Hanwha -13% premarket following Q3 report; margins remain low

|About: Hanwha Q CELLS Co., Ltd. (HQCL)|By:, SA News Editor

While many Chinese solar names have seen their gross margins rebound to double-digit levels, Hanwha (HSOL) had a Q3 GM of just 5.1%. That's down from a Q2 level of 5.5%, albeit up from the year-ago period's -5.8%.

Also: Hanwha's cash balance fell to $171.5M from $231.1M at the end of Q2. Debt totaled $791M vs. $791.7M at the end of Q2. Short-term debt amounted to $206.9M.

Module shipments fell 1.1% Q/Q to 317.8MW (in-line with guidance of 300-325MW). Hanwha expects Q4 shipments of 360-380MW, and is reiterating guidance for full-year shipments of 1.2-1.4GW.

Japan accounted for 46% of module shipments, up from 34% in Q2. The U.S. and China respectively made up 12% and 11%, up from a prior 7% and 4%. South Africa's shipment share was halved to 10%.

Module ASP rose to RMB4.16/watt ($0.68/watt) from RMB4.03/watt in Q2, but was down from RMB 4.22/watt in the year-ago period. Q4 ASPs are expected to be "stable to up."

Q3 results, PR