DAQO New Energy: A New Leader In The Polysilicon Industry
EnerTuition • 20 Comments
EnerTuition • 20 Comments
Daqo New Energy: Survival Odds Are Low
Apr. 10, 2015, 6:00 PM
- With China having recently hiked its 2015 solar installation target by 2.8GW to 17.8GW (up from 2014's 14GW), Daqo (NYSE:DQ) thinks "the supply and demand of polysilicon will remain in balance" this year, even though some new capacity might go online.
- The company reiterates its plans to hike its annual polysilicon capacity from 6,150 MT to 12,150 MT by the end of June, and in doing so cut its total production cost to $12/kg (it was at $13.23/kg in Q4). Daqo is also carrying out "early research" for an expansion of its Xinjiang facilities that would bring total capacity up to 25,000 MT.
- Q4 polysilicon shipments totaled 1,537 MT, down slightly from Q3's 1,598 MT but up from Q4 2013's 1,271 MT. Wafer shipments totaled 17.8M pieces vs. 18.5M in Q3 and 16.7M a year ago. Ahead of the capacity ramp, Daqo expects to report Q1 polysilicon shipments of 1,500 MT and wafer shipments of 17.5M-18M.
- With the help of better prices, polysilicon revenue rose 40% Y/Y to $33.8M, and wafer revenue 43% to $15.7M. Gross margin (non-GAAP) rose to 32.1% from Q3's 31.7% and Q4 2013's 18.5%. Operating expenses fell by ~$600K Y/Y to $4.95M. Daqo ended 2014 with $29.2M in cash and $237.1M in borrowings.
- Shares rose to $29.20 in regular trading. They haven't topped $30 since December.
- Q4 results, PR
Apr. 10, 2015, 6:08 AM
- DAQO New Energy (NYSE:DQ): Q4 EPADS of $0.39 misses by $0.34.
- Revenue of $49.47M (+33.6% Y/Y) beats by $3.37M.
Mar. 25, 2015, 3:41 PM
- A day after posting fresh gains while broader equity markets barely moved, solar stocks are posting steep losses (TAN -4%) amid a 2.2% drop for the Nasdaq.
- Hurting the group's cause: Yingli (down 14.7%) posted a Q4 miss this morning in spite of topping its solar module shipment guidance. ASP declines and a weak euro/yen weighed on the company's top line.
- Chinese firms ReneSola (SOL -7.5%), Daqo (DQ -5.7%), Trina (TSL -4.1%), and JinkoSolar (JKS -3.5%) are among the major decliners. But so are North American firms First Solar (FSLR -3.5%), SunEdison (SUNE -4.2%), Vivint (VSLR -3.8%), and Canadian Solar (CSIQ -3.2%).
- SunEdison announced today it plans to buy 1K vanadium flow batteries (good for over 100MWh) from Imergy Power Systems to store solar electricity produced by Indian minigrid projects. Along with the move, SunEdison is upping its equity stake in Imergy. The move comes shortly after SunEdison announced it's entering the solar/wind battery storage market itself by acquiring assets from private Solar Grid Storage.
Mar. 24, 2015, 2:24 PM
- Buoyed this year by decent Q4 numbers, solid 2015 guidance, and YieldCo news, solar stocks are adding to their gains today even as the Nasdaq barely budges. The Guggenheim Solar ETF (TAN +0.7%) is up 35% YTD and nearing a 52-week high of $47.00.
- Chinese firms are adding to last week's gains - JinkoSolar (JKS +3.7%), ReneSola (SOL +3.3%), Daqo (DQ +4.8%), Trina (TSL +1.9%), JA Solar (JASO +2.7%), and China Sunergy (CSUN +12.5%) stand out. Beijing recently hiked its 2015 solar installation target by 2.8GW to 17.8GW (up from 2014's 14GW), while setting no specific targets for utility vs. distributed solar installations. The lack of utility/distributed targets is expected to make the goal easier to hit.
- U.S. names aren't getting left out: First Solar (FSLR +3.5%) and SolarCity (SCTY +2.1%) are rallying, as are microcaps RGS Energy (RGSE +6.5%) and Solar3D (SLTD +12.7%). Solar3D, a California installer, has risen 58% over the last 4 trading days.
Mar. 20, 2015, 3:02 PM
- With the Nasdaq up 0.9% (and nearing its March 2000 highs) amid a market rally, major tech gainers are easily outnumbering major decliners.
- Following a 1.4% overnight rally in Shanghai, strong Q1 guidance from Ctrip, and a report that Sohu/Tencent's Sogou search engine is planning an IPO, a slew of Chinese tech names are posting big gains. Aside from Ctrip and Sohu, notable gainers include search/browser/security app provider Qihoo (QIHU +4.9%), sports lottery site 500.com (WBAI +12.5%), auto sites Bitauto (BITA +4.2%) and Autohome (ATHM +4.9%), online retailer Vipshop (VIPS +4.7%), data center owner 21Vianet (VNET +6.7%), polysilicon maker Daqo (DQ +6.5%), and chat/dating app owner Momo (MOMO +4.6%).
- Other standouts include optical component vendor Oclaro (OCLR +9.6%), U.S. solar installer Solar3D (SLTD +10%), NFC reader maker On Track (OTIV +10.5%), printer maker Lexmark (LXK +3.7%), and big data/analytics software provider Hortonworks (HDP +10.2%).
- Notable decliners include VoIP hardware/software provider Sonus (SONS -6.1%), solar microinverter leader Enphase (ENPH -4.2%), and authentication hardware/software provider Vasco (VDSI -5.7%).
- Qihoo is adding to Wednesday's gains, while 500.com and 21Vianet are erasing recent losses. On Track is now up 21% over the last two days. Solar3D is adding to the gains seen yesterday following a contract announcement. Vasco had rallied strongly this week before today.
- Previously covered: Ambarella, Spherix, Envivio, Youku, Viggle, Castlight/Benefitfocus, Care.com, Ultra Clean, InterCloud, Perceptron, Violin Memory, Amtech
Mar. 17, 2015, 11:02 AM
- Chinese solars, many of which remain sharply below their 52-week highs, are among the standouts on a morning in which the Nasdaq is off 0.2%.
- JinkoSolar (JKS +2.8%), which was down premarket following news of a fire at one of its plants, is among the gainers. As are JA Solar (JASO +3.3%), Daqo (DQ +5.3%), Yingli (YGE +7.1%), ReneSola (SOL +6.9%), Trina (TSL +5.6%), and China Sunergy (CSUN +2.1%). Canadian Solar (CSIQ +3.1%), which has extensive Chinese manufacturing ops, is also rallying.
- The gains come as WTI crude oil continues trading near $43/barrel. The Q4 results and full-year guidance provided by solar firms in February and March suggest oil (responsible for only a small % of global electricity output) isn't having a big near-term impact on solar investments.
Mar. 10, 2015, 3:10 PM
- With the Nasdaq down 1.4%, a long list of tech names are posting major declines. Meanwhile, only a handful of tech companies are up more than 2%.
- Notable decliners include hard drive giant Seagate (STX -4.4%), VoIP service/app provider magicJack (CALL -5.6%), telecom equipment maker Comtech (CMTL -8.8%), flash controller IC vendor Silicon Motion (SIMO -5.2%), Wi-Fi hardware vendor Ruckus (RKUS -8.7%), online ad retargeting platform Criteo (CRTO -5.1%), haptic tech developer Immersion (IMMR -6.4%), supercomputer maker Cray (CRAY -4.6%), online coupon code provider RetailMeNot (SALE -5.5%), and solar plays JinkoSolar (JKS -5.6%), Daqo (DQ -9.8%), and Enphase (ENPH -8.9%).
- Immersion has more than given back the Monday gains it saw after Apple, which relies on a proprietary haptic solution that some think infringes on Immersion's IP, unveiled a 12" retina MacBook with a pressure-sensitive trackpad. Solar stocks are reversing course after rallying in recent weeks with the help of good earnings news and YieldCo hopes.
- Previously covered: Cybersecurity stocks, Canadian Solar/ReneSola, Qihoo, Electronic Arts
- Notable gainers: Nvidia, MicroVision, Energous, Weibo
Mar. 3, 2015, 3:07 PM
- With the Nasdaq down 0.6%, the number of tech companies posting outsized declines easily surpasses the number posting significant gains.
- Chinese firms are well-represented on the ranks of notable decliners. In addition to Alibaba, the list includes CDN owner ChinaCache (CCIH -4.6%), mobile app developer Cheetah Mobile (CMCM -9.8%), solar module vendor Yingli (YGE -4%), polysilicon provider Daqo (DQ -5.1%), real estate sites SouFun (SFUN -4.5%) and Leju (LEJU -4.3%), and data center owner 21Vianet (VNET -2.9%).
- Other decliners include chip equipment giant Applied Materials (AMAT -4.2%), seismic tech provider Geospace (GEOS -4.9%), VoIP infrastructure hardware/software firm Sonus (SONS -4.7%), IT services firm WidePoint (WYY -3.7%), auto site TrueCar (TRUE -7.4%), and online grocery coupon provider Coupons.com (COUP -5.2%).
- SouFun fell hard yesterday following news 58.com is buying real estate site Anjuke. Many Chinese tech firms sold off last Friday as the yuan made 3-year lows against the dollar.
- Previously covered: Seagate/Western Digital, Micron, Overstock
- Notable gainers: Veeva, Gogo, Vringo, Finjan, Aviat
Mar. 2, 2015, 12:49 PM
Feb. 27, 2015, 2:59 PM
- Today's notable tech gainers include IP licensing firm VirnetX (VHC +8.1%), ultracapacitor maker Maxwell (MXWL +4.7%), local services marketplace Angie's List (ANGI +5.9%), voice processor developer Audience (ADNC +5.4%), Ethernet/Wi-Fi hardware maker Extreme Networks (EXTR +3.5%), Chinese polysilicon vendor Daqo (DQ +8.3%), Chinese mobile game published Sky-mobi (MOBI +9.8%), professional video hardware/software maker Avid (AVID +5.2%), and optical component vendors NeoPhotonics (NPTN +11%) and Oclaro (OCLR +5.2%).
- Notable decliners include cloud HR/financials software leader Workday (WDAY -3.5%), cloud IT service desk software leader ServiceNow (NOW -3.7%), industrial laser maker IPG Photonics (IPGP -3.1%), FPGA/mobile sensor hub maker QuickLogic (QUIK -4.5%), and NAND controller/4G transceiver vendor Silicon Motion (SIMO -4%). The Nasdaq is down 0.5%.
- Initially up post-earnings, Workday is now down 9% since beating FQ4 revenue estimates and offering in-line FY16 revenue guidance on Wednesday afternoon. Heavily-shorted VirnetX is up 33% since announcing on Feb. 18 the USPTO had denied five Apple patent review petitions. Maxwell (also heavily shorted) is up 17% since an insider buy was disclosed a week ago. Sky-mobi is up 20% since Rosenblatt Securities provided bullish coverage yesterday.
- Previously covered: Chinese Web/mobile stocks, SanDisk, Autobytel, DigitalGlobe, GoPro, Immersion, MoSys, Resonant, Infoblox, Aruba, UniPixel, Autodesk, Universal Display, TubeMogul, Nimble Storage
Feb. 12, 2015, 4:02 PM
- SunEdison (SUNE +4.2%), Yingli (YGE +6.5%), Daqo (DQ +7.7%), Trina (TSL +4.3%), Canadian Solar (CSIQ +6.2%), and JinkoSolar (JKS +4.7%) took part in today's market rally in a big way as WTI crude rose 4.9% to $51.25/barrel. The Nasdaq closed up 1.2%.
- Chinese solar names also rallied strongly on Monday. The industry as a whole got some favorable PR on Tuesday when Apple announced it's backing an $850M California First Solar project.
Feb. 5, 2015, 11:32 AM
- Daqo (NYSE:DQ) has priced a 1.54M-share follow-on offering at $19.50, 11% below yesterday's close and good for gross proceeds of $30M. Net proceeds will be used for "general corporate purposes, including studying the feasibility of further expansion of its business, and working capital."
- The Chinese polysilicon maker had $30M in cash at the end of Q3, and $246.4M in borrowings. A $150M mixed shelf filing (enables future stock/warrant offerings) was posted in December.
Feb. 3, 2015, 10:59 AM
- Solar stocks are adding to yesterday's gains in a big way (TAN +3.6%) as oil prices (and oil/gas stocks) continue their recent rally: WTI crude is up $1.51 today to $51.08/barrel. The Nasdaq is close to breakeven.
- Also possibly helping solar firms: Canadian Solar's (CSIQ +21.2%) $265M deal to buy North American solar project developer Recurrent Energy from Sharp. The deal, which CSIQ estimates spells a $2.3B+ revenue opportunity, acts as a fresh vote of confidence for the downstream U.S. solar market in the wake of oil and natural gas' big declines.
- Notable gainers (besides CSIQ): FSLR +4%. SPWR +5.1%. JKS +8%. JASO +6.5%. SOL +7.1%. VSLR +6.3%. ASTI +7.7%. CSUN +7.7%. YGE +4.7%. HSOL +8.8%. DQ +3.4%. ENPH +5.8%. TSL +5.5%.
Feb. 2, 2015, 12:49 PM
Feb. 2, 2015, 11:30 AM
- WTI crude oil soared above $48/barrel on Friday after ISIS attacked the Iraqi city of Kirkuk, and is holding its ground today. Oil/gas producers are rallying, and so are beaten-down solar firms (TAN +2.2%).
- Notable gainers: FSLR +6%. SCTY +9.2%. SUNE +5.5%. SPWR +4.9%. TSL +6.6%. JKS +4.8%. CSIQ +4.6%. DQ +13.2%. VSLR +4.4%. JASO +3.8%. ENPH +3.4%. HSOL +3.6%. YGE +4.3%. ASTI +3.1%. SOL +3.4%.
- RBC made a contrarian call on Friday, upgrading SunPower, JA Solar, and Trina to Outperform. A long list of U.S. and Chinese solar firms are expected to post Q4 results this month.
Jan. 26, 2015, 2:09 PM
- Though WTI crude is still below $46/barrel and the Nasdaq is only up 0.3%, beaten-down solar stocks are posting big gains (TAN +3.9%). Quite possibly helping: Pres. Obama has said the U.S. will help finance an Indian effort to install 100GW of solar capacity by 2022.
- The head of an Indian think tank estimates such an effort would cost $160B. India says it's seeking $100B worth of investments over 7 years. The country's bureaucracy/red tape has often stalled major foreign investments; the new government has repeatedly promised to change that.
- First Solar (FSLR +4.1%) and SunEdison (SUNE +4.1%) are among the companies to have struck deals for Indian solar projects. SunEdison has announced plans to invest up to $4B in an Indian solar manufacturing plant through a JV. First Solar and Trina (TSL +5.4%) are weighing plans to build their own local plants.
- Other notable gainers: SCTY +4.7%. JKS +7.5%. SOL +5.8%. SPWR +2.9%. CSIQ +4.6%. JASO +4.4%. RGSE +3.7%. ASTI +9.3%. HSOL +3.2%. DQ +3.7%.
Daqo New Energy Corp. is engaged in the manufacture and sale of polysilicon and silicon wafer. Its products include polysilicon, silicon wafers, and solar modules. The company was founded on November 22, 2007 and is headquartered in Wanzhou, China.
Sector: Industrial Goods
Industry: Industrial Equipment & Components
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