Sep. 9, 2013, 1:20 PM
- With the Shanghai Composite having risen 3.4% overnight in response to news Chinese exports rose 7.2% Y/Y in August (up from 5.1% in July and easily topping expectations), it's not surprising many volatile Chinese Internet and solar names are adding to their large 2013 gains today.
- AutoNavi (AMAP +18.5%) is easily the biggest Chinese Internet standout. Other winners include YY (YY +8.2%), NQ Mobile (NQ +4.9%) and e-commerce plays Dangdang (DANG +9.5%), LightInTheBox (LITB +3.1%), and Vipshop (VIPS +3.5%).
- Solar standouts include Trina (TSL +4.9%), Daqo (DQ +12.5%), JA Solar (JASO +6.2%), JinkoSolar (JKS +3.9%), Yingli (YGE +3.8%), LDK (LDK +3.2%), and Canadian Solar (CSIQ +2.5%).
- Chinese mobile chipmaker RDA Microelectronics (RDA +10.6%) is also having a very good day.
Sep. 4, 2013, 12:26 PM
- Recapping the solar industry's Q2 performance, JPMorgan says it's pleased with strong Chinese and Japanese demand, bottom-line improvements driven by cost cuts and stabilizing pricing, and a growing focus by solar companies on projects rather than module sales.
- The firm observes Japanese solar deployments are expected to soar to 6.9GW-9.4GW in 2013 from 1.8GW in 2012 (per Sharp), and that China wants to have 35GW of installed capacity by 2015. It also likes the margin improvements many solar firms delivered in Q2 (I, II, III).
- Winners include JA Solar (JASO +13.6%), Yingli (YGE +10.2%), Hanwha SolarOne (HSOL +13.7%), Daqo (DQ +8.7%), LDK Solar (LDK +7.4%), China Sunergy (CSUN +5.3%), Canadian Solar (CSIQ +2.6%), and Trina (TSL +4.3%). Many of these names have already soared from last fall's lows.
Aug. 29, 2013, 8:11 AM
- JA Solar's (JASO) Q2 loss shrank as it shipped more solar panels to newer markets such as Japan.
- Q2 shipments totaled 463.7 MW, +11% Y/Y and +4.7% Q/Q, and above company guidance of 430 MW.
- Asia Pacific region, excluding China, contributed to 34% of shipments vs. 13.6% a year ago.
- Gross margin was 8.1% vs. 6.0% in Q1 and 4.8% in the year-ago quarter.
- Sees Q3 cell and module shipments of 450-470 MW; full-year guidance of 1.7-1.9 GW is unchanged.
- JASO -1.7% premarket.
Aug. 29, 2013, 6:17 AM
Aug. 29, 2013, 12:05 AM
Aug. 28, 2013, 5:30 PM
Aug. 27, 2013, 11:06 AM
- Citing insufficient cash, LDK (LDK -8%) says it will delay a semi-annual debt coupon payment due tomorrow.
- LDK's cash/bank deposit balance fell to $285.4M at the end of Q2 from $342.5M at the end of Q1. Meanwhile, its debt balance was north of $2.65B at the end of Q2.
- Raymond James' Pavel Molchanov: "LDK's balance sheet makes it a 'zombie company.' It only survives due to continued bailouts from local or provincial authorities." The Suntech saga suggests Chinese authorities aren't as quick to embrace solar bailouts as they once were.
- While many Chinese solar names are now reporting fairly healthy gross margins, LDK's remain bleak. Q2 GM was -46.9% vs. -57% in Q1 and -39.1% a year earlier.
- LDK's balance sheet and cash issues are a big reason it has largely missed out on this year's giant solar stock rally. Nonetheless, the company and its peers are heading in the same direction (TAN -4.3%) today. YGE -6.9%. CSIQ -5.8%. SPWR -4.9%. CSUN -4.5%. SCTY -4.3%. TSL -4.2%. SUNE -5.7%. FSLR -3.2%.
- JA Solar (JASO -4.8%) is also among the decliners, even though it has announced a deal to develop 300MW worth of Chinese solar plants.
- LDK's Q2 results: I, II
Aug. 21, 2013, 1:06 PM
- Solar stocks, among the biggest standouts in a year that has been very good to many high-beta tech names, have staged a strong two-day rally in the wake of Trina's (TSL +13.2%) Q2 beat and guidance hike.
- Trina's numbers have sparked three upgrades, the most recent of which came today, courtesy of Cowen.
- Bloomberg notes Trina, SunPower (SPWR +4.3%), and JinkoSolar (JKS +5.6% - just announced a new 23MW supply deal) are all operating at full capacity, and thinking of expanding.
- S&P's Angelo Zino: "I think it’s safe to say that we’ll see a number of tier-one manufacturers add capacity, probably in 2014."
- That would be a positive for equipment suppliers such as AMAT, GTAT, and VECO, who have seen their solar orders plummet as module makers scramble to stabilize crashing prices and margins.
- Other names rising today: CSIQ +9.7%. SOL +6.7%. YGE +6.2%. JASO +4.2%. CSUN +5.4%. ASTI +5.1%. STP +3.8%. LDK +4.1%.
Aug. 14, 2013, 8:08 AM
- JA Solar (JASO) announces a registered direct offering under which the company will sell 3,045,685 shares to an institutional investor for $7.88 per ADS.
- The investor also gets a a series of warrants (four of them in total) to acquire additional shares at various exercise prices over the course of the next two years.
- Gross proceeds for the company could total as much as $96M, not including the Series B warrant which cannot be exercised for a year. (PR)
Aug. 7, 2013, 11:34 AM
- First Solar (FSLR -13.5%) is tanking following its Q2 miss and light 2013 guidance. Shares still +31% YTD and +253% from their June '12 low.
- No downgrades have come in yet. Analysts are largely defending the company, talking up the GE deal and focusing on the impact of project sale timings on Q2 results.
- Solar peers continue to dive (TAN -8.1%) thanks to First Solar and SunEdison's (I, II) results and guidance. SPWR -12.4%. TSL -7.5%. ASTI -7.1%. SCTY -5.5%. CSIQ -7.8%. SOL -9%. JASO -6.8%. LDK -6.5%.
- First Solar's Q2 module production totaled 388.9MW, +5% Q/Q and Y/Y. Its total cost/watt fell $0.02 Q/Q and $0.05 Y/Y to $0.67. 2013 guidance is for a cost of $0.63-$0.66.
- Capacity utilization is at 75%, flat Q/Q and +1200 bps Y/Y. Conversion efficiency +10 bps Q/Q and +40 bps Y/Y to 13%. 2013 lead-line exit guidance is at 14%.
- Expected future module shipments stand at 2.2GW, down from 2.6GW at the end of 2012 (900MW in YTD shipments offsetting 500MW in new bookings). Expected future revenue at $7.6B vs. $8B at end of 2012.
- CC transcript, slides, datasheet
Aug. 6, 2013, 8:37 PM
- Solar stocks, many of which have seen enormous 2013 gains, finished AH trading down moderately after First Solar missed Q2 estimates (the company blamed solar project sale push-outs) and lowered its 2013 guidance.
- SPWR -2.6% AH. SCTY -2%. SUNE -1.2%. LDK -2.6%. CSIQ -2.4%. JKS -2.2%. STP -2.2%. JASO -2.8%. TSL -2.7%. YGE -3.4%. SOL -2.8%.
Aug. 5, 2013, 9:58 AM
- JA Solar (JASO +6.2%) and "related party" Jinglong Group have obtained an RMB550M ($90M) credit facility from the state-owned Bank of Communications of China. JA only says it plans to use the proceeds for "working capital and general corporate purposes."
- JA had $882M in debt on its balance sheet at the end of Q1, and $503M in cash/investments.
Aug. 2, 2013, 5:42 PM
- The agreement, negotiated between EU and Chinese officials, sets a minimum price of €0.56/watt ($0.74/watt) for Chinese solar module imports, and limits imports to 7GW/year. The deal covers 90 Chinese solar module firms possessing a 60% regional share.
- EU trade commissioner Karel De Gucht observes the minimum price matches the price at which South Korean firms are selling panels without engaging in dumping.
- The deal prevents the imposition of anti-dumping tariffs of 37.3%-67.9%; the tariffs were set to go into effect on Aug. 6.
- European solar trade group EU ProSun, which wanted a minimum price of €0.80/watt, considers the deal unacceptable, and has threatened to file suit.
- Chinese solar stocks, which took off on Monday on initial news of a settlement deal, saw some profit-taking today. LDK -6.1%. SOL -5.5%. JASO -5.4%. JKS -5.2%. YGE -2.3%. CSIQ -1.9%. HSOL -3.7%. DQ -7.1%.
Jul. 29, 2013, 9:16 AM
Jul. 29, 2013, 8:33 AM
- 47% duties on Chinese panel exports to Europe don't kick in until annual export limit — set at seven gigawatts— is hit. (previous)
- Settlement sets minimum price lower than EU companies wanted and close to recent average prices for Chinese manufacturers.
- Premarket movers: YGE +9.48%, JASO +7.2%, LDK +7.69%, TSL +6.97%, JKS +8.61%, SOL +10.47%, CSIQ +5.99%, HSOL +10.4%
Jul. 27, 2013, 9:29 AMAfter a series of "arduous" and meticulous" negotiations, the EU and Chinese solar panel makers have settled their long-running trade dispute. Under the terms of the deal, Chinese companies can export up to seven gigawatts each year as long as the price doesn't fall below €0.56/ watt. Exports in excess of the annual limit or sold below the minimum price will be subject to duties averaging 47% beginning in August. It appears the Chinese come out ahead given that, according to FT, the minimum price "is in line with recent averages [but] well below the €0.80" EU companies "deemed reasonable." On watch Monday: YGE, JASO, LDK, TSL, JKS, SOL, CSIQ, among others. | 13 Comments
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