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China Sunergy tumbles on guidance cut

  • China Sunergy (CSUN -18.3%) shares are getting pummeled after improved Q2 results but downcast guidance.
  • Revenue expanded 16.5% Q/Q to $71.9M. Shipments climbed 23.3% to 126.4MW. Module ASP climbed 6.8% Q/Q to $0.63/watt.
  • Gross margin expanded to 9.3% from 0.4% in Q1.
  • Management warned that "during the second quarter, Chinese banks significantly tightened credit facilities to solar companies, which caused us to face a constrained working capital and reduced our ability to procure adequate inventory for subsequent production.  As such, we anticipate lower shipment volume and profitability for the third quarter of 2013, and correspondingly, we also anticipate lower total shipment for full year 2013."
  • The company now expects shipments in Q3 of 110MW with low single-digit margins. For the full year, the company revises guidance down to 440MW-480MW from a previous 500MW-550MW.
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