China High Speed Transmission 0658

[winston]

Vested

Thursday Short-selling at 750,000 shares ( out of 6.3m shares ): 12%

Thursday Afternoon Short-Selling at 650,000 shares ( out of 3.6m ): 18%

Now I know why it was weak in the afternoon ...

There was an article in the SCMP two days ago that mentioned that they intend to mitigate lower margins by squeezing their suppliers ..

Revenue Growth should be around 15-20%.

[winston]

Vested

Friday Morning Short-Selling at 179,000 shares ( out of 1.6m shares ): 11%

Selling thru Barclays, UBS, CS, MS & SG

Buying thru Macquarie

[winston]

Vested

Friday Short-Selling at 579,000 shares ( out of 7.9m shares ): 7%

Selling was very heavy in the afternoon thru SG & Barclays.

It looks like somebody is trying to clean up the books before they report the 1H numbers..

[winston]

Vested. From Nomura:-

China High Speed Transmission [658 HK] - Buy : Key takeaway from CHST visit( HK$8.06 / PT: HK$14.8 )
Ivan Lee; Alan Hon

Our site visit to CHST provided us with updates regarding the company’s development. Management remained bullish on the 12GW delivery for FY11F.

However, management guided for higher ASP pressure (10-12%) vs. our forecast (10%), gross margin (25-30%) vs. our forecast (29%) and loss on equity swap (HKD 30mn) vs. our forecast (nil)

Our sensitivity analysis using the above scenario (ASP down 11%, gross margin of 27.5% and loss on equity swap HKD 30mn) suggests a downside pressure of 8% over our FY11F earnings forecast of HKD 1,475mn.

Valuation methodology: Our TP of HKD14.8 is based on DCF with the assumption of 9.5% WACC and a terminal growth rate of 2%.

Key risks: Risks to our target price include changes in government policy, development of direct
drive wind turbine technology, slower-than-expected growth in overseas markets and stiffer competition in China.


http://www.nomura.com/research/GetPub.aspx?pid=443615

[winston]

Vested

Capital Group bought 1.5m shares, raising their stake from 8.96% to 9.07%

http://sdinotice.hkex.com.hk/di/NSForm2 ... g=EN&dia=Y

[winston]

Vested

Wednesday Short-Selling at 1.5m shares ( out of 5.7m shares ): 26%

[winston]

Vested

Friday Morning Short-Selling at 426,000 shares ( out of 2m shares ): 21%

[winston]

vested

Big elephant selling 171,000 shares @ 7.03 thru Barclays.

Panic Selling ? Stop-Loss Selling ?

Another example that I should have sold everything instead of keeping half, to follow the story

[winston]

Vested

Big elephant selling 148,000 shares at 7.13 thru Bocom International.

( Looks like a desperate selling or Stop-Loss Selling or the guy may know something that you dont as he's probably from the PRC. Who uses Bocom International to trade ? )

[winston]

Vested

DJ MARKET TALK:China High Speed Transmission May Fall;Profit Warning

0853 [Dow Jones] China High Speed Transmission (0658.HK) may fall after it says it expects to record a significant decrease in 1H11 net profit from 1H10's CNY563.49 million, due to a decrease in average selling price of wind power gearbox products, and the temporary postponement of delivery of wind gearbox products requested by certain customers as a result of a significant reduction in the quantity of power generated by the wind turbine generators from late May to end-June 2011.

Such significant reduction was due to the fact that the China government requested rectification of the quality of the wind turbine generators during the period in order to address concerns regarding a flaw in the low voltage ride through ability of the wind turbine generators.

The warning may trigger some selloff in the stock, as Thomson Reuters' poll is tipping it to record a FY11 net profit of CNY1.36 billion vs CNY1.38 billion in FY10. The stock ended down 0.7% at HK$7.09 Friday.

Source: Dow Jones Newswire