China Wind Systems (CWS) beat analyst estimates this morning posting a Q2 EPS of $0.12, vs the analyst estimate of  $0.10 on revenues of $19 million vs the analyst estimate of $17.4 million.  Quarter over quarter, that’s a 33% jump in EPS and a 40% increase in revenues, so a nice quarter from CWS.  The company is making good progress in transforming more into a wind energy manufacturing company which now makes up 48% of its business.  That’s a 152% increase over the year ago period.

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CEO Jianhua Wu commented:  “During the quarter, our forged products continued to experience strong growth, led by a significant increase in demand from our wind power customers.  In addition, we are currently in final stages of negotiations with a number of wind power component clients to supply shafts and other forged products in the second half of 2010. We believe wind power is becoming an economically viable source of clean and renewable energy, promotes energy conservation and reduces carbon emissions in China, and we believe that the Chinese government will continue to extend strong support to this sector. We plan to leverage on what we see as our competitive edge in the industry to strengthen our market position.”

The company hopes to meet growing demand by adding another small scale production line and is reaffirming its 2010 financial guidance of revenues in the $76.5 – 85 million and net income in the $15.5 – $16.3 million range.  The one analyst covering the company expects about $80 million in revenues.

Shares of CWS are trading relatively flat this morning, up nearly 1%.  A breakout above 4.95 would be significantly bullish for CWS and may offer a nice entry point.