Although China High Speed Transmission Equipment (HKG:0658) significantly underperformed expectations for 2011, much of the risk and pessimism are believed to be built into the share price already, particularly following its profit warning, an equity research report by Barclays says.

However, with management's solemn tone on continued revenue and margin pressures in 2012 as well as the lack of any clear turnaround catalysts in the next 12 months, Barclays has cut its target for the stock to HK$4.1 from HK$4.5 as it has lowered EPS estimates for the company. The brokerage retains its Equal Weight rating for the stock.

Source:chinesestock.org