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EysteinH
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Norwegian. Master degree in psychology. Currently studying law and working part time. Interested in stock Analyst work.
  • Q1 And Q2 Comparison Of Production Cost, Opex / Shipment And Interest / Shipments 0 comments
    Oct 6, 2012 3:05 PM | about stocks: HSOL, TSL, CSUN, YGE

    Continuing on a previous article on the subject (http://seekingalpha.com/instablog/901705-eysteinh/693231-solar-cost-comparison-production-cost-and-added-the-operational-expense-cost-opex ) we will again look at operation costs and add them to production costs.

    The theory behind this value metric is to spread the operational costs that are not one time across the modules shipped for that quarter. That gives an idea on how effective sale channels, administration etc is and how much added cost these type of operational expenses add to the modules per watt.

    First a summary of the findings: (Q1 2012)

    Company

    Production cost

    opex costs in mil $

    Average sale prices (ASP

    shipments q1

    Rec

    1,0

    22,92

    0,98

    Shipments 191MW

    Yingli

    0,87

    60,3

    0,96*

    Shipments 520MW*

    Trina

    0,86

    58,1

    0,92

    Shipments 380MW

    China Sunergy

    0,85*

    18,8

    0,86

    Shipments 79,9MW

    Hanwha Solarone

    0,92*

    23,17

    0,83

    Shipments 160,7MW

    *shipments calculated shipments based on revenue/ASP
    Q2 2012:

    Company

    Production cost

    opex costs in mil $

    Average sale prices (ASP

    shipments q1

    REC

    0,94

    21

    0,93

    216 MW

    Yingli

    0,77

    73,7

    0,83

    590 MW

    Trina

    Unknown

    78,6

    Unknown

    419 MW

    China sunergy

    0,736

    16,9

    0,75

    150.3 MW

    Hanwha Solarone

    0,72

    23,6

    0,73

    230.7 MW

    We can then compare producers at production cost and then also add opex cost to compare them:

    (Q1)

    Company

    Production + opex

    Production cost

    Rec

    1,12

    1

    Yingli

    0,99

    0,87

    Trina

    1,01

    0,86

    China sunergy

    1,08

    0,85

    Hanwha solarone

    1,06

    0,92

    (Q2)

    Company

    Production + opex

    Production cost

    Rec

    1,037

    0,94

    Yingli

    0,894

    0,87

    China sunergy

    0,85

    0,736

    Hanwha solarone

    0,82

    0,72

    Then we can add interest expenses to the equation: (interest / shipments)

    (Q2)

    Company

    Interest expenses

    Production cost

    Production + opex

    Production + opex + interest

    Shipped

    REC

    21

    0,94

    1,037

    1,13

    216 MW

    Yingli

    36,1

    0,87

    0,894

    0,955

    590 MW

    China sunergy

    7,9

    0,736

    0,85

    0.90

    150.3 MW

    Hanwha solarone

    *

    0,72

    0,82

    0.85

    230.7 MW

    Note the number for added cost per shipments is of course influenced by how much sales are done but it reflects an added cost per sold unit so it is in the authors opinion an useful number.

    *Hanwha reports itself interest cost per watt at 0.03

    Themes: SOLAR Stocks: HSOL, TSL, CSUN, YGE
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