UBS gave China High Speed Transmission (00658.HK) a purchase rating for the first time, with a target price of 10.4 yuan.

According to UBS, China High Speed Transmission is the largest wind transmission manufacturer in the mainland, and its sales account for more than 60% of the overall market share in the mainland. It is believed that even if the new wind power production capacity is slowing down, the group can maintain profit growth. Because the group has strong bargaining power in the mainland and is actively expanding overseas markets, the Group's profit per share is expected to reach a compound annual growth rate of 16% from this year to 2018.

The Group's wind transmission sales target this year is 17 GW (15.2 GW last year). The bank believes that the target can be achieved. Due to the strong pace of overseas business expansion and its defensive mainland business, it also believes that the Group is ready to seize opportunities for offshore wind turbines and overseas customers.