ReneSola: Still Hanging By A Thread
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EnerTuition • 36 Comments
ReneSola: Do You Want To Buy This Lottery Ticket Ahead Of Earnings?
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EnerTuition • 115 Comments
Jun. 5, 2015, 3:42 PM
- The European Union has applied sharp tariffs on Chinese solar-panel makers Canadian Solar (CSIQ +5.5%), ReneSola (SOL +8.8%) and ET Solar, kicking the companies out of a pact with the Chinese industry that allowed them to export to Europe with minimal tariffs.
- The three companies were found to be in violation of the 2013 agreement that required the export of solar panels above a minimum price and abide by several other conditions.
- Among other violations, CSIQ was charged with offering unreported benefits to its customers in Europe to buy their panels, effectively lowering the sales price below the minimum import-price set by the agreement.
- Earlier: Solar stocks rally following JA's buyout offer, Yingli's results
Jun. 5, 2015, 1:26 PM
- Solar stocks are doing well (TAN +1.1%) on a quiet morning for equities after JA Solar disclosed a going-private offer from its CEO, and beaten-down Yingli provided mixed Q1 results (revenue beat, EPS missed) and better-than-feared guidance.
- Aside from JA/Yingli, gainers include First Solar (FSLR +3.4%), Canadian Solar (CSIQ +3.6%), JinkoSolar (JKS +4.1%), ReneSola (SOL +10.8%), China Sunergy (CSUN +5.4%), Trina (TSL +3%), Sky Solar (SKYS +2.9%), and Daqo (DQ +4.2%).
- Chinese solar names might also be benefiting from an overnight rally in Shanghai (see Chinese Internet stocks). First Solar, meanwhile, has seen a (questionable) rumor about a Wal-Mart buyout offer surface.
Jun. 5, 2015, 12:47 PM
Jun. 2, 2015, 3:02 PM
- In addition to missing Q1 estimates, ReneSola (NYSE:SOL) is guiding for Q2 revenue of $250M-$300M, well below a 2-analyst $387.9M consensus. A strategy shift towards focusing on solar project development relative to wafer/module sales appears to be at least partly responsible.
- Business details/financials: Q1 wafer/module shipments totaled 691.5MW, down -7.1% Q/Q and -2.6% Y/Y. Gross margin was 10.5% vs. Q4's 13.2% and Q1 2014's 10.6%, but is expected to rise to 16%-18% in Q2. Operating expenses fell 12.5% Y/Y to $46.2M. ReneSola ended Q1 with $228.1M in cash, $723M in bank borrowings, and $62.9M in convertible notes.
- The company currently holds 96.1MW of solar projects - 4 U.K. projects featuring 71MW of capacity, and 4 Eastern European projects featuring 25.1MW. Project opportunities are being "explored" in several developed markets.
- CEO Xianshou Li: "At the beginning of 2015, we began to scale back our global OEM capacity and focus more on our downstream project opportunities ... As we continue with this strategic transition into the downstream services and project area, we believe we will be better positioned to achieve long-term profitability."
- Q1 results, PR
Jun. 2, 2015, 7:35 AM
- ReneSola (NYSE:SOL): Q1 EPADS of -$0.18 misses by $0.14.
- Revenue of $349M (-15.9% Y/Y) misses by $19.18M.
Jun. 1, 2015, 5:30 PM
May 19, 2015, 11:26 AM
- Solar stocks are selling off for the second day in a row (TAN -1.7%) as Yingli (YGE -42.4%) plunges into penny stock territory after disclosing in its 2014 annual report (filed after the close last Friday) its financial woes "raise substantial doubt about [its] ability to continue as a going concern."
- Decliners include Chinese firms JinkoSolar (JKS -3.3%), ReneSola (SOL -6.4%), Trina (TSL -4.8%), and China Sunergy (CSUN -6.5%), as well as China-exposed Canadian Solar (CSIQ -4.8%), which yesterday held its investor day (presentations can be found here).
- U.S. firms SunPower (SPWR -3%) and Enphase (ENPH -2.9%) are also off. Enphase's decline comes in spite of an upgrade to Strong Buy from Needham.
- Yingli CFO Wang Yiyu downplays his company's disclosure, which has sparked fears Yingli will be the next Suntech or LDK Solar. "Potential risks don’t mean they will happen and don’t mean Yingli is facing or will face such risks. They shouldn’t cause an overreaction.”
- Wolfe Research's Gordon Johnson (formerly with Axiom, bearish on solar for a long time) thinks Yingli's disclosure has "caused a lot of investors to overlook massive debts on the balance sheets of pretty much EVERY publicly traded Chinese solar company," and that a Yingli liquidation could affect credit access for peers.
- RBC's Mahesh Sanganeria, however, argues Yingli's problems are company-specific. "It is well understood by now that global solar demand is strong this year, as evidenced by a number of large contract signing announcements, active solar project development and acquisition, and positive company earnings." He does admit solar cell/module prices have been falling, but suggests this is partly due to lower costs, along with a weak yen/euro and lower polysilicon prices.
May 11, 2015, 3:02 PM
- Canadian Solar (CSIQ +5.3%) and SolarEdge (SEDG +11.3%) are adding to their big Friday gains on a quiet day for tech. ReneSola (SOL +10%), Daqo (DQ +4.9%), Enphase (ENPH +2.8%), and JinkoSolar (JKS +2.2%) are also doing well. An overnight rally in Shanghai (followed a fresh PBOC rate cut) could be helping the Chinese names.
- Canadian is up 14% since Thursday morning's Q1 report (I, II). SolarEdge is up 32% since delivering very strong results/guidance on Thursday afternoon, making new post-IPO highs along the way. Daqo is more than erasing the Friday losses seen following the company's mixed Q1 results.
- A bullish SA PRO column on SolarEdge from Casual Analyst came out of embargo over the weekend. Among other things, the author argues SolarEdge's power optimizer/inverter-based systems are superior to Enphase's microinverter-based systems on a cost basis (though Enphase has an edge in simplicity), that SolarEdge's architecture has lower maintenance costs, and that the architecture is well-suited for integrating module-level power electronics.
May 8, 2015, 4:06 PM
- Solar stocks outperformed today (TAN +2.9%) amid a 1.2% gain for the Nasdaq. The gains arrived after solar power optimizer/inverter maker SolarEdge (SEDG +18.4%) trounced FQ3 estimates and provided equally strong FQ4 guidance in its first post-IPO earnings report. Standouts included Canadian Solar (CSIQ +8.3%), JinkoSolar (JKS +4.5%), ReneSola (SOL +5.6%), JA Solar (JASO +4%), Trina (TSL +4.4%), and Vivint (VSLR +5.3%).
- SolarEdge, which counts SolarCity and Vivint as clients (among others), says it "continued to see strong growth in the United States and Europe both in the residential and commercial markets" in calendar Q1. In a column under embargo until 7:54AM ET Saturday, SA PRO author Casual Analyst argues SolarEdge's offerings have "an architectural edge" against top microinverter maker Enphase. SolarEdge is now up 55% from its $20 March IPO price.
- Canadian's gains come a day after the company (shifting to a business model where it holds/operates solar project assets for a YieldCo instead of selling them) offered light Q2 guidance to go with a Q1 beat.
- Roth defended Canadian today. "The Q2 guide highlights the lack of contribution by the rich pipeline of Canadian historical projects and the weaker economics of the core manufacturing business ... Q2 may represent an 'air pocket' until yieldco details emerge, which will likely highlight the value creation enabled by the new entity."
Apr. 20, 2015, 12:48 PM
- China connected 5.04GW of solar capacity (nearly equal to France's) in Q1, the National Energy Administration reports. The figure brings China's cumulative installations to 33GW, and suggests the country is on its way to hitting a full-year target of 17.8GW.
- Utility-scale projects accounted for 4.38GW of the installations, and 1.1GW of capacity was installed in northwestern Xinjiang province. The fact China isn't setting specific 2015 targets for utility and distributed installations (not the case in 2014) has widely been expected to make the full-year target easier to hit.
- Chinese solar firms are delivering a mixed performance following the announcement. ReneSola (SOL +5.6%), JinkoSolar (JKS +2.9%), and Trina (TSL +2.4%) are outperforming (the Nasdaq is up 1.2%), Canadian Solar (CSIQ +1.2% - has healthy Chinese exposure) and JA Solar (JASO +1%) are up moderately, and Yingli (YGE -1.5%) and Daqo (DQ -5.2%) are lower.
- Yingli announced this morning it's developing a 50MW solar plant in China's Hebei province, and has received RMB300M ($48M) in financing for it. Construction and grid interconnection is expected to be finished by the end of May.
- A week ago: Chinese solars up strongly after Shanghai rallies, RBC makes bull case
Apr. 17, 2015, 3:07 PM
- With the Nasdaq off 1.7% amid a broader market selloff, many tech companies are posting outsized losses, and only a few (excluding microcaps) are posting 2%+ gains.
- Notable decliners include Russian online payments leader Qiwi (QIWI -7.8%), Chinese solar firms JinkoSolar (JKS -5.3%), ReneSola (SOL -8.4%), Trina (TSL -5.1%), and Yingli (YGE -5.2%), Chinese online real estate play Leju (LEJU -7.8%), analog/mixed-signal chipmakers ON Semi (ONNN -5.3%) and InPhi (IPHI -4.7%), enterprise flash storage vendor Violin Memory (VMEM -5.2%), online travel deals platform Travelzoo (TZOO -6.4%), and smart grid hardware/software vendor Silver Spring (SSNI -4.6%).
- Profit-taking appears to be a big culprit in many instances. Qiwi (like other Russian firms) had rallied strongly in recent weeks thanks to the ruble and oil's rallies. Chinese solars have also been early-2015 standouts, and so have ON Semi and Silver Spring; the latter has recently announced deals (I, II) with Paris' street light/traffic control operator and Australian energy firm AusNet. Travelzoo is returning a chunk of yesterday's big post-earnings gains.
- Previously covered: AMD, ServiceNow, cloud/analytics stocks, Etsy, Wayfair
- Notable gainers: Seagate, 58.com, ZBB Energy
Apr. 13, 2015, 12:17 PM
- Chinese solar stocks are among today's standouts after Shanghai rose 2.2% and Hong Kong rose 2.7% overnight, continuing recent rallies. U.S. solar firms are largely missing out on the fun.
- ReneSola (SOL +13%) is today's biggest gainer. Yingli (YGE +6.2%), JA Solar (JASO +3.2%), Trina (TSL +3.4%), Daqo (DQ +2.7%), and China Sunergy (CSUN +5.6%) are also faring well, as is China-exposed Canadian Solar (CSIQ +2.4%).
- An upbeat RBC note could be helping the group: The firm notes there haven't been any Q1 warnings yet - Trina and Yingli warned a year ago - and that Beijing's 17.8GW 2015 installation target is generally seen as reasonable. It adds European and Japanese solar demand remains healthy, and thinks recent gross margin pressures will abate as ASPs stabilize and cost reductions continue.
- RBC sees Trina outperforming its peers "given its capacity expansion plan, strong balance sheet, and downstream business ramp." Earlier today, the company announced a deal to supply 116MW of modules for a 231MW Japanese project.
- Daqo is now up 11% since posting mixed Q4 results and offering an upbeat 2015 outlook on Friday morning.
- Update: Bernstein is also out with a bullish note: The firm expects the solar module market to continue consolidating, and for larger firms to take more share from smaller rivals.
Apr. 2, 2015, 1:40 PM
- While several solar stocks are rallying today, ReneSola's (NYSE:SOL) gains are in a league of their own. The Chinese solar cell/module maker has seen 1.19M shares traded vs. a 3-month daily average of 885K.
- ReneSola posted more modest gains yesterday amid a solar stock rally. Shares are up 22% since the company posted a Q4 beat and light guidance on March 4.
Apr. 1, 2015, 2:36 PM
- Though the Nasdaq is down 0.8% and the S&P 0.6%, solar stocks remain in rally mode. The Guggenheim Solar ETF (TAN +1%) is now up 32% YTD, following a rough 2014.
- SunEdison (SUNE +3.8%) is among today's standouts; its TerraForm Power YieldCo announced this morning it's buying 521MW of wind projects from Atlantic Power for $350M. Trina is also faring well after announcing the sale of a 50MW U.K. solar plant.
- Other standouts include Chinese plays ReneSola (SOL +2.7%), Yingli (YGE +2.2%), JinkoSolar (JKS +5.2%), JA Solar (JASO +2.5%), and China Sunergy (CSUN +7.6%).
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.
ReneSola Ltd. engages in the manufacture of solar wafers and modules. The company operates through two segments: Wafer Sales and Module Sales. The Wafer sales segment includes the manufacture and sale of monocrystalline and multicrystalline solar wafers and processing services. The Module Sales... More
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