Seeking Alpha

Yingli tumbles on Q4 miss, margin pressure

  • Though Yingli's (YGE -10.5%) module shipments rose 11.4% Q/Q in Q4 (in-line with a revised guidance range of 11%-12%), its gross margin fell to 12.2% from 13.7%. If not for a year-end tax adjustment, GM would've come in at 14.2%; the figure was at -8.5% a year ago.
  • Yingli is guiding for 4GW-4.2GW of 2014 module shipments, up 29.4%-32.6% from a 2013 level of 3.23GW. The company's own solar system sales are expected to account for 400MW-600MW of those shipments.
  • Yingli has a 1GW Chinese downstream solar project pipeline, and a 200MW overseas downstream pipeline. The company plans to respectively finish construction of 400MW-600MW and 30MW-50MW of those projects in 2014.
  • Chinese shipments rose 60% Y/Y in Q4, and Japanese shipments 50%. Slumping Europe only made up 11% of shipments.
  • Excluding a $79.3M non-cash inventory purchase provision related to polysilicon supply deals, opex fell 1% Q/Q and 36% Y/Y to $93.4M. Yingli ended 2013 with $462.2M in cash, and over $2.4B in debt.
  • Q4 results, PR

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Comments (2)
  • yanmingzh
    , contributor
    Comments (16) | Send Message
     
    The 2014 guideline is not bad, 4-4.2GW is huge. For long term investor, YGE will be profitable sooner or later and in this year, then it could easily boost up to $10+. Hold it at this price, it is cheap.
    18 Mar 2014, 12:55 PM Reply Like
  • mausam.duggal
    , contributor
    Comments (14) | Send Message
     
    I concur...this 10% drop is a buying opportunity
    18 Mar 2014, 02:26 PM Reply Like
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