpected. I think it's a good chance to accumulate shares at their current weakness as its earnings outlook is expected to be strong ahead."

Keeps stock at Outperform, says target price (currently at HK$19.90) under review.

Source: Dow Jones Newswire

[winston]

Wind power demand spurs move to boost output by Derek Yiu, The Standard HK

With strong support for wind energy worldwide, China High Speed Transmission Equipment (0658) will spend 1.8 billion yuan (HK$2.04 billion) to expand production capacity.

It will spend 1 billion yuan this year and 800 million yuan next year to boost production capacity of wind gearboxes to 6,000 megawatts and 9,000 MW, respectively.

Chairman and chief executive Hu Yueming said the State Council wants to reduce the number of wind energy plants, but demand for wind gearboxes is still larger than supply. China Transmission will maintain 12 to 13 clients, which now account for 98 percent of wind energy production.

Its development of 2.5 MW and 3 MW wind gearboxes has made considerable progress and both will be available next year.

Chief financial officer Edward Lui Wing- hong said steel costs showed an upward trend in August and September, but selling prices are expected to cover the increase.

"We aim to maintain our profit margin next year," Lui said.

Hu said the company's early termination of equity investment was to avoid risk but it caused a loss of 393 million yuan. The chairman promised not to invest in derivative financial instruments in the future.

http://www.thestandard.com.hk/news_deta ... 90922&fc=2

[winston]

Not vested.

DJ MARKET TALK: DBS Keeps China High Speed Transmission At Buy

1225 [Dow Jones] STOCK CALL: China High Speed Transmission (0658.HK) down 1.4% at HK$16.62, vs HSI's 0.5% gain, extending Monday's 6% fall on weak 1H09 results; but shares unlikely to revisit its month-to-date low of HK$16.00, as analysts expect strong 2H outlook.

"We expect the recovery of the export business, as the global economies recover and more progressive environmental protection plans are introduced," says DBS. Broker likes CHST's strong position, thinks company can continue to be major beneficiary of strong demand for wind turbine gearbox both from China, rest of world. Keeps at Buy, targets HK$21.00.

Source: Dow Jones Newswire

[winston]

DJ MARKET TALK: SinoPac Upgrades CHST To Outperform Vs In-Line
Sept 24, 2009

0811 GMT [Dow Jones] STOCK CALL: SinoPac upgrades China High Speed Transmission (0658.HK) to Outperform from In-Line given its solid business outlook and attractive valuation; raises target to HK$20.04 from HK$15.44, based on 20X FY10 earnings, implies PEG ratio of 0.9.

"Given the firm's aggressive capacity expansion and a new plant that commenced production in July, we remain upbeat about its ability to reach its target." Adds, also positive on longer-term sales outlook, as production fully booked for next year and company is maintaining its 9,000 MW delivery target for 2010.

Source: Dow Jones Newswire

[winston]

DJ MARKET TALK: DB Cuts China High Speed Trans Target To HK$19.60

1511 [Dow Jones] STOCK CALL: Deutsche Bank lowers China High Speed Transmission Equipment (0658.HK) target price to HK$19.60 from HK$19.90 after lowering 2009-11 earnings forecasts by 3.3%, 4.0%, 6.7% after fine-tuning assumptions to include higher interest expenses, lower Hongshen associate contribution and revenue forecast from rail gearbox.

Keeps at Buy. "We like CHST as the key beneficiary of wind power growth plus a favorable gearbox supply and demand dynamics." Says among key takeaways from non-deal roadshow, expects 2H09 gross margin should not be lower vs 1H09 as material costs will remain at low levels; says even though CHST cut wind gearbox average selling price by 2% in 1H09, margin outlook stable as cut just to pass through lower material costs.

Source: Dow Jones Newswire

[winston]

Not vested.

DJ MARKET TALK:MS Ups China High Speed Transmission To Overweight

0933 [Dow Jones] STOCK CALL: Morgan Stanley upgrades China High Speed Transmission (0658.HK) to Overweight from Equalweight on stock's underperformance over past five months, prospects for better-than-expected operating cost control.

( So do you buy a stock becuz their cost control is better than expected ? And how much cost can they cut ? LOL )

"We look for an improving outlook for wind power in the U.S. and potential contribution from new component business to drive performance." Raises target price to HK$18.20 from HK$15.90 after increasing FY10-11 EPS estimates by 12.7%, 11.0% as expects better-than-expected control of distribution and administrative costs.

Trims FY09 EPS estimate by 1.5% on reduction in wind gearbox shipments to 6.0GM to 6.3GW, lower shipments of marine and high speed gears. Notes industry oversupply concern, but adds, "We see no immediate concern, due to long design-in process and technology barriers, but expect downward pressure on gross margins over the next 3-5 years."

Source: Dow Jones Newswire