China Wind Systems, Inc.
(OTC BB: CHWY)
Alternative Energy
(OTC BB: CHWY)
Alternative Energy
 | $11 |
On October 13, 2009, China Wind Systems completed a one-for-three stock split intended to position the Company for a move to a senior exchange. We think the NASDAQ is the market of choice for the Company and by splitting the stock, the Company meets one of the NASDAQ listing requirements – a stock price above $4. In addition, the Company has announced plans to expand its forged product facility in Wuxi City to include a new production line for the manufacture of electro-slag remelted (ESR) forged high performance components for use in wind power turbines. Due to the stock split and the announcement of the ESR production line, we are adjusting our estimates for 2009 and 2010, as well as out price target. We have adjusted our revenue and cash flow targets to account for the ESR business. No impact on revenue is expected n 2009, but we begin to add revenue in late 2010. We are maintaining our “Buy” recommendation, and adjusting our 12-month price target to $11.
Click Here For Full Report
Click Here For Full Report
Videos from China
Dave Gentry Visits China Wind: watch video
Dave Gentry Visits China Wind - Dye Machine Factory: watch video
Investment Highlights
Overview
China Wind Systems is strategically positioned to answer the world's call for more wind power. Through our affiliates – the Huayang Companies – we are effectively transferring a wealth of precision manufacturing expertise gained over the years into our wind energy component operations. Our precision forging technology and upgraded capacity will enable us to deliver high quality and quantity large forged rolled rings, gearboxes, yaw bearings and shafts for use in large-scale windmills. The mix of advanced technology and an established satisfied customer network sets us apart from the competition. Already a key industry player, we are well-positioned to become a leading wind components supplier in the years to come.
China Wind Systems enjoys a track record of operating a profitable business in precision manufacturing for more than a decade. Additionally, we have an established and growing national network of satisfied customers, and strong ties within the wind industry, including wind turbine manufacturers. Located in Wuxi, Jiangsu Province – the central point of the Eastern Corridor Wind Resource – China Wind Systems is close to and conveniently accessible by all major modes of transportation. Transportation is a significant expense factor for our customers; our geographic advantage affords cost savings in this area. We completed another major milestone in October 2008 – the installation and testing of the new equipment and processes as part of our Phase I Expansion. This marked the start of supplying forged rolled rings and shafts for larger wind turbine units. We have complete confidence in our ability to execute our business plan.
Dave Gentry Visits China Wind: watch video
Dave Gentry Visits China Wind - Dye Machine Factory: watch video
Investment Highlights
- We are maintaining our “Buy” rating.
- We are adjusting our target price from $3.50 to $11 due to stock split.
- Adjusting forecast estimates to reflect stock split.
- Electro-Slag Remelting (ESR) production line announced with start-up expected in late 2010.
Overview
China Wind Systems is strategically positioned to answer the world's call for more wind power. Through our affiliates – the Huayang Companies – we are effectively transferring a wealth of precision manufacturing expertise gained over the years into our wind energy component operations. Our precision forging technology and upgraded capacity will enable us to deliver high quality and quantity large forged rolled rings, gearboxes, yaw bearings and shafts for use in large-scale windmills. The mix of advanced technology and an established satisfied customer network sets us apart from the competition. Already a key industry player, we are well-positioned to become a leading wind components supplier in the years to come.
China Wind Systems enjoys a track record of operating a profitable business in precision manufacturing for more than a decade. Additionally, we have an established and growing national network of satisfied customers, and strong ties within the wind industry, including wind turbine manufacturers. Located in Wuxi, Jiangsu Province – the central point of the Eastern Corridor Wind Resource – China Wind Systems is close to and conveniently accessible by all major modes of transportation. Transportation is a significant expense factor for our customers; our geographic advantage affords cost savings in this area. We completed another major milestone in October 2008 – the installation and testing of the new equipment and processes as part of our Phase I Expansion. This marked the start of supplying forged rolled rings and shafts for larger wind turbine units. We have complete confidence in our ability to execute our business plan.
No comments:
Post a Comment