The future prospects of the solar industry are undeniable. Solar has increased at a 40% CAGR for the past 40 years, and is poised to disrupt the energy industry. While the industry as we know it today is still relatively young, many solar companies are already starting to differentiate themselves from the pack. Yingli Green Energy (YGE) is a Chinese solar manufacturing firm on the front lines of the solar boom.
The company has traditionally been one of the world's leading solar firms in terms of manufacturing and shipments, but has recently given that edge to Trina Solar (TSL). While losing its leadership position may seem like bad news, the company is scaling back in order to improve its margins and relatively weak balance sheet. While Yingli's stock has been tanking due to its weak financials, the company's future still looks bright because of its international presence, downstream business, and restructuring of financials.
Strong International Presence
Yingli Solar boasts a remarkably diversified global sales model. The company has thriving markets in Japan, China, the U.S., Europe, etc. Not only is the breadth of Yingli's market reach impressive, but it is also very well-balanced. As of Q3, for instance, the company has market shares of 21% concentrated in Japan, 29% in China, 18% in the U.S, 18% in Europe, and 14% in the ROW (rest of the world). None of these numbers are grossly disproportionate to the respective regions markets, which indicates the company's well-balanced and diverse global model.
Revenues by Geography
Source: Yinglisolar.com.
The company's increasing emphasis on the emerging solar markets stands out in its significance. For 2014, the company expects one-third of its total sales to come from Japan/ROW, and will be continuing to focus on these regions in the years to come. This is important as Japan is set to become
