China High Speed Transmission 0658

[winston]

not vested

C TRANSMISSION (00658.HK) upgraded to Overweight - JPM
2013-04-11

JP Morgan noted in a research report that China-based wind power listed companies have climbed by 15%-55% year-to-date and have outperformed the market by 20%-60%.

Some investors think that most positive factors have been reflected, but the bank still sees growth potential for the sector.

The bank noted that C TRANSMISSION (00658.HK) has posted the weakest performance in the sector since the beginning of this year. It was lifted from Neutral to Overweight, with target price raised from $2.6 to $4.6.


Source: AAStocks Financial News

[investar]

UPgraded to 9.3 HKD!

[I-bank focus]DB upgrades C Transmission (00658) to HK$9.3

Deutsche Bank raised its target price for China High Speed Transmission Equipment (CHSTE)(00658) to HK$9.3 from HK$6, and upgraded the stock from "hold" to "buy".

After rush installation in 2014-15, the research house now expects wind capacity additions to more likely come as a "soft-landing" with 23-24GW p.a. through 2016-2020 on higher pipeline visibility and probable lifting of 2020 target.

The 90bps rate cut since 4Q 2014, with a likely further 50bps cut, has mitigated the impact on returns from a tariff cut. DB prefers CHSTE on its strong 1Q results and the
potential for full-year FY2015/2016 to be a positive surprise to the market, and current valuation at 11x FY2015/2016 PE and 1x PB not fully reflecting its turnaround initiatives that should lead to significant ROE/FCF enhancement.

By incorporating 1Q results and a better post-2015 outlook, the research house raised 2015/2016 earnings for CHSTE by 33% and 51%.

Source: ET Net News Agency