Yingli Green Energy Holding Company LimitedNYSE
Yingli Solar Drops A Bombshell
EnerTuition • 45 Comments
EnerTuition • 45 Comments
Wed, Nov. 16, 10:09 AM
- SolarCity (SCTY -0.9%) is downgraded to Sell from Hold with a $16 price target by Axiom Capital's Gordon Johnson, a day before shareholders will vote on the proposed merger with Tesla.
- Johnson now predicts a 70% chance of the merger's approval but is highly critical, saying "Tesla investors either: (a) lack a very basic understanding of the solar market, or (b) lack a very basic understanding of accounting."
- Johnson also downgrades several other solar stocks (TAN -0.2%) - JA Solar (JASO -0.9%), Trina Solar (TSL +0.7%) and Yingli Green Energy (YGE -3.9%) - to Sell from Buy, citing an expected drop in support for solar in the U.S. following the Trump election.
- He also cites caution on Chinese module prices given profit-dilutive quotes being submitted by Chinese module companies in the government's Top Runner program.
Thu, Oct. 6, 3:24 PM
- Formerly bearish Axiom Capital analyst Gordon Johnson upgrades his rating on the solar energy sector (TAN +0.5%) by two notches to Overweight from Underweight, and raises his ratings on Yingli Green Energy (YGE +4.6%), Trina Solar (TSL +1.3%) and JA Solar (JASO +4.5%) to Buy from Sell, as well as SolarCity (SCTY -2.6%) to Hold from Sell.
- A key reason for Johnson's "new-found solar optimism" is China's decision to cut solar subsidies, which could result in ~25 GW of Chinese “pull-in” demand in H1 2017, suggesting a undersupply in the solar market that should push prices higher.
- Johnson believes the stronger demand will cause the prices of all kinds of solar equipment to surge, resulting in higher margins and multiples for many solar companies.
- Also: OTCPK:SUNEQ +63% (see earlier), CSIQ +0.7%, SPWR +0.3%, FSLR -0.3%.
Thu, Aug. 25, 12:43 PM
- Yingli Green Energy (YGE -3%) is maintained with a Sell rating by Axiom Capital's Gordon Johnson, who says the company likely will report its Q3 EBIT in the red which could worsen in 2017.
- Johnson says YGE’s Q2 profitability is unlikely to repeat, as China has imposed a PV demand freeze in H2, while newly established PV capacity already is surpassing demand in 2016.
- The market is overcrowded and recent checks suggest continued decline in already record-low ASPs, which Johnson says likely will spark “renewed investor concern surrounding YGE’s solvency."
Wed, Aug. 24, 11:57 AM
- Solar manufacturers (TAN +0.2%) racing to build bigger and more advanced factories to crank out panels faster and cheaper are about to face a looming glut just as the panels start rolling off the assembly line, according to a Bloomberg report.
- At the same time, demand is slowing in China, the world’s largest market, where the government is reducing subsidies for solar farms commissioned after June 30, which fueled a rush of projects during H1 as developers added as much as 22 GW before the subsidy expired.
- Canadian Solar (CSIQ -2.3%) is building a a 350 MW facility in Brazil, and JinkoSolar (JKS -1.2%) is expanding output from a 450 MW factory that went into operation in Malaysia last year.
- Trina Solar (TSL -0.2%), the world’s largest panel maker, said yesterday that Q3 shipments would fall as much as 6.5% to 1.55-1.65 GW, while it has increased production capacity 7.1% after opening a 500 MW factory in Thailand in March; Yingli Green Energy (YGE -1.7%) said yesterday that it expects shipments to slip as much as 54% in the current quarter.
Tue, Aug. 23, 6:34 AM
Mon, Aug. 22, 5:30 PM
Mon, Aug. 8, 9:24 AM
Tue, Jun. 14, 12:59 PM
- Yingli Green Energy (YGE +8.7%) remains sharply higher after saying it renegotiated interest rates and maturity dates on its credit lines with some of its banks, two months after it defaulted on 1.76B yuan ($267M) in debts.
- In an earnings conference call, CFO Yiyu Wang did not identify the lenders, saying only that they applied to both short-term and long-term facilities; he said the rate reductions are "slight" but that the move would significantly lower the company's financial burden.
- YGE also reported better than expected Q1 earnings; gross margin was 20% vs. 11.8% in Q4 2015 and 14.1% in the year-ago quarter, Q1 PV module shipments totaled 508.1 MW vs. 504.5 MW in Q4, and the company forecasts Q2 PV module shipments of 580-620 MW.
Tue, Jun. 14, 9:19 AM
Tue, Jun. 14, 6:38 AM
- Yingli Green Energy (NYSE:YGE): Q1 EPS of $0.06 beats by $0.12.
- Revenue of $364.6M (-22.2% Y/Y) beats by $10.62M.
- Shares +9.1% PM.
Mon, Jun. 6, 3:00 PM
Mon, Jun. 6, 12:48 PM
Mon, Jun. 6, 8:32 AM
- Yingli Green Energy (NYSE:YGE) +33.1% premarket after saying it expects that its Q1 net income turned positive for the first time since Q3 2011, with an estimated net margin of 2.5%-4.5%.
- YGE says its Q1 PV module shipments likely totaled 500-510 MW, at the high end of its previous guidance of 480-510 MW.
- YGE also estimates that its Q1 overall gross margin was in the 18.5%-20.5% range, a significant Q/Q increase, primarily due to the higher average selling price of its PV modules because of a higher proportion of shipments to Japan, where the selling price generally is higher than in other markets.
Fri, Jun. 3, 2:11 PM
- Solar stocks are lower today alongside Roth Capital's bearish report on the sector: Trina Solar (NYSE:TSL) is off 6%, JA Solar (NASDAQ:JASO) is 6.4% lower, Yingli Green Energy (NYSE:YGE) is down 2.4%, and JinkoSolar Holdings (NYSE:JKS) is down 2.5%.
- “Heading into H2’16, we are cautious on our entire group of upstream manufacturers given the threat of overcapacity in Q3 as demand in China weakens,” says Roth's Philip Shen.
- The firm downgraded Trina Solar to Neutral with concerns about ASP declines, and lowered its price target to $8 from $12 (now implying 6% upside from today's lowered price). Exposure to the U.S. market might give Trina some protection against the Chinese demand threat.
- Meanwhile, a difference in exposure has Roth very concerned about JA Solar -- also downgraded to Neutral with an $8 price target (now 9% upside from today's lower price). There's limited visibility into second-half bookings, and again: “As a Tier 1 manufacturer, we believe the company will be able to sell all the product it produces. The issue will be one of ASPs, in our view."
- JinkoSolar fares better, maintained at Buy but with a lower price target as well (to $30 from $35, implying 41.7% upside). Margins and improving geographic diversification put the firm in better position than peers, Shen says. Demand's still a worry “given the potential for an air pocket due to the FIT cut in China expected at the end of June."
Thu, May 12, 10:11 AM
- After warning yesterday, Yingli Green Energy (YGE -6.7%) says it didn't repay 1.4B yuan in medium-term notes due today, or the 300M yuan that was unpaid from last October's due date.
- The 1.7B yuan comes to about $261M.
- The notes were due for payment from subsidiary Baoding Tianwei Yingli. That unit says it's not aware of any creditors taking immediate action against the company.
- It's still actively discussing a potential extension of repayment dates with noteholders, it says. It's trying to explore possibilities including introducing strategic investors into the process, as well as bringing in new creditors and selling land-use rights to get more funding.
- Now read Canadian Solar Ups Outlook, Yingli Set For Bond Default »
Wed, May 11, 9:48 AM
- Yingli Green Energy (NYSE:YGE) has returned to earth a bit, falling 3.5% as its Q4 earnings featured news that it is talking refinancing with creditors as it likely can't pay 1.7B yuan (about $260M) in debt maturing tomorrow.
- Major subsidiary Tianwei Yingli told holders of 1.4B yuan in 2011 medium-term notes due tomorrow that it proposed to extend the repayment date by 2-3 years. In addition, about 300M yuan of 2010 MTNs due last Oct. 13 were unpaid, and those holders had demanded repayment by tomorrow.
- It's pursuing the sale of land-use rights for more funds; it received 265M yuan for part of last year's Hainan land disposal and expects to get 205M yuan more this year.
- Revenue fell 41% in its Q4 and missed analyst expectations. PV module shipments of 504.5 MW were above previous guidance for 420-440 MW.
- Gross margin was 11.8%. EBITDA in dollar terms came to -$127.8M vs. an expected gain of $80.6M.
- The company's guiding to PV module shipments of 2.6-3.0 GW for the fiscal year, and for gross margin in Q1 of 17-19%.