China Wind Systems (CWS) has been awarded a $3 million contract by Nanjing Chang Feng to supply them with a total of 1500 units of high speed shafts used to transmit energy from the gearbox to the generator in order to produce electricity from wind turbines.  The first 500 units will be delivered before the end of the year and the rest in the 1st half of next year.

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“Our cooperation with Nanjing Chang Feng further demonstrates our growing reputation as a high-quality product manufacturer and preferred wind component supplier in China,” said Mr. Jianhua Wu, Chairman and CEO of China Wind Systems. “We have increasingly observed downstream wind power players expand their production capacity to meet the growing market demand for wind power fueled by China’s aggressive renewable energy policy. In light of our recent sales contract wins and our attractive market position as a leading wind component supplier, we reaffirm our 2010 financial guidance of revenue to be in the range of $76.5 million to $85.0 million and net income to be between $15.5 million and $16.3 million. We are also confident that our wind industry segment will exhibit a 75% year-over-year growth to reach $35 million in fiscal year 2010.”

Shares of CWS aren’t moving on the news and actually down nearly 4%.  They remain in a fairly tight range, possibly preparing for a move above resistance of the 200 day moving average.  A high volume move above this resistance level would signal an excellent entry point.