Summary of Recent Notable News on Chinese Solar Stocks (Updated July 12)
"Strong Buy" Rated U.S.-Listed Chinese Stocks (February 17, 2012)
Below is a summary of recent notable news on Chinese solar stocks, updated on July 12:
Suntech Power (NYSE:STP) plans to expand its China revenue from 2% to 20% of its total revenues in three years. It expected to achieve 600-700 MW of shipments in 2009, and its production capacity is expected to be 1 GW in 2009. The company will build a 500 MW photovoltaic project in China's Ningxia Province. The company has also drawn down the full $50 million amount of the convertible loan facility with IFC, a member of the World Bank Group.
LDK Solar (NYSE:LDK) has raised its 2Q09 revenue outlook from 200-220 MW to 220-230 MW. It expected total revenues between $215 and $225 million. LDK management believed the company's production capacity will likely be boosted to 2 GW by the end of 2009 because of the improving market situations. LDK's production capacity has already reached 1.5 GW in the first half of 2009. The company will also build five 1-MW PV plants in the Apulia region of Italy jointly with SAEM Srl ("SAEM"), a primary system integrator within the PV sector.
Yingli Green Energy (NYSE:YGE) said demand for PV module increased a lot in 2Q09. Product shipment will rise more than 70% in 2Q quarter-over-quarter. YGE management expected gross margin to rise from 15.3% to 20% quarter-over-quarter. The company has entered into a strategic partnership with China Guangdong Nuclear Energy Development Co. (CGNEDC) to jointly develop the photovoltaic power generation market. YGE will provide the joint project with high-quality and low-cost components and technical support.
Trina Solar (NYSE:TSL) has secured from Standard Chartered Bank (China) Limited new credit facilities totaling approximately $57 million, consisting of trade financing and defensive hedging products. The company has entered into a sales agreement with customer Enfinity NV ("Enfinity") to supply Enfinity with approximately 15 MW of PV modules, with shipments scheduled in the 2Q09.
ReneSola (NYSE:SOL) has qualified as a high technology enterprise in China. The classification allows the company to enjoy a reduced income tax rate of 15% for three years, starting on January 1, 2009. The 15% tax rate applicable to Zhejiang Yuhui replaces the 25% statutory tax rate that the Company will be subject to once the current tax concession expires.
JA Solar (NASDAQ:JASO) has announced several changes in its executive management team to better position the company for continued growth. The changes involved six executives at the company. The most notable change is that Mr. Baofang Jin, JA Solar's co-founder and chairman of the board since the company's inception, has been named executive chairman and will assume additional responsibilities within the senior management team.
Canadian Solar (NASDAQ:CSIQ) announced the recovery of PV industry had helped the company operate at full capacity. It will expand its module production capacity from 620 MW to 800 MW by the end of August 2009.
China Sunergy (NASDAQ:CSUN) has entered into a 6 year, 53 MW sales framework agreement and a 3 MW sales contract with Renergies Italia S.p.A, ("Renergies Italia"), a manufacturer of solar modules based in Urbisaglia(MC), Italy.
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