China Wind Systems (CWS) Expects To Double Profits, Shares Soar 25%

China Wind Systems (CWS) which supplies components to wind turbine companies in China is out with strong guidance this morning and the stock is popping 25% as a result. 

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The company sees FY10 revenues in the range of $76 – $85, representing about a 50% increase over 2009.  The company sees non GAAP earnings between $15.5 – $16.3 million which is about double over last year.

While this is a company that still doesn’t get a majority of its revenues from wind energy products, the company expects stronger sales of precision forged products used in wind turbines and an increase of 75% in revenues from this segment of its business..

“We are pleased to see a healthy flow of customer orders in early 2010,” commented Mr. Jianhua Wu, Chairman and Chief Executive Officer. “As our forging facility becomes more efficient, we anticipate improvement in our profit margins. We believe we have the right strategy in place to cater to the rapidly growing wind power industry in China.”

Despite today’s big move in shares of CWS, the stock is still weak technically and still below key resistance at 5 which is the 50 day moving average. 

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