Trina Solar Follows First Solar Into Elite Sub-$0.40 Per Watt Territory
EnerTuition • 67 Comments
EnerTuition • 67 Comments
Trina Solar Had A Great Quarter, But Margins Are Unsustainable
EnerTuition • 24 Comments
EnerTuition • 24 Comments
Dec. 17, 2015, 12:04 PM
- Trina (TSL -2.8%) is breaking up with systems business unit (SBU), which handled downstream solar projects, into a China SBU and an international SBU. The former will handle "ground-mounted PV power plants in China, including development and sales, engineering procurement construction ("EPC"), and operation & maintenance ("O&M")," and the latter international solar plant development.
- As part of the shakeup, VP and SBU chief Qi Lin has resigned. VP Jiqing Gao has been named head of the China SBU.
- Trina had 251.9MW of grid-connected projects at the end of Q3, and has forecast 700MW-750MW of its 2015 module shipments will go to the company's downstream projects. Shares are following markets lower a day after joining many solar names in rallying on news of a Congressional deal to extend U.S. solar tax credits.
Dec. 16, 2015, 9:52 AM
- Solar stocks are flying higher (TAN +6.4%) after House Republicans unveiled (as part of a compromise with Democrats that involved lifting a U.S. oil export ban) that would keep the solar investment tax credit (ITC, has been set to expire at the end of 2016) at 30% through 2019, before being phased down through 2022.
- In addition, the wind production tax credit (PTC) would be extended through 2020, albeit with a phase-down from a current level of 2.3 cents per kWh that would start in 2017.
- U.S. solar firms are naturally among the biggest gainers: The group includes SolarCity (SCTY +24.6%), SunEdison (SUNE +17%), First Solar (FSLR +8.5%), SunPower (SPWR +14.3%), Sunrun (RUN +23.1%), TerraForm Power (TERP +8.3%), 8point3 Energy (CAFD +5.6%), Solar3D (SLTD +4.6%), and RGS Energy (RGSE +6.9%). SunEdison/TerraForm also have healthy wind exposure. Enphase (ENPH +29.1%) is soaring on the news and a Roth upgrade to Buy.
- Israel's SolarEdge (SEDG +14.4%), which has strong exposure to U.S. installers, is also surging. Other winners include Canadian Solar (CSIQ +8.4%), Trina (TSL +4.9%), JinkoSolar (JKS +7.3%), JA Solar (JASO +3.1%), China Sunergy (CSUN +3.8%), and TerraForm Global (GLBL +5.6%). JA Solar has also been upgraded to Buy by Roth.
Dec. 14, 2015, 12:44 PM
Dec. 14, 2015, 9:21 AM
Dec. 14, 2015, 7:43 AM
- Trina Solar (NYSE:TSL) +14.1% premarket after saying it received a preliminary going-private offer for $11.60/ADS, a 21.5% premium to its stock price on Dec. 11.
- The proposal by TSL's CEO and founder Jifan Gao, as well as a buyer group including Shanghai Xingsheng Equity Investment, would buy all outstanding shares of the company not already owned by Gao and the bank.
Dec. 11, 2015, 1:18 PM
- Believing a 2013 deal (referred to as the UT agreement) with the EU through which Trina (TSL -2.9%) are other Chinese solar firms promised to sell their cells/modules above a fixed minimum price "unfairly [limits] the Company's growth potential in the European region, and are disruptive to the Company's ongoing global expansion strategy," Trina has pulled out of the program, and will now rely on tariff-free non-Chinese facilities to export to the EU.
- Trina: "[T]he prohibition of manufacturing modules in overseas facilities, regardless of whether the modules will be sold to the EU or to non-EU markets is an obvious misapplication to the UT agreement. Furthermore, we believe the current MIP does not reflect the ongoing market trends in the solar sector, particularly as average selling prices in major markets continue to decline at a faster than expected rate, with downward pressure anticipated to continue for the foreseeable future."
- The move comes six months after Trina announced it's partnering with India's Welspun Energy to build a 2GW Indian solar manufacturing plant. The companies are investing $500M.
Dec. 3, 2015, 3:02 PM
- The Nasdaq is down 1.7% and the S&P 1.4%, but many solar names still have healthy gains for the day. A rally in oil prices ahead of a Friday OPEC meeting (WTI crude is up 2.9% to $41.10/barrel) could be helping, as might hopes for a new emissions-reduction agreement at the Paris climate conference.
- Heavily-shorted SolarCity (SCTY +3%) is adding to its big Tuesday/Wednesday gains. Beaten-down SunEdison (SUNE +5.3%) is also higher, as are SunPower (SPWR +3.3%), Trina (TSL +4.1%), ReneSola (SOL +3%), Enphase (ENPH +5.4%), and Sunrun (RUN +6.5%).
- ETFs: TAN, KWT
Nov. 23, 2015, 9:28 AM
- Trina (NYSE:TSL) has dropped to $9.19 premarket after beating Q3 revenue estimates, missing on EPS, and upping its full-year module shipment forecast to 5.5GW-5.6GW from 4.9GW-5.1GW (4.6GW-4.7GW to third parties). 700MW-750MW of 2015 shipments are still expected to go towards Trina's downstream solar projects.
- Financials: Hurting Q3 EPS: Gross margin was 17.4%, up 50 bps Y/Y but down 260 bps Q/Q. Trina attributes the Q/Q drop to ASPs dropping in most markets at a faster rate than cost per watt, as well as a mix shift towards China, India, and other emerging markets. Also: Trina recorded a $45M charge related to the settlement of a lawsuit involving bankrupt Solyndra. Excluding the charge, operating expenses were 11% of revenue ($87.3M) vs. 11.6% in Q2 and 10.9% a year ago. Trina ended Q3 with $486.1M in cash and $1.17B in bank borrowings ($1B short-term).
- Top-line performance: Q3 module shipments rose 38.3% Q/Q and 60.1% Y/Y to 1.7GW, topping guidance of 1.4GW-1.5GW (drove the revenue beat). 350MW of shipments were for Trina's own projects. Shipments are expected to total 1.5GW-1.6GW in Q4. 251.9MW of projects were connected to the grid, and record shipments were seen in China and the U.S.
- Various solar peers have also sold off post-earnings.
- Q3 results, PR
Nov. 23, 2015, 9:19 AM
Nov. 23, 2015, 7:36 AM
- Trina Solar (NYSE:TSL): Q3 EPS of $0.21 misses by $0.07.
- Revenue of $792.6M (+28.5% Y/Y) beats by $30.03M.
Nov. 22, 2015, 5:30 PM
Nov. 10, 2015, 11:14 AM
- SunEdison (SUNE -18.9%) has plunged to new multi-year lows after posting mixed Q3 results, cutting its full-year cash available for distribution (CAFD) guidance, and narrowing its full-year project delivery guidance. Canadian Solar (CSIQ -6.5%) has gone south in spite of beating estimates and providing above-consensus Q4 guidance.
- Solar peers are also off - the Guggenheim Solar ETF (NYSEARCA:TAN) is at its lowest levels since early October. U.S. decliners include First Solar (FSLR -6.2%), SolarCity (SCTY -6%), SunPower (SPWR -6.3%), Enphase (ENPH -8.1%), Solar3D (SLTD -4.6%), SunEdison's TerraForm Power (TERP -13.2%) YieldCo, and SunEdison acquisition target Vivint (VSLR -3.9%).
- International decliners include Chinese plays Trina (TSL -5.7%), ReneSola (SOL -7.1%), JinkoSolar (JKS -9.2%), and JA Solar (JASO -5.3%), as well as Israel's SolarEdge (SEDG -6.7%) and SunEdison's emerging markets-focused TerraForm Global (TERP -13.2%) YieldCo.
- “Right now I want the company to become more boring, Boring, and cash-flow generating," said embattled SunEdison CEO Ahmad Chatila on the Q3 earnings call. He reiterated SunEdison expects to build 3.3GW-3.7GW of projects in 2016; the company had once planned to build 4.5GW.
Oct. 16, 2015, 2:30 PM
- After bouncing strongly from their late-September lows over the last two weeks (a rally in crude prices/energy stocks helped), solar stocks are among the laggards (TAN -2.4%) on a day the Nasdaq and S&P are nearly flat.
- U.S. firms SolarCity (SCTY -5.3%), SunEdison (SUNE -3.6%), Enphase (ENPH -6%), Sunrun (RUN -2.5%), and RGS Energy (RGSE -6.5%) are among the decliners. Others include SolarEdge (SEDG -4.6%), Trina (TSL -2.3%), JinkoSolar (JKS -2.3%), and SunEdison's TerraForm Global (GLBL -2%) YieldCo.
- SolarCity reports earnings on Oct. 29, and rival Sunrun on Nov. 12.
Oct. 2, 2015, 4:03 PM
- Like various other names clobbered in recent weeks as markets went into risk-off mode, solar stocks posted outsized gains today, with the Guggenheim Solar ETF (NYSEARCA:TAN) more than erasing its big Monday losses. A rally in energy stocks (aided by higher crude prices) likely helped out. The Nasdaq rose 1.7%, and the S&P 1.4%.
- SunEdison (SUNE +14.7%), which continues trading at a fraction of its June/July highs thanks to debt/cash flow fears and apparent hedge fund selling, was a standout. SolarCity (SCTY +7.3%), which made a high-efficiency panel announcement earlier today, also fared quite well, as did SunEdison buyout target Vivint (VSLR +10.8%), SunEdison YieldCo TerraForm Power (TERP +12.9%), and fellow North American firms Canadian Solar (CSIQ +12.5%), First Solar (FSLR +6.5%), SunPower (SPWR +5.8%), and Enphase (ENPH +11.4%).
- In addition to Daqo, ReneSola, and Yingli (previously covered), Chinese winners included JinkoSolar (JKS +11.6%), Trina (TSL +6.7%), and JA Solar (JASO +5.7%).
Sep. 28, 2015, 1:41 PM
- Solar stocks are among the market's biggest casualties as the Nasdaq (down 2.5%) and energy stocks get battered. The Guggenheim Solar ETF (NYSEARCA:TAN) has made fresh 52-week lows, and is now down 49% from an April peak of $50.00.
- In addition to hedge fund darling SunEdison (down 17.4%, see prior coverage), major decliners include First Solar (FSLR -5.9%), SunPower (SPWR -9.1%), Canadian Solar (CSIQ -7.7%), SolarEdge (SEDG -11.1%), Enphase (ENPH -10.3%), Solar3D (SLTD -5.9%), Trina (TSL -9.4%), JinkoSolar (JKS -8.6%), and First Solar/SunPower YieldCo 8point3 Energy (CAFD -7.6%).
- SunEdison YieldCos TerraForm Power (TERP -8.5%) and TerraForm Global (GLBL -7.8%) are also off sharply, as is SunEdison acquisition target Vivint (VSLR -8.9%).
Aug. 25, 2015, 12:34 PM
- The Nasdaq is up 3.4% - a Chinese rate cut is helping - and solar stocks are among the day's standouts. The Guggenheim Solar ETF (TAN +7.4%) is now up 14% from a Monday morning low of $25.51, albeit still down 13% from where it traded going into last week.
- Today's gains come after Pres. Obama announced several new incentives meant to boost solar investment. Among them: $1B in additional loan guarantee authority for distributed energy projects, the unlocking of Property-Assessed Clean Energy (PACE) financing for solar installations involving single-family homes, and the creation of a HUD/DOE program to give homeowners "a simple way to measure and improve the energy efficiency of their homes, by increasing homeowners' borrowing power."
- The announcement follows the White House's early-August unveiling of its Clean Power Plan, which aims to cut carbon emissions by 32% by 2030, relative to 2005 levels. Solar still only accounts for less than 1% of U.S. electricity output; renewable sources collectively account for 13%, with hydro responsible for half of the total and wind about a third.
- It also follows the launch of Google's Project Sunroof, which (with the help of satellite imagery) provides would-be home solar installers with advise on installation size and financing options, among other things.
- Major gainers include First Solar (FSLR +8.4%), JinkoSolar (JKS +27.1%), Trina (TSL +17.2%), Canadian Solar (CSIQ +13.2%), SunPower (SPWR +6.6%), JA Solar (JASO +10.6%), China Sunergy (CSUN +12.3%), Yingli (YGE +7.3%), SolarEdge (SEDG +6.9%), and Daqo (DQ +5.9%).
- Cowen has launched coverage on Canadian Solar with an Outperform rating and $28.50 target. Meanwhile, First Solar thin-film module rival TSMC announced today it's shuttering its solar manufacturing ops, while citing a lack of scale/competitiveness.
Trina Solar Ltd. engages in the manufacture and sale of integrated solar-powered products. Its operation comprises production of mono- and multi-crystalline silicon ingots, wafers, cells and related products and the subsequent assembly and marketing of solar modules, which are panels packed with... More
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