LDK Solar Co., Ltd.NYSE
Jul. 27, 2014, 10:18 PM
- The Commerce Department has imposed preliminary anti-dumping tariffs ranging from 26%-165% on Chinese and Taiwanese solar cell/module imports. The tariffs come on top of the anti-subsidy tariffs imposed in early June, and in spite of a WTO ruling declaring U.S. solar tariffs violate global trade rules.
- Among the affected exporters,Trina (NYSE:TSL) is getting off the lightest: Between the June and July tariffs, it's dealing with a combined rate of 29.3%.
- Yingli (NYSE:YGE), Canadian Solar (CSIQ), and Hanwha (NASDAQ:HSOL) are set to pay a combined rate of 47.27%, and Suntech (NYSE:STP) a combined rate of 49.24%. ReneSola (NYSE:SOL) and JinkoSolar (NYSE:JKS) have to pay a 58.87% anti-dumping rate.
- Chinese module makers can pay 2012 tariff rates instead if they use Chinese (rather than Taiwanese) cells. Those rates are generally a little milder, often ranging from 24%-31%.
- "The tariffs in this case are so high as to prohibit basically any manufacturer from selling at a competitive price in to the U.S," says GTM Research's Shayle Kann. A final DOC ruling on the tariffs is expected around Dec. 15, and an ITC ruling on Jan. 29. (the full ruling - .pdf)
- U.S. rivals First Solar (NASDAQ:FSLR) and SunPower (NASDAQ:SPWR) stand to benefit. Their shares rose following the June tariff announcement.
- Other Chinese solar firms: JASO, CSUN, LDK
Apr. 16, 2014, 9:43 AM
- The U.S. Energy Department plans to offer up to $4B in loan guarantees to renewable energy projects, focusing on advanced electric grid technology and storage, biofuels that can be used in conventional vehicles, energy from waste products and energy efficiency improvements.
- Despite the high-profile collapse of Solyndra, the Obama administration believes most of its energy investments have done well, and it credits the program with strengthening the U.S. solar industry.
- Solar stocks: TAN, JASO, SPWR, TSL, FSLR, LDK, CSIQ, YGE, SOL, JKS, CSUN, SCTY, HSOL, EMKR, SUNE, DQ.
- Battery related names: PLUG, BLDP, CBAK, ZBB, ABAT, ULBI, ENS, HPJ.
- EV cars: TSLA.
Apr. 1, 2014, 1:12 PM
- A day after being delisted by the NYSE, and four days after announcing a debt restructuring deal, LDK Solar (LDK) has begun trading on the pink sheets under the symbol LDKSY.
- Shares are currently changing hands at $0.40, 60% below their last NYSE trade of $1.01, which took place on Feb. 21. They opened for trading at a mere $0.10 before moving higher.
Mar. 31, 2014, 2:27 PM
- The NYSE declares LDK Solar (LDK) shares unsuitable for trading on account of their "abnormally low" price. LDK's last trade (on Feb. 21) was at $1.01.
- The struggling solar module vendor announced a debt restructuring deal for its offshore ops on Friday. A Cayman Islands court is set to evaluate it.
Mar. 28, 2014, 5:47 PM
- Holders owning 60% of LDK Solar's (LDK) 10% senior notes due 2014, and 79% of its convertible preferred shares, have backed a restructuring deal for the company's offshore assets.
- Both the senior note and preferred share holders are being offered $0.20 on the dollar in cash (subject to $50M claim caps), along with equity equal to 8.736%-15% of the claim (paid at $1.586/share) and convertible bonds yielding 5.535%.
- LDK has also received a commitment letter from shareholder HRX to provide up to $14M in interim financing.
- A Cayman Islands court will evaluate the deal "on or around" April 2. LDK filed a liquidation petition in the Cayman Islands roughly a month ago.
- Shares have been halted since Feb. 24.
Mar. 3, 2014, 12:25 PM
- Struggling, debt-laden LDK Solar (LDK) has filed a winding-up (liquidation) petition in the Cayman Islands on grounds of insolvency. Joint provisional liquidators have been appointed by a local court. (PR)
- A further hearing of the petition is set for April 2, during which creditors can register complaints. LDK says talks with debtholders remain ongoing.
- The company insists it has "no intention of initiating any debt restructuring proceedings" for its Chinese ops, and that its Chinese bank group has "expressed unanimous support" for continued talks with offshore creditors.
- LDK had over $2.8B in debt at the end of Q3, and $226M in cash. The company had agreed to a series of debt forbearance deals with creditors before making its filing.
Jan. 17, 2014, 12:48 PM
Jan. 2, 2014, 12:09 PM
- On the first trading day of 2014, solar stocks are picking up right where they left off in 2013. Today's gains come in spite of a general selloff in equities.
- A bullish Deutsche note could be helping the group: The firm's checks lead it to think cumulative Chinese solar installations will pass a 2014 government target of 12GW this year. Last month, Deutsche defended Chinese solar names in the face of concerns about a possible 4GW 2014 cap on local utility-scale installations.
- Yingli (YGE +14.2%) is headlining today's winners. The company has announced it's forming a JV with a unit of Datong Coal Mine to build solar power plants in the Chinese city of Shuozhou. Hanwha, which has announced a Belgian module supply deal, is also up sharply.
- Other big gainers: CSIQ +9.2%. FSLR +4.9%. SOL +7.3%. JASO +6.7%. JKS +6.2%. SCTY +6.1%. TSL +6.1%. LDK +4.6%. SUNE +3.1%. CSUN +7.8%.
- Solar ETFs: KWT +2.9%. TAN +4.4%.
Dec. 31, 2013, 2:33 PM
- Taiwan's Economic Daily News reports solar wafer prices, depressed for a very long time, have risen back to the $0.98-$0.99 range. In addition, prices for wafers used to produce high-efficiency solar cells have topped $1, and a 5% price increase is expected in January.
- Crashing wafer prices have forced suppliers such as SunEdison (SUNE +0.2%) to terminate or amend long-term wafer supply deals that involved relatively high prices. But improving demand (fueled by U.S./Chinese solar installations) and restrained capacity growth are leading business conditions to stabilize.
- Other solar wafer suppliers: SOL, LDK.
Dec. 27, 2013, 9:59 AM
- Debt-laden LDK Solar (LDK +2.1%) has submitted two refinancing proposals to holders of its 10% senior notes due 2014.
- The company is offering to either repurchase the debt for $0.20 on the dollar, or to pay 8.74% of the claims via equity (based on a share price of $1.586) and the remainder via convertible debt carrying very low interest rates (based on SHIBOR) and a very high conversion price ($20).
- LDK has also offered financial projections going out to 2018; investors are likely to take the numbers with a large dose of salt. LDK is currently projecting 2014 revenue and EBITDA of $1.24B (far above a $748M consensus) and $107M, respectively. Module shipments are expected to total 781MW in 2014, and grow to 1.41GW by 2017.
- LDK has already struck multiple forbearance agreements with creditors. The company ended Q3 with over $2.8B in debt, and just $226M in cash. Its equity (market cap) currently amounts to a mere $279M.
Dec. 10, 2013, 3:12 AM
- LDK Solar (LDK) enters a new 30-day forbearance arrangement for its 10% senior notes.
- The renewed arrangement relates to interest due on Aug. 28, 2013 that remains unpaid.
- LDK: "It is LDK Solar's intention to find a consensual solution to its obligations under the Notes as soon as possible and LDK Solar remains hopeful that it will be able to achieve that goal."
- This marks the fourth time LDK has been forced to seek forbearance - it previously did so on 9/26, 10/28, and 11/26.
Dec. 6, 2013, 12:25 PM
- Even as markets rally in response to a favorable NFP report, solar stocks are giving back some of this year's gains. ReneSola (SOL -10.3%), which tumbled yesterday after positing Q3 results and announcing it's shuttering a polysilicon plant, is the biggest decliner.
- Credit Suisse has cut its ReneSola PT to $3 from $5, while reiterating an Underperform. The firm notes the plant shutdown removes 40% of ReneSola's polysilicon capacity, and undermines arguments the company will benefit from rising polysilicon prices in 2014/2015. It's also worried about ReneSola's "relatively low margins" and limited downstream (solar plant) exposure.
- One positive piece of industry news: A Japanese trade group estimates Japan's solar cell/module shipments rose 25% Q/Q and 231% Y/Y in Q3 to 2.075GW. Imports accounted for 58% of shipments, and rose 30% Q/Q and 540% Y/Y.
- Rising shipments to Japan have already lifted the sales and margins of many Chinese module suppliers. First Solar (FSLR -1.9%) announced its entry into the market last month.
- Notable solar decliners: YGE -6.7%. TSL -3.5%. CSIQ -2.7%. JKS -2.6%. LDK -2.1%. JKS -2.6%. JASO -2.2%.
- Solar ETFs: KWT, TAN
Nov. 26, 2013, 10:58 AM
- With a lot of good news having been priced in this year, several Chinese solar stocks are selling off after JA Solar and LDK Solar both provided mixed Q3 numbers and fairly good guidance (I, II). LDK (LDK -2.5%), which continues to deal with major liquidity/debt payment issues (the company just reached a new two-week debt forbearance deal with creditors), has given up its premarket gains.
- Notable decliners: STP -10.4%. YGE -3.8%. SOL -2.9%. DQ -2.7%. TSL -2%.
Nov. 26, 2013, 9:29 AM
- LDK Solar (LDK) is guiding for Q4 revenue of $200M-$250M, up from a Q3 level of $156.6M and well above the $136M forecast by the one analyst providing a Q4 revenue estimate.
- 384.7MW of solar wafers were shipped in Q3, in-line with guidance of 350MW-450MW. Module shipments of 78.7MW were near the high end of a guidance range of 60MW-80MW. LDK expects wafer shipments to rise to 480MW-520MW in Q4, and module shipments to rise to 120MW-160MW.
- While many Chinese solar peers now have healthy gross margin's, LDK's Q3 gross margin was -24%. That's better than Q2's -46.9%, but down from -11.2% a year ago.
- The company ended Q3 with $225.9M in cash/equivalents and short-term pledged bank deposits, down from $288.4M at the end of Q2.
- Though LDK expects its recently-obtained $256M credit facility will help it ramp production, it says the funds are "insufficient to solve even our short-term liquidity associated with our offshore indebtedness," and that it's continuing to work with debtholders to "negotiate a consensual solution." LDK ended Q3 with over $2.8B in debt, over $2.4B of which consisted of short-term borrowings and the current portion of long-term borrowings.
- Q3 results, PR
Nov. 26, 2013, 5:57 AM
- LDK Solar (LDK): Q3 EPS of -$0.65 beats by $0.17.
- Revenue of $156.6M misses by $18.3M. (PR)
Nov. 26, 2013, 12:05 AM