China High Speed Transmission 0658

[winston]

Not vested. PE 26. No growth ?

DJ MARKET TALK: GS Starts China High Speed Transmission At Buy

0924 [Dow Jones] STOCK CALL: Goldman Sachs starts China High Speed Transmission (0658.HK) at Buy, as house likes its exposure to higher-margin gearbox sales. Expects wind gears to contribute 71% of total FY11 revenue, up from 52% in FY08 and 3% in FY05.

"We believe exports will continue to contribute significantly to its revenue as CHST leverages its track record with foreign customers and cost competitiveness (CHST wind gears cost about 20% less than foreign-made wind gears)."

Sets target at HK$20.00.

Source: Dow Jones Newswire

[winston]

Not vested

DJ MARKET TALK: Taifook Ups CHST Target To HK$18.60; Keeps Hold
Dec 3, 2009

1556 [Dow Jones] STOCK CALL: Taifook believes China High Speed Transmission (0658.HK) will be able to achieve management's production target of 6,000MW in FY09 and meets its expanded capacity of 9,000MW in FY10.

After fine-tuning bottom-line estimates, house tips respective FY09 and FY10 earnings of CNY814 million and CNY1.112 billion, or a respectable EPS CAGR of 27% for the 2-year period.

House raises target price to HK$18.60 (previous level not shown), based on 18X FY10 earnings estimate, which slight premium to average FY10 earnings multiple of 17X traded by global peers in downstream wind turbine market.

Keeps at Hold on view stock appears fairly valued.

Source: Dow Jones Newswire

[winston]

Not vested.

DJ MARKET TALK: CHST Down 2.7%; MS Downgrades To Equalweight
Nov 25, 2010

1523 [Dow Jones] China High Speed Transmission (0658.HK) down 2.7% at HK$18.68 vs HSI's 0.5% rise, likely affected by Morgan Stanley's downgrade of stock to Equalweight from Overweight.

Notes, despite forecasting over 20% earnings growth beyond FY10, house finds stock fully-valued on 18X forward P/E and 4.0X P/B and expects shares to consolidate. House raises wind gearbox shipment forecast for FY10 to reflect potential for higher demand from U.S. as well as Chinese market.

"CHST may be able to achieve higher shipments by reallocating some of its traditional gearbox capacity to wind gearboxes. However, we see limited room for a positive earnings surprise beyond this level due to capacity constraint."

Raises target to HK$19.40 vs HK$18.20, after increasing FY09-FY10 EPS forecast by 5%-7%.

Source: Dow Jones Newswire

[winston]

Dr. Check is starting to be very predictable

Added to my position on Monday. From Dr. Check, The Standard HK:-

=========================================================

The HSI now has support at 20,800 but with a very big resistance at 21,510 - the 200-day moving average. The index must clear this barrier and stay above it for at least two sessions with higher turnover in order to ensure future gains. In the meantime, short- term trading is the best strategy.

With this in mind, I like China High Speed Transmission Equipment (0658), a supplier of mechanical transmission equipment for turbines to generate wind power.

High Speed accounts for 90 percent of the mainland market.

JPMorgan expects net profit to have a compound annual growth rate of 40 percent from 2008 to 2011. Goldman Sachs believes High Speed can benefit from Beijing's policy favoring wind power generation.

Brokers target the stock at about HK$20, which means it may have an upside of more than 20 percent from yesterday's close of HK$15.58.

http://www.thestandard.com.hk/news_deta ... 00303&fc=4

[millionairemind]

The HSI now has support at 20,800 but with a very big resistance at 21,510 - the 200-day moving average. The index must clear this barrier and stay above it for at least two sessions with higher turnover in order to ensure future gains. In the meantime, short- term trading is the best strategy.

Er... I don't think the 200DMA is at 21510. Its impossible that the 50DMA (around 21000) is lower than the 200DMA at this juncture. I have the 200DMA at around 20,300.

[lithium]

Congrats Winston! I bought a lot on Monday as well........ but got chicken out with tiny profit because of the high HSI distribution on Tuesday! Damn!

[winston]

Not vested.

DJ MARKET TALK: Invest Along China Wind Power Value Chain -Yuanta
Feb 10, 2010


1412 [Dow Jones] STOCK CALL: Yuanta Research starts China Energine (1185.HK), China High Speed Transmission (0658.HK), China WindPower (0182.HK) with Buy rating, target prices HK$1.50, HK$20.00, HK$1.20 respectively.

Suggests investing along wind value chain, key investment focus in order of: component makers with dominant market share in China; direct-drive turbine manufacturers with key R&D capabilities for components; key engineering, procurement and construction (EPC) providers to wind farm operations; wind farm operators with strong wind resource reserves, guaranteed on-grid connections.

Source: Dow Jones Newswire

[winston]

Not vested.

DJ MARKET TALK: CHST +5.0%; DB Tips Further Earnings Upside

1514 [Dow Jones] China High Speed Transmission (0658.HK) +5.0% at HK$17.08, outperforming vs HSI's 2.6% fall, after its FY09 results come in stronger than expected; net profit +39.6% on-year at CNY966.38 million, higher vs average CNY839.88 million forecast based on Thomson Reuters survey.

Deutsche Bank notes FY09 results beating consensus mainly on savings in selling, general & administrative expenses, which 8.1% of sales, vs 11.4% in FY08. "We expect further earnings upside given management's upbeat tone on gross margin, expenses control, and new product development."

Keeps at Buy, target HK$21.50. Stock off early high of HK$17.20, remains distant vs year-to-date high of HK$20.20.

Source: Dow Jones Newswire

[winston]

Vested

DJ MARKET TALK:Goldman Prefers Wind, Solar To Nuclear Power Plays
June 28, 2010

0913 [Dow Jones] Within China's clean energy spectrum, Goldman Sachs prefers wind, solar to nuclear power plays. Among wind power plays, its Buy call is China High Speed Transmission (0658.HK) for its leading position in wind gearbox market in China and new growth prospects in marine gear, high-speed rail gear and electro-mechanical integration products; targets HK$22.


Source: Dow Jones Newswire

[winston]

Vested

DJ MARKET TALK: JPM Remains Bullish On China Wind Power Sector
Jun 25, 2010

1536 [Dow Jones] JPMorgan remains bullish on China wind power sector, as there are signs of easing grid connection problems, after State Grid Corp of China stepped up efforts in cross-regional grid connection and construction of ultra-high-voltage power grid network.

Notes recent power data show positive trends, with new on-grid capacity additions in January-March +160% on-year and power output growth in January-May +102%. Within sector, says China High Speed Transmission (0658.HK) is top pick, with stock still trading at discount (12X FY11 P/E0 vs other listed China wind plays.

Keeps stock at Overweight, HK$24.30 target.


Source: Dow Jones Newswire