Goldman Sachs has cut its target price for China High Speed Transmission (HKG:0658) by 8% to HK$3.3 but maintained its Neutral rating for the stock.

The brokerage believes that the company's wind gearbox unit is still under much stress and progress on new ventures is either behind original guidance on sales volumes and gross margins or lacks clear synergy with existing products.

It also expects the company's average selling prices to fall by 9% on year in 2012 and gross margin to fall to 24% in the year despite some cost reduction.

Source:chinesestock.org