Seeking Alpha

Yingli -7.1% premarket following mixed Q3 results, guidance reiteration

  • Yingli (YGE) is reiterating its full-year module shipment guidance of 3.2GW-3.3GW. Given Yingli's big YTD gains, as well as recent guidance hikes from other Chinese solar names, investors may have wanted more.
  • Thanks to stabilizing module prices and cost cuts, Q3 gross margin was 13.7%. That figure exceeds guidance of 11%-13%, and is up from 11.8% in Q2 and -22.7% a year ago.
  • Chinese sales made up 38% of revenue, up from 28% in Q2, shipments to high-margin Japan (rising for many Chinese solar names) rose 35% Q/Q, and U.S. sales eclipsed European sales. European demand declined due to the import quota agreement reached between China and the EU. Chinese + U.S. sales equaled over half of revenue for the first time.
  • Solar system sales jumped 368% Q/Q. Chinese module vendors are increasingly joining their U.S. peers in expanding into solar project sales.
  • Due to higher R&D and G&A spend, opex was $93M, +8% Q/Q and +34% Y/Y.
  • Yingli's cash balance fell to $442.7M from $591M at the end of Q2. However, debt fell to $2.6B from $2.8B.
  • Q3 results, PR

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Comments (1)
  • moreofthesame
    , contributor
    Comments (743) | Send Message
     
    Debt is coming down and profits are going up and future sales should increase. That's not bad at all.
    12 Nov 2013, 10:58 AM Reply Like
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