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A new report by Solarbuzz states that

Asia Pacific photovoltaic markets are set to grow rapidly and are projected to account for approximately one-quarter of global demand by 2015, up from 11% in 2010, according to the latest Asia Pacific Major PV Markets report from Solarbuzz.

It further states that "China is stimulating its domestic demand through both national and provincial programs. This will cause China’s market to expand in 2011 by up to 174% over its 2010 level." The Chinese solar makers are very well positioned to capitalize on the coming solar boom in China. But the boom doesn't stop there, as Japan and India are also seeing new growth in solar. Let's look at some of the major markets for solar in the Asian Pacific region
China: The Chinese government has set solar goals under a program called the "Golden Sun." According to Solarbuzz:

On-grid installations in China are projected to double in 2011 as Chinese incentive policies increase the pace of large and utility-scale PV installations .... the PV market in China is ready to deliver strong growth through 2015.

Japan: Japan is set to rebuild and see a major boom in construction due to the damage from the tsunami and earthquake. New government policies in Japan suggest 35% growth for solar in 2011.
India: Government policies in India are very favorable for solar power. According to the Solarbuzz report:

Armed with the goal of installing 22 GW of new solar capacity by 2022, the National Solar Mission has sanctioned 300 MW of on-grid PV capacity to be installed through 2011 and 2012, with an additional 300 MW to be allocated in 2H’11.

South Korea and Australia: These countries are also set to grow rapidly. The Solarbuzz report has further details on the growth and programs for these countries.
The Chinese solar companies are best positioned to capitalize on the coming Asian Pacific solar boom due to their low cost manufacturing capabilities and their geographic proximity to key Asian Pacific countries. Some U.S.-based investors, analysts and shorts seem to be completely ignorant or in denial over the growth opportunities that lie ahead for the Chinese solar manufacturers. Here are a number of companies poised to benefit from the strong growth in this region.
LDK Solar (NYSE:LDK) is trading at $6.74. The 50-day movingYahoo Finance average is $6.92 and the 20-day moving average is $10.46. LDK has very strong earnings for a stock trading below $7, and based on guidance from the company, it appears it could earn over $3 per share in 2011. This puts the PE ratio at about 2.5. According to Yahoo Finance, LDK has $3.61 per share in cash and a book value of $9.39, so these shares are trading way below book value.
JinkoSolar Holding Co., Ltd. (NYSE:JKS) is trading at $21.70. The 50-day moving average is $24.27 and the 200-day moving average is $25.88. JKS has earnings estimates of about $6.35 per share for 2011 and $5.52 for 2012. This puts the PE ratio at under 4. These shares have received multiple buy ratings with price targets of about $40.
ReneSola, Ltd. (NYSE:SOL) trades at $4.53. The relative strength index is about 39, which indicates the stock is at oversold levels. The 50-day moving average is $5.43 and the 200-day moving average is $8.85. SOL is estimated to earn about $1.08 per share in 2011. According to Yahoo Finance, SOL has $4.53 per share in cash and a book value of $7.11, so these shares are trading below cash levels and book value.
JA Solar Company, Ltd. (NASDAQ:JASO) trades at $4.80. These shares have fallen, from a 52-week high of $10.24. The 50-day moving average is $5.23 and the 200-day moving average is $6.75. JASO has earnings estimates of about $1 per share for 2011. This puts the PE ratio at about 5. According to Yahoo Finance, JASO has $2.61 per share in cash and a book value of $6.76, so these shares are trading below book value.
Trina Solar, Ltd. (NYSE:TSL) has pulled back to about $17.91. These shares have a relative strength index of about 39, which indicates the shares are oversold. The 50-day moving average is $20.17 and the 200-day moving average is $24.89. TSL is estimated to earn $3.14 per share in 2011. According to Yahoo Finance, TSL has $6.98 per share in cash and a book value of $17.41, so these shares are trading close to book value.
Yingli Green Energy Holding Co., Ltd. (NYSE:YGE) closed at $7.24 last week. The relative strength index is about 39. The 50-day moving average is $8.19 and the 200-day moving average is $10.63, so the shares are trading well below support levels. Estimates for YGE are about $1.19 per share in 2011. This puts the PE ratio at about 6, which is higher than the other names above, but it is still a huge discount to the stock market average.
Hanwha SolarOne Company (NASDAQ:HSOL) shares are trading at $5.42. Hanwha SolarOne is a leading maker of wafers and solar modules and is based in China. The 50-day moving average is about $5.68 and the 200-day moving average is $7.69. Earnings estimates for HSOL are expected to be 82 cents for 2011 and 95 cents for 2012. According to Yahoo Finance, HSOL has $2.49 per share in cash and a book value of $9.85, so these shares are trading way below book value.
Daqo New Energy Corp. (NYSE:DQ) closed at $6.33 last week. DQ is a leading polysilicon manufacturer, based in China. The relative strength index is about 34, which indicates the shares are oversold. The 50-day moving average is $8.15 and the 200-day moving average is $11.30, so the shares are trading well below support levels. Estimates for DQ are about $2 per share in 2011. This puts the PE ratio at about 3, which is a huge discount to the stock market average. Book value is $8.56 per share.
Disclosure: I am long LDK.
Additional disclosure: I may buy all of the names mentioned soon.
Source: Stocks That Could Prosper From the Coming Asian Pacific Solar Boom