Monday, February 4, 2008

New undiscovered company - China Wind Systems (CWSI.OB)

Here is another interesting company and completely unknown (in my opinion):

China Wind Systems (CWSI.OB)

Wind Energy sector in China is hot. Here is the unknown company that makes components for wind systems...

It just made a reverse merger, and here is what it is now:

China Wind Systems, through its affiliates, Huayang Dye Machine and Huayang Electrical Power Equipment, manufactures and sells industrial equipment for use in the textile and energy related industries in China. Since August 2007, the Company has shifted its strategy to focus on the growing wind energy industry in China, and has begun to supply high precision rolled rings to companies in the wind power energy industry.

Check out this presentation on their web site:

http://www.chinawindsystems.cn/en/ChinaWind-%20web%5B1%5D.ppt

Read more on this company here:

http://sec.gov/Archives/edgar/data/819926/000114420408005833/v101418_8ka.htm

Few highlights:


  • 9 months of 2006 revenues of the new company: 12.3 mil
  • 9 months of 2007 revenues: 16.5 mil
  • 2006 net income: 1.8 mil (operating income 2.7 mil)
  • 2007 net income: 9.4 mil (operating income 3.9 mil)
  • Total O/S - 36 mil (earnings are already .26 cents for 9 months of 2007)
    float should be tiny...no more than 2 mil, if I got my numbers correct....
  • Trading at the CURRENT PE of less than 7.


Check out the latest PR from few weeks ago:


http://biz.yahoo.com/prnews/080116/cnw025.html?.v=10


WUXI, China, Jan. 16 /Xinhua-PRNewswire-FirstCall/ -- China Wind Systems, Inc. (OTC Bulletin Board: CWSI - News; ''China Wind Systems'' or the ''Company''), which through its wholly owned subsidiaries manufactures and sells industrial machines for use in the textile and energy related industries in the People's Republic of China, today announced that it has purchased new equipment to expand its forged rolled rings manufacturing capabilities. The $4.13 million purchase was in line with the Company's strategy to focus on the growing wind power industry in China, and was largely funded with the proceeds from its recent private placement financing.

The purchase marks the first step in execution of the Company's expansion plan. In the initial phase, China Wind Systems will focus on producing rolled rings that measure up to 6 meters in diameter as well as other windmill components such as shafts. China Wind Systems plans to purchase additional equipment during phases two and three of its expansion. In phase two, the Company intends to manufacture yaw bearings and gear boxes. In phase three, the Company will manufacture other windmill components such as rotor blades. At the conclusion of its expansion, China Wind Systems will be capable of producing forged rolled-rings, measuring up to 8 meters in diameter and weighing up to 150 tons to suit different applications and processes in the wind power industry.

Recently, China Wind Systems purchased a 4,500-ton hydraulic press for use in its metal forging process to produce shafts that weigh up to 18 tons, used in 2 MW wind turbine units. The Company also acquired a ring rolling mill capable of producing rolled rings measuring up to 6 meters in diameter and weighing up to 12 tons. The equipment will be installed at its new 107,639 square foot facility in Wuxi, Jiangsu Province and the Company expects to start production at the new facility by September 2008. China Wind Systems will utilize the axial closed-die rolling technology in its forging process. The new technology will reduce material waste during the forging process by approximately 35%, ensure high precision and surface flatness, and produce rolled rings with excellent mechanical strength and high flexibility.

''Demand for rolled rings is strong, particularly for larger rolled rings used in the wind power industry. With the addition of our new equipment, we will expand our production capabilities to produce precision rolled rings that measure approximately 6 meters in diameter and shafts that weigh approximately 18 tons,'' said Mr. Jianhua Wu, Chairman and CEO of China Wind Systems. ''We expect the rolled rings segment of our business to increase significantly in 2008, growing from only 8% of revenue in 2007. Once the utilization rate for the equipment reaches 100 percent, we expect to see significant improvement in our overall profitability,'' added Mr. Jianhua Wu.

They are also presenting in this conference:

http://cleanenergynews.blogspot.com/2008/02/third-annual-piper-jaffray-clean.html

Piper Jaffray Conference - Feb 28

as well as Roth Capital conference later this month
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