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A look into 2011 for Renesola

|Includes: ReneSola Ltd. (SOL)

With recent announcement at Q2 2010 Conference Call and news about 2 new contracts signed with 2 Taiwanese Companies, Renesola is poised to grow rapidly.
The stock is trading at PE of 3 on 2011 earnings outlook.
Renesola will increase production of Wafer business to 1.8GW and 600MW of modules. Cell manufacturing will stay at 240MW till further notice from Renesola.
Based on sold out condition for 2011 as mentioned on Q2 Conference Call and given ASP forecast from Renesola ,we can predict the following earnings forecast:

Revenue: 1600MW- 1.484 $ Billion
Wafer :     1200MW @ 0.72$ ASP = 864$Mio
Module:      600MW @ 1.55$ ASP = 620$Mio

Cost of Revenue:
Wafer :1200MW @ 0.49$ = 588$ Mio
Module: 240MW @ 1.04$ = 249.6$ Mio  in house cell manufacturing
Module: 160MW @ 1.34$ = 214.4$ Mio  cell purchase from outside sources
Total cost : 1.052$ Billion

Gross Profit: 432$ Mio
Opex:           100$ Mio
Interest:         24$ Mio
Gross Profit before Taxes:  308$ Mio
Taxes: 18% =  55.44$ Mio
Net profit :  252.56$ Mio
ADS shares outstanding: 86.34Mio

Earnings per ADS shares:  2.92$
PE of 2.72

Based on a stock price of 7.9$ as of 20.August 2010

Average selling prices (NYSE:ASP) and cost of revenue are assumptions based on Q2 conference Call from Renesola.

Disclosure: Dislosure : Long SOL,LDK