North Coast Solar Stocks

May 28, 2009

China Sunergy downgraded

Filed under: CSUN — Tags: , , , , — Jason @ 8:03 am

Analyst downgrades China Sunergy to ‘Hold’ on market position, pricing pressure

Thursday May 28, 2009, 8:03 am EDT

NEW YORK (AP) — China Sunergy Co. Ltd.’s (CSUN) lack of vertical integration will constrain the solar cell maker’s margins, said an analyst as he downgraded the company’s stock on Thursday.

Jefferies & Co. analyst Paul Clegg said that despite the company’s strong cell technology and stable liquidity position, he believes that its strategic position in only one segment of the value chain could hamper its growth in an increasingly competitive environment.

“We believe that the ability to directly appraise end-market demand opportunities and to nimbly shift product between different market channels will become an increasingly important differentiator of successful business models,” Clegg said. He noted that China Sunergy’s first-quarter average selling prices were weaker than its peers’, likely because of the company’s lack of direct access to end markets, forcing more severe price reductions to move its product.

The China-based company on Wednesday reported a loss of $15.9 million, or 40 cents per share, for the period ended March 31. Excluding share-based compensation and a change in fair value of foreign currency derivatives, the company’s first-quarter adjusted net loss came to $13.2 million, or 33 cents per share.

In a survey by Thomson Reuters, analysts predicted a loss of 26 cents per share. Analysts typically exclude nonrecurring items from their estimates.

Clegg said he expects ongoing price pressure, so he lowered his full-year estimate to a loss of 40 cents per share, compared with a previous forecast for a loss of 18 cents per share.

Clegg downgraded China Sunergy’s stock to “Hold” from “Buy” with a price target of $4. Shares of the company closed at $3.99 on Wednesday.

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May 27, 2009

China Sunergy posts wider-than-expected Q1 loss

Filed under: CSIQ, CSUN, LDK, SOLF — Tags: , , , , , — Jason @ 10:29 am

Wed May 27, 2009 10:29am EDT

* Total sales fell 52 pct to $37 mln

* Reiterates full-year shipments outlook

* Sees lower average selling prices in Q2

* Shares fall as much as 8 percent

May 27 (Reuters) – Chinese solar cell products maker China Sunergy Co Ltd (CSUN) posted a wider-than-expected quarterly loss, hurt by a fall in average selling prices and high-cost inventory, sending its shares down as much as 8 percent.

In a conference call with analysts, Chief Executive Allen Wang said he expects second-quarter average selling prices (ASPs) to be 15 percent to 20 percent lower than the first quarter.

“Our existing inventory of high-cost wafers prevented us from taking full advantage of reduced upstream costs while our ASPs fell, leading to severe gross margin pressure and a net loss for the quarter,” Wang said in a statement.

However, Wang said in the call the company has consumed the entire high-cost inventory so far in the second quarter.

The company has begun to purchase lower-cost polysilicon wafers at spot market prices, which would bring down the inventory cost in the coming quarters, the CEO added.

Polysilicon is a key raw material for the company which makes photovoltaic solar products that turn sunlight into electricity.

China Sunergy, along with Solarfun Power Holdings Co Ltd (SOLF), Canadian Solar Inc (CSIQ) and LDK Solar Co Ltd (LDK) got squeezed by a drop in inventory value in the fourth quarter, forcing these companies to take write-downs.

The company reported a negative gross margin of 23.7 percent for the first quarter.

However, Wang expects the company to generate positive gross margins in the second quarter.

The company also backed its full-year shipments outlook of 150 megawatts to 200 megawatts.

Shares of the company were flat at $3.87 in morning trade Wednesday on Nasdaq. They touched a low of $3.56 earlier in the session.

QUARTERLY RESULTS

For the first quarter, the company posted a loss of $15.9 million, or 40 cents per American Depository Share (ADS), compared with a profit of $545,000, or 1 cent per ADS, a year ago.

Excluding items, the company posted a loss of 33 cents per ADS. Total sales fell 52 percent to $37.0 million.

Analysts on average were expecting a loss of 26 cents a share, excluding items, on revenue of $37.5 million, according to Reuters Estimates.

Blended average selling price (ASP) fell about 50 percent to $1.64 per watt. Quarterly shipments were about 23.9 megawatt, compared with 24 megawatt, in the year-ago period.

(Reporting by Sakthi Prasad in Bangalore; Editing by Ratul Ray Chaudhuri)

China Sunergy Announces Financial Results for the First Quarter of 2009

Filed under: CSUN — Tags: , , , , , — Jason @ 6:15 am

Wednesday May 27, 2009, 6:15 am EDT

NANJING, China, May 27 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), (“China Sunergy” or the “Company”) a specialized solar cell manufacturer based in Nanjing, China, announced today its financial results for the first quarter of 2009.

First Quarter Financial Results
— Revenues were US$37.0 million, a 14.4% decrease compared to the fourth quarter of 2008. Revenues generated from solar cell sales were US$34.4 million, representing a 15.1% decrease compared to the fourth quarter of 2008.
— Gross loss was US$8.8 million compared to gross loss of US$14.3 million during the fourth quarter of 2008. Accordingly, gross margin was negative 23.7%, compared to negative 33.1% during the fourth quarter of 2008.
— Adjusted non-GAAP net loss was US$13.2 million, which excludes share-based compensation and a change in the fair value of foreign currency derivatives. This compares to non-GAAP net loss of US$17.1 million the fourth quarter of 2008. GAAP net loss was US$15.9 million.
— Adjusted non-GAAP net loss per ADS was US$0.33 on both basic and diluted basis, which excludes share-based compensation and a change in the fair value of foreign currency derivatives, compared to a non-GAAP net loss of US$0.43 per ADS in the fourth quarter of 2008. GAAP net loss per ADS was US$0.40 on both basic and diluted basis.
— Inventory was reduced during the quarter to $29.6 million from $59.1 million. The balance of inventory provision was $8.0 million at end of this quarter, a decrease of $5.8 million compared to the balance of $13.8 million at end of last quarter. The decline in inventory will lessen the future impact of the high cost wafer which was purchased in 2008.
— Operating cash flow in the first quarter was positive US$7.9 million.

Please refer to “Reconciliation Tables of GAAP to adjusted Non-GAAP Figures” at the end of this press release.

Operational Highlights
— Shipments in the first quarter amounted to approximately 23.9MW, representing a 69.5% increase sequentially and a very slight 0.4% decrease on a year-over-year basis.
— Shipments of high efficiency cells (defined as any cells with a conversion efficiency rate of over 17%) during the first quarter of 2009 amounted to 8.9MW, or 37.2% of total solar cell shipments, compared with 6.5MW, or 46.1% of total solar cell shipments, during the fourth quarter of 2008. Although high-efficiency cell sales fell as a percentage of overall sales, among mono-crystalline customers the shipment of high-efficiency cells increased from 55.6% to 58.2%.
— The Company entered into several important sales and framework agreements, expanding its diverse client base to include asola Advanced and Automotive Solar System GmbH, and Solarwatt AG in Germany, Ajit Solar Pvt Ltd. in India and Solarmax Technology Inc. in the United States. While Europe will remain a key market for China Sunergy, with its European headquarters in Germany and an enhanced sales force, the Company is aggressively entering new markets to benefit from developing interest in solar power solutions.
— Recently, the Company submitted a rooftop solar project application for China’s national rooftop solar subsidy, and signed multiple sales agreements with Chinese partners who have submitted rooftop solar project applications. The total volume of these applications is approximately 17.6MW.

Commenting on the results, Dr. Allen Wang, CEO of China Sunergy, remarked:

“As anticipated, the first quarter was another challenging period for China Sunergy given the impact of the economic climate in which we are operating. Although we reported a 69.5% sequential quarterly increase in solar product shipments to a more diverse set of customers, our existing inventory of high-cost wafers prevented us from taking full advantage of reduced upstream costs while our ASPs fell, leading to severe gross margin pressure and a net loss for the quarter.”

(more…)

May 19, 2009

Solarfun posts narrower-than-expected loss; CEO quits

Filed under: CSIQ, CSUN, LDK, SOLF — Tags: , , , , , — Jason @ 12:58 pm

Tue May 19, 2009 12:58pm EDT

* Q1 loss narrower-than-expected, rev in line

* Says CEO Harold Hosken resigned

* Sees ASPs to decline in Q2

* Shares up 13 pct

BANGALORE, May 19 (Reuters) – Photovoltaic cell maker Solarfun Power Holdings Co Ltd (SOLF) posted a narrower-than-expected quarterly loss as raw material prices fell, sending its shares up as much as 13 percent.

“The main driver behind the results was the company’s ability to get raw material prices down,” Simmons & Co analyst Burt Chao told Reuters.

The analyst said Solarfun was benefiting from a drop in prices as it did not have a secure polysilicon position, unlike companies with fixed contracts.

The company cut raw material costs in the first quarter by nearly 25 percent sequentially as it took advantage of its greater flexibility and access to lower-cost raw materials on the spot market.

The company said for 2009, price levels for more than 70 percent of its polysilicon and wafer requirements will be determined based on prevailing market conditions. Polysilicon prices on the spot market are currently below $70 per kilogram, it added.

In the fourth quarter, Solarfun, along with China Sunergy Co Ltd (CSUN), Canadian Solar Inc (CSIQ) and LDK Solar Co Ltd (LDK) got squeezed by a drop in inventory value, forcing these companies to take write-downs.

The company also said it expects shipment volumes to improve sequentially in the second quarter and gross margins to show some gradual improvement as supply costs decline faster than average selling prices.

(more…)

May 5, 2009

China solar set to be 5 times 2020 target-researcher

Filed under: CSUN, LDK, SOL, SOLF, STP, TSL, YGE — Tags: , , , — Jason @ 12:31 am

Tue May 5, 2009 12:31am EDT

By Rujun Shen and Jacqueline Wong

SHANGHAI, May 5 (Reuters) – China is set to smash its target for a roll-out of solar power by 2020 more than fivefold and possibly even tenfold, a researcher with the National Development and Reform Commission, the economic planning ministry, said on Tuesday.

Under the NDRC’s renewable energy plan set out in 2007, China would have 1,800 megawatts of installed solar capacity by 2020.

But Wang Zhongying, assistant director at the NDRC’s Energy Research Institute and head of its Renewable Energy Development Centre, said the country was likely to far exceed that.

“The goal that we made originally is probably too low,” he said at a solar energy conference in Shanghai. “By 2020, we can reach 10,000 MW or more.”

He cited an international aspiration for countries to get 1 percent of electricity from solar by 2020, which would mean a target of 40,000 MW for China, which he said was too high.

“China could reach 10,000 MW or higher, maybe 20,000 MW.”

He stressed that the forecast was his own opinion and not an official target.

At the end of 2008, solar power capacity attached to the grid was less than 100 MW, or 0.01 percent of China’s entire installed capacity.

China is massively dependent on coal, used to generate around 80 percent of its power, but hopes to lessen coal’s dominance by using more hydro, wind, nuclear and biomass.

The government is expected to unveil an economic stimulus package for renewable energy within the next few months.

Shi Dinghuan, president of the Chinese Renewable Energy Society, said the 2020 goal for solar would be revised under the new stimulus plan to more than double the 2007 plan.

Even with a tenfold increase in its 2020 target, solar would play a much smaller part in China’s overall power mix than those other energy sources. Under the original plan, biomass and wind were set to reach 30,000 MW by 2020, with nuclear at 40,000 MW.

China has already more than tripled the 2020 target for wind to 100,000 MW and is expected to easily surpass its nuclear target.

The revised target for wind could be 100-150 GW, Xinhua news agency quoted sources close to the plan as saying on Tuesday.

Firms with exposure to China’s solar sector include Suntech Power (STP), Trina Solar (TSL), ReneSola (SOL), China Sunergy (CSUN), LDK Solar (LDK), Yingli Green Energy (YGE), and Solarfun (SOLF).

March 25, 2009

Solarfun posts Q4 loss as prices drop; CFO resigns

Filed under: CSIQ, CSUN, LDK, SOLF — Tags: , , , , — Jason @ 12:15 pm

Wed Mar 25, 2009 12:15pm EDT

* Prices fall sequentially

* Sees 10-15 pct price decline towards year-end

* Sees sequentially lower demand

* CFO resigns; appoints interim CFO

* Shares fall 10 pct

March 25 (Reuters) – Photovoltaic-cell maker Solarfun Power Holdings Co Ltd (SOLF) posted a fourth-quarter loss as prices for its products fell sharply, and warned of further declines in prices and demand, sending its shares down 10 percent.

The company also named Terry McCarthy interim chief financial officer, replacing Amy Liu, who resigned effective March 31.

Solarfun expects photovoltaic module shipments to hit a bottom in the first quarter, falling sequentially to around 35 megawatts (MW), but sees markets rebounding later this year.

The company has signed contracts with key customers totaling 200 MW and expects full-year demand to exceed that.

However, S&P Equity Research analyst Angelo Zino said the company’s shipment outlook for second half may be too “optimistic.”

The company expects prices to decline by a further 10 percent to 15 percent towards year-end, while Zino sees selling prices falling more than 35 percent in 2009.

Sunsetting solar subsidies in Germany and Spain and a strengthening U.S. dollar against the euro have sent prices of solar products tumbling.

(more…)

China Sunergy Signs 35MW Sales Framework Agreement and 5MW Sales Contract to Supply the Korean Market

Filed under: CSUN — Tags: , , — Jason @ 8:00 am

Wednesday March 25, 2009, 8:00 am EDT

NANJING, China, March 25 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), a specialized solar cell manufacturer based in Nanjing, China, today announced that it has entered into a 35MW solar photovoltaic products framework agreement, and a 5MW solar photovoltaic products sales contract under the 35MW solar photovoltaic products framework agreement, with Global Service LTM. L.L.C. (“GSL”) in Taiwan.

The framework agreement outlines the potential supply of up to 35MW of solar photovoltaic products from China Sunergy to GSL from March through until December 2009. GSL will then supply the solar photovoltaic products to the customer in Korea.

With respect to the specific delivery during the term of the framework agreement, sales contracts will be negotiated and entered into between the parties to finalize the products to be delivered, and the quantity and price of the products. The first 5MW sales agreement has been signed, with China Sunergy to provide 5MW of solar photovoltaic products to GSL in the second quarter of 2009, for eventual shipment to Korea.

The CEO of China Sunergy, Dr. Allen Ruennsheng Wang, remarked: “Signing this framework agreement represents progress in China Sunergy’s recently discussed strategy of geographically diversifying our customer base. Although this framework agreement is not binding, we are pleased to have signed the first 5MW sales contract according to the mutual understanding outlined in the framework agreement, an indication of the solid foundations we have set for an ongoing partnership. We seek to continue this momentum through the securing of additional sales agreements for our solar products within key Asian markets including Korea.”

March 19, 2009

China Sunergy Looks On The Bright Side

Filed under: CSUN, FSLR, JASO, SPWR, STP — Tags: , , , , — Jason @ 2:06 pm

Ruthie Ackerman, 03.19.09, 02:06 PM EDT

Solar cell maker reports a wider-than-expected loss in Q4 but sees hope in the second half.

China Sunergy is feeling the heat as the recession cuts into demand for solar energy.

On Thursday, China Sunergy (CSUN) reported a wider-than-expected loss in the fourth quarter as customers postpone and cancel orders despite the solar cell maker slashing the price of its products.

Still, the company said it forecasts margins to be positive in the second quarter and in the range of 15.0% to 20.0% for the second half of the year.

China Sunergy shares shot up 1.8%, or 3 cents, to $1.72, in afternoon trading. Its shares have plummeted 56.7% since the beginning of the year.

“China Sunergy has faced the same unprecedented and volatile environment as many of our peers across the solar sector, as a result of the ongoing global financial crisis,” said Chief Executive Dr. Allen Wang. “In the past months, we have experienced cancellation or postponement of orders, even as we reduced the selling price of our products significantly in response to market conditions.”

A bright spot is that the company shipped 45.0% more solar cells in 2008 than in 2007 and remained cash flow positive — although shipments for the quarter slid about 39.0%, to 14.1 megawatts. The company currently expects shipments of between 150 megawatts to 200 megawatts for 2009.

Wang said he expects conditions “to remain difficult in the coming quarter.”

(more…)

China Sunergy posts loss; sees positive margins in Q2

Filed under: CSIQ, CSUN, LDK — Tags: , , , , — Jason @ 11:26 am

Thu Mar 19, 2009 11:26am EDT

* Q4 loss wider-than-expected, rev drops 40 pct

* Sees negative gross margin in Q1, positive margins in Q2

* Sees gross margins of 15-20 pct in 2nd half of ’09

* Sees shipments of 150MW to 200MW for ’09

* Shares rise 11 percent

By Adveith Nair

BANGALORE, March 19 (Reuters) – China Sunergy Co Ltd (CSUN) posted a wider-than-expected quarterly loss, as it found few takers for its solar cells in a market hit by oversupply and a credit crunch.

On a conference call with analysts, the company, however, said it expects margins to be “definitively” positive in the second quarter and sees it in the range of 15 percent to 20 percent for the second half of the year.

Shares of the company jumped 11 percent to $1.88 Thursday morning on Nasdaq.

“I think expectations were pretty low,” Jefferies’ analyst Paul Clegg told Reuters. “There have been so many negative results this quarter, I don’t think investors are going to be deeply disappointed relative to expectation.”

For the first quarter, the solar cell maker warned that the difficult conditions would likely continue, hurting prices and demand more than previously expected.

A pullback in solar subsidies in Germany and Spain and a strengthening U.S. dollar against the euro has sent prices of solar products tumbling.

(more…)

China Sunergy Announces Financial Results for the Fourth Quarter and Full Year 2008

Filed under: CSUN — Tags: , , , , , — Jason @ 7:15 am

Thursday March 19, 7:15 am ET

Full Year Revenues of US$350.9 million, an Increase of 49.4% from 2007; Annual Shipments of 107.2 MW Represents a Year-over-Year Growth of 44.9%.

NANJING, China, March 19 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), (“China Sunergy” or the “Company”) a specialized solar cell manufacturer based in Nanjing, China, announced today its financial results for the fourth quarter and full year 2008.

Full Year Financial Results

— Revenues increased 49.4% to US$350.9 million from US$234.9 million in 2007.
— Gross profit for 2008 was US$15.5 million, a decline from US$18.0 million in 2007. Gross margin was 4.4% compared to 7.7% in 2007.
— Adjusted non-GAAP net loss, which excludes share-based compensation and change in fair value of foreign currency derivative loss of US$9.9 million, was US$9.4 million, compared to non-GAAP net loss of US$5.0 million in 2007. GAAP net loss was US$22.5 million as the Company was impacted by the global financial crisis during the second half of 2008.
— Adjusted non-GAAP net loss per ADS, which excludes share-based compensation and change in fair value of foreign currency derivative loss, was US$0.24 both on basic and diluted basis, compared to a non-GAAP net loss of US$0.16 in 2007. GAAP net loss per ADS was US$0.57 both on basic and diluted basis.

Fourth Quarter Financial Results
— Revenues were US$43.2 million, representing a 39.6% and 63.7% decrease compared to the fourth quarter of 2007 and the third quarter of 2008, respectively; revenues generated from solar cell sales were US$40.5 million, representing a 40.2% and 64.3% decrease compared to the fourth quarter of 2007 and the third quarter of 2008, respectively.
— Gross loss was US$14.3 million compared to gross profit US$4.6 million and gross profit US$11.1 million during the fourth quarter of 2007 and the third quarter of 2008, respectively. Gross margin was negative 33.1%, compared to 6.4% and 9.3% during the fourth quarter of 2007 and the third quarter of 2008, respectively. Gross margin excluding inventory provision was negative 8.5%, in line with expectations announced in February.
— Adjusted non-GAAP net loss, which excludes share-based compensation and change in fair value of foreign currency derivative loss of US$9.0 million, was US$16.6 million, compared to non-GAAP net loss of US$2.1 million and non-GAAP net income of US$2.0 million in the fourth quarter of 2007 and the third quarter of 2008, respectively. GAAP net loss was US$26.3 million, including a US$10.6 million inventory provision.
— Adjusted non-GAAP net loss per ADS, which excludes share-based compensation and change in fair value of foreign currency derivative loss, was US$0.42 on both basic and diluted basis, compared to a non-GAAP net loss of US$0.05 and a non-GAAP net income of US$0.05per ADS in the fourth quarter of 2007 and the third quarter of 2008, respectively. GAAP net loss per ADS was US$0.66 on both basic and diluted basis.
— Operating cash flow in the fourth quarter was positive US$1.7 million.
— During the fourth quarter of 2008, China Sunergy conducted open market repurchases of its 4.75% Convertible Senior Notes due 2013. Through December 31, 2008, China Sunergy repurchased US$6.5 million aggregate principal amount of the convertible notes for a total cash consideration of US$2.0 million. As a result, China Sunergy realized a net gain of US$4.5 million

* Please refer to “Reconciliation Tables of GAAP to adjusted Non-GAAP Figures” at the end of this press release.

Commenting on the results, Dr. Allen Wang, CEO of China Sunergy, said:

“China Sunergy has faced the same unprecedented and volatile environment as many of our peers across the solar sector, as a result of the ongoing global financial crisis. The severe pressure we initially experienced in September have persisted, as reflected by our lower than anticipated financial results including our negative gross margin and a higher than expected net loss. In the past months, we have experienced cancellation or postponement of orders, even as we reduced the selling price of our products significantly in response to market conditions. Although our recent financial results have been drastically impacted, we shipped 45 percent more solar cells in 2008 than in 2007 and remained cash flow positive at an operational level. We expect conditions to remain difficult in the coming quarter, however we retain our belief and confidence that our advanced solar cell offerings, coupled with our R&D, engineering and manufacturing capabilities will ensure the Company fulfills its long-term potential.”

(more…)

March 18, 2009

China Sunergy Signs Letter of Intent With SolarMax, a Leading U.S.-Based Photovoltaic Systems Integrator

Filed under: CSUN — Tags: , , — Jason @ 8:00 am

Wednesday March 18, 8:00 am ET

NANJING, China, March 18 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), a specialized solar cell manufacturer based in Nanjing, China, today announced that it has signed a letter of intent with SolarMax Technology Inc. (SolarMax), one of the leading system integrators of photovoltaic systems in the United States.

In entering the letter of intent, China Sunergy seeks the enhancement of mutual competitive advantages of both parties. According to the letter of intent, China Sunergy will supply 25MW of solar cells to SolarMax throughout 2009. The supply schedule and supply volume are subject to change depending on the cooperation performance achieved by both parties.

The letter of intent contemplates further cooperation between the parties in other manners. According to the letter of intent, SolarMax will act as a sales agent and representative of China Sunergy in the U.S., and China Sunergy will receive local support from SolarMax. The parties will also work together on all projects, with each party participating at a varying level for different projects.

The consummation of the cooperation under the letter of intent is subject to the execution of definitive agreements and other conditions mutually accepted by the parties.

Upon signing the letter of intent, Dr. Ruennsheng Allen Wang, Director and CEO of China Sunergy, remarked: “We are making steady progress regarding our strategy of customer base diversification as demonstrated by entering this mutual understanding with SolarMax. This cooperation offers competitive advantages to both China Sunergy and SolarMax, and we hope to mutually benefit from our partnership. We are confident that we will continue to enter into international markets in Europe and the United States through the sales of our advanced solar cell products.”

March 17, 2009

China Sunergy Signs 10 Year Solar Cell Sales Framework Agreement With asola

Filed under: CSUN — Tags: , , — Jason @ 9:52 am

Tuesday March 17, 9:52 am ET

China Sunergy May Provide up to 480MW of Silicon Solar Cells Through 2018

NANJING, China, March 17 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), a specialized solar cell manufacturer based in Nanjing, China, today announced that it has entered into a ten year Sales Framework Agreement with asola Advanced and Automotive Solar Systems GmbH (“asola”), a module producer based in Erfurt, Germany. This non-binding framework agreement outlines the potential delivery of up to 480MW of solar cells manufactured by China Sunergy from 2009 to 2018.

Under the Framework Agreement, which remains valid from 2009 until 2018, China Sunergy may supply asola a total of 30MW of silicon cells in 2009, with 50MW thereafter for each remaining year of the 10-year agreement. Specific terms and conditions of the supply will be set forth in definitive sales agreements to be further negotiated between China Sunergy and asola. Although the framework agreement is not binding, as each sales agreement will be separately negotiated, this agreement effectively helps to strengthen the relationship between these two companies and facilitates the signing of future sales agreements.

Commenting on the agreement, Dr. Ruennsheng Allen Wang, Director and CEO of China Sunergy, said: “The signing of this long-term framework agreement with asola further builds upon our relationship with an important customer. We look forward to working with asola during the course of this agreement to secure ongoing sales agreements, as we work to diversify our sales revenue across key geographies including Germany.”

Reinhard Wecker, CEO of asola, noted, “China Sunergy has been a valuable partner in the past, and we believe that over the next decade the high quality solar cell products from China Sunergy will continue to be of strategic benefit as we further develop our advanced solar modules.”

March 2, 2009

China Sunergy Announces Solar Cell Sales Agreement with asola

Filed under: CSUN — Tags: , , — Jason @ 8:15 am

Monday March 2, 8:15 am ET

NANJING, China, March 2 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), a specialized solar cell manufacturer based in Nanjing, China, today announced that it has entered into a solar cell sales agreement with asola Advanced and Automotive Solar System GmbH (“asola”), a German solar module manufacturing company. Under the terms of the contract, China Sunergy will supply a total volume of between 10MW and 30MW of solar cells to asola from February to December of 2009.

Pricing and quantity are fixed for the first half of 2009, while the transaction details for the second half are subject to further negotiations.

“We are delighted to be signing another solar cell sales agreement with asola, and believe that this relationship will only strengthen in the coming years,” remarked Dr. Ruennsheng Allen Wang, Director and CEO of China Sunergy. “We will continue to actively build strategic partnerships with our existing customers, while pursuing new sales opportunities for our advanced solar cell products.”

Reinahrd Wecker, CEO of asola, added, “We are pleased to continue our relationship with China Sunergy as we expand our business into important solar markets, including Italy and the U.S.”

February 26, 2009

Akeena Solar quarterly loss widens; shares slump

Filed under: AKNS, CSUN, FSLR — Tags: , , , , , — Jason @ 1:51 pm

Thu Feb 26, 2009 1:51pm EST
By Adveith Nair

* Q4 loss widens

* Falling prices hurt margins

* Sees slow Q1

* Sees 10-20 pct rev growth in ’09 * Shares sink 30 pct to life-time low

BANGALORE, Feb 26 (Reuters) – Akeena Solar Inc (AKNS) posted a wider-than-expected quarterly loss, hurt by lower prices for its solar panels, and as commercial installations fell, and the solar power systems maker forecast a seasonally slow first quarter, slamming its shares down 30 percent to a life-time low.

Shares of the company fell below $1 to a low of 94 cents Thursday morning on Nasdaq. They were down 19 percent at $1.08 in afternoon trade. Excluding today’s fall, the stock is down 85 percent from its 52-week high of $8.90.

For the latest fourth quarter, the company posted a loss of 32 cents a share, wider than both the 18 cents share loss it reported a year earlier, and analysts average consensus view of a loss of 17 cents a share.

Gross profit for the fourth quarter 2008 was 10.7 percent of sales, compared with 18.2 percent of sales, last year.

Margins were hurt by higher subcontractor labor costs on its less profitable commercial projects and a sharp decline in worldwide panel prices.

A pullback in government solar subsidies in Germany and Spain, and a strengthening U.S. dollar against the euro has caused prices on solar panels to fall faster than expected, crimping profit margins for many manufacturers.

Earlier in the day, Solar-cell maker China Sunergy Co Ltd (CSUN) said it expects gross profit margin to be in negative high single-digits for 2008, hurt by further declines in average selling prices.

However, Kaufman Brothers analyst Theodore O’Neill said he does not see prices coming down any further.

(more…)

China Sunergy sees negative gross margin for FY08

Filed under: CSUN — Tags: , , , — Jason @ 9:30 am

Thu Feb 26, 2009 9:30am EST

* Sees margins to be in negative high single-digits

* Sees derivative losses in Q4

Feb 26 (Reuters) – Solar-cell maker China Sunergy Co Ltd (CSUN) said it expects gross profit margin to be in negative high single-digits for 2008, hurt by further declines in average selling prices.

“Due to the rapid decline of average selling prices and raw material prices, the company estimates an increase in inventory provision of about $10 million,” it added.

The company also said its fourth-quarter solar cell production was at the top of the outlook range of 15 to 20 mega watt.

China Sunergy also expects currency exchange and derivative losses in the fourth quarter due to Euro depreciation and fair market value change of embedded derivatives. It said, however, that its cash flow is expected to remain positive on an operational level.

A stronger U.S. dollar and decline in government incentives for solar power in top markets like Germany and Spain have driven prices on solar panels down, hampering solar manufacturers’ profitability.

Shares of China Sunergy closed at $1.78 Wednesday on Nasdaq.

China Sunergy Provides Update on Selected Estimated Financial Results for the 2008 Fourth Quarter

Filed under: CSUN — Tags: , , — Jason @ 8:00 am

Thursday February 26, 8:00 am ET

NANJING, China, Feb. 26 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), (”China Sunergy” or the ”Company”), a specialized solar cell manufacturer based in Nanjing, China, today provided an update regarding selected estimated financial results for the fourth quarter ended December 31, 2008.

China Sunergy’s fourth quarter solar cell production was at the top of the guidance range of 15MW-20MW. However, the company’s gross profit margin — excluding inventory write down — is expected to be in the negative high single digits, mainly caused by the further decrease in Average Selling Price (”ASP”) during December 2008. In addition, due to the rapid decline of ASP and raw material prices, the Company estimates an increase in inventory provision of approximately $10 million.

China Sunergy also expects to report currency exchange and derivative losses in the fourth quarter primarily due to Euro depreciation and fair market value change of embedded derivatives. As the majority of the losses were not cash related, the Company’s cash flow in the fourth quarter should remain positive at the operational level.

As these selected estimated results are subject to finalization of the Company’s financial closing procedures, the Company’s actual results may differ from its current estimates.

China Sunergy will report full financial results for its fourth quarter and fiscal year ended December 31, 2008 on March 19, 2009 prior to the opening of the U.S. market. The company will then host an earnings conference call at 5:00am (Pacific Time) / 8:00am (Eastern Time) / 8:00pm (Beijing/Hong Kong) on March 19, 2009.

February 24, 2009

China Sunergy Signs Solar Cell Sales Agreement With U.S. Based Manufacturer of Photovoltaic Products

Filed under: CSUN — Tags: , , , , — Jason @ 8:00 am

Tuesday February 24, 8:00 am ET

China Sunergy to Ship 20MW to 25MW of Solar Cells in 2009 to Photovoltaic Firm

NANJING, China, Feb. 24 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), a specialized solar cell manufacturer based in Nanjing, China, today announced that it has entered into a wafer purchase agreement and a solar cell sales agreement with a U.S. based photovoltaic products firm.

Pursuant to the terms of the agreements, China Sunergy will utilize the multi-silicon wafers purchased from the firm to produce multi-silicon solar cells, which will then be sold back to the firm for incorporation into its downstream solar products. Based on the forecast provided by the U.S. based manufacturer, a total of 20MW to 25MW of solar cells will be supplied by China Sunergy throughout 2009.

The agreements may be replaced by an OEM tolling agreement between China Sunergy and the manufacturer, which is expected to come into force in April 2009. The parties expect that the OEM tolling agreement would not alter the basis of the purchasing and sales terms currently outlined in the existing contracts.

Commenting on the news, Dr. Ruennsheng Allen Wang, CEO of China Sunergy, remarked:

”The securing of this year-long agreement with our U.S. partner, especially during a period of instability within the solar sector, demonstrates that China Sunergy is able to execute on our strategy of signing financially profitable, mutually beneficial agreements with a diverse set of customers. We will continue to seek out additional suitable partners for our advanced solar products across a wide spectrum of geographies and industry segments.”

February 10, 2009

Solar: Have We Hit The Bottom In Demand?

Filed under: CSUN, JASO, SOL, STP, TSL, YGE — Tags: , , , , — Jason @ 11:45 am

Posted by Eric Savitz
Barron’s Online

Has solar demand – and the slide in solar shares – finally hit bottom?

The solar analysts at Merrill Lynch think so. In a piece authored by analysts Lu Yeung, Vincent Chow, Matthew Yates and Steve Millunovich, Merrill this morning asserts that “improving second derivative trends” suggest the industry is headed for a cyclical bottom.

The Merrill analysts assert that, while there is not likely to be a recovery in demand until early 2010, Q4 2008 and Q1 2009 “will mark the shipment bottom,” with modest sequential increases in subsequent quarters. “Our research suggests that some Asian vendors may forecast flat-to-rising shipments, suggesting inventory is peaking and depletion is underway, thanks to swift production cut backs, signs of easing in solar project financing and solar ASP declines,” they write.

The Merrill analysts thinks ASP declines will decelerate for the Asian solar sector with modules already priced below $3/watt, versus $3.50/watt for U.S. and European vendors. They contend that the Asian solar sector can maintain margins at around 20% with poly prices at $150/kg or less with module prices at $2.70/watt, or with poly at $100/kg and module prices at $2.40 a watt.

Meanwhile, the Merrill analysts say that demand could shoot up as prices fall and approach grid parity. Their view is that the addessable market is 3x greater with module prices at $3/watt than at $4/watt.

Given that scenario, Merrill has shuffled ratings on some solar stocks:

* Trina Solar (TSL): Upgraded to Buy from Neutral, with $14.30 price target.
* JA Solar (JASO): Upgrades to Neutral from Underperform, with $3.80 price target.
* Motech: Upgraded to Neutral from Underperform, with price target of 99 Taiwan dollars.
* ReneSola (SOL): Downgraded to Neutral from Buy, to $4.53. target.
* Sino-American: Downgraded to Underperform from Buy, with target of 54 Taiwan dollars.

Merrill maintains Buy ratings on Yingli (YGE) and China Sunergy (CSUN), and keeps an Underperform rating on Suntech (STP).

February 9, 2009

Barclays Says Buy Yingli, Sell Solarfun

Filed under: CSUN, LDK, SOL, SOLF, TSL, YGE — Tags: , , , , , — Jason @ 6:03 pm

Posted by Eric Savitz
barrons.com

Barclays Capital analyst Vishal Shah this morning picked up coverage of a half-dozen China-based solar stocks. His general view is that the stocks will be hampered in the near-term by falling Street estimates and excess channel inventory, but that some stocks could outperform as polysilicon supply improves. Here’s a rundown on his new coverage:

* Yingli Green Energy (YGE): Overweight rating, $12 target. “Yingli has [the] industry leading non-silicon cost structure and among the highest exposure to declining spot silicon prices.”
* Solarfun Power (SOLF): Underweight rating, $3.50 target. “Lack of sufficient cash balance, relatively low brand differentiation and downside risk to estimates could lead to share price under-performance.”
* China Sunergy (CSUN): Equal Weight rating, $5 target. “Limited sales visibility in the near term and limited management execution track record could likely limit share price outperformance.”
* ReneSola (SOL): Equal Weight rating, $4 target. “Although low valuations could provide downside support, we expect excess supply in the upstream solar segment to result in downward pressure on margins and ROIC, thereby offsetting any potential upside resulting from robust shipments growth.”
* Trina Solar (TSL): Equal Weight rating, $9 target. “Limited sales visibility, greater capital requirements resulting from vertically integrated business model, weak balance sheet and unhedged FX exposure…could likely limit share price outperformance.”
* LDK Solar (LDK): Equal Weight rating, $12 target. “We expect LDK to dominate the wafer supply market and benefit from scale and lower input costs as poly prices continue to decline,” he writes. “However, relatively high capital needs for poly expansion and risk of project delays are likely to limit outperformance.”

December 23, 2008

China Sunergy Signs Sales Agreement With Ajit Solar

Filed under: CSUN — Tags: , , — Jason @ 8:00 am

Tuesday December 23, 8:00 am ET

Signifying the Company’s first move into the Indian solar market

NANJING, China, Dec. 23 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), a specialized solar cell manufacturer based in Nanjing, China, today announced that it has entered into a one-year agreement with Ajit Solar Pvt Ltd (“Ajit Solar”), a privately-owned module manufacturer based in Jaipur, India.

Under the terms of the agreement, China Sunergy will supply and deliver a total volume of 12MW of multi-crystalline solar cells. It is expected that China Sunergy will deliver 5MW to Ajit Solar in the first half of the year, and the remaining 7MW in the latter half.

Commenting on the agreement, CEO of China Sunergy, Dr. Allen Wang, said: “Our partnership with Ajit Solar marks a significant step for China Sunergy as we venture into the growing Indian solar market. Despite the challenging market conditions, we continue to receive orders for our solar cells. We look forward to working closely with Ajit Solar and to further penetrating the Asian markets.”

Located in Jaipur, India, Ajit Solar is a privately owned company of the Gehlot Group which manufactures world class photovoltaic modules.

December 18, 2008

China Sunergy initiates commercial production of four solar cell manufacturing lines

Filed under: CSUN — Tags: , , — Jason @ 10:00 am

18 December 2008 | By Síle Mc Mahon

China SunergyNanjing-based China Sunergy Co., Ltd. (CSUN) has brought four high-efficiency SE solar cell manufacturing lines into commercial production at a ceremony held to celebrate the commencement of China Sunergy’s 3rd stage production. The door of the 3rd stage production lines was opened to visitors on the day, with attendees including China Sunergy executives Tingxiu Lu, Chairman, Dr. Allen Wang, CEO, and Dr. Jianhua Zhao, CTO.

These additional four lines bring the company’s manufacturing line total to ten, five of which are for high-efficiency SE solar cells, four for HP solar cells, and one line that manufactures common P-type multicrystalline solar cells. The company now has an overall production capacity of close to 320MW.

The company also stated that it “has got enough cash for production and development in this year and next year” in its Q3 quarterly report. More than 50% of the company’s orders for 2009 have at this point been finalised, including the recent deal with Solarwatt AG that will see Sunergy deliver over 22MW of solar cells over the course of next year.

December 10, 2008

China Sunergy Announces Sales Agreement with Solarwatt AG

Filed under: CSUN — Tags: , , — Jason @ 10:22 am

Wednesday December 10, 10:22 am ET

China Sunergy to Provide 22MW of Solar Cells to the German Module Manufacturer

NANJING, China, Dec. 10 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), a specialized solar cell manufacturer based in Nanjing, China, today announced that it has entered into an agreement with Solarwatt AG, a leading manufacturer of solar modules in Germany, to provide 22MW of solar cells over the course of 2009.

According to the signed contract, China Sunergy will supply Solarwatt AG with high efficiency mono-crystalline solar cells at fixed prices, starting in January of 2009 and continuing at a consistent level through out the year, for a total delivery volume of 22MW.

“I am pleased to have signed this agreement with Solarwatt, a leading firm within one of the most dynamic solar markets in the world,” remarked Dr. Ruennsheng Allen Wang, Director and CEO of China Sunergy. “Despite the recent uncertain sales environment, we have been successful in securing important sales agreements with leading companies in key markets, and we remain well positioned to benefit as further clarity returns to the market.”

November 25, 2008

China Sunergy Announces Financial Results for the Third Quarter 2008

Filed under: CSUN — Tags: , , , , — Jason @ 6:30 am

Tuesday November 25, 6:30 am ET

Reports Third Quarter Revenues of US$119.0 million, an Increase of 142.9% Year-Over-Year; Solar Cell Production and Gross Margin are both within Guidance at 35.7.MW and 9.3% respectively

NANJING, China, Nov. 25 /PRNewswire-Asia/ — China Sunergy Co., Ltd. (CSUN), (“China Sunergy” or the “Company”) a specialized solar cell manufacturer based in Nanjing, China, announced today its financial results for the third quarter of 2008.

Third Quarter Financial Results

— Revenues were US$119.0 million, representing a 142.9% and 6.6% increase compared to the third quarter of 2007 and the second quarter of 2008, respectively; revenues generated from solar cell sales were US$113.4 million, representing a 144.9% and 8.6% increase compared to the third quarter of 2007 and the second quarter of 2008, respectively.

— Gross profit was US$11.1 million compared to US$1.0 million and US$11.6 million during the third quarter of 2007 and the second quarter of 2008, respectively. Gross margin was 9.3%, which was within the Company’s guidance range, compared to 2.1% and 10.4% during the third quarter of 2007 and the second quarter of 2008, respectively. Blended gross margin was impacted mainly by the reduced OEM volume, compared to previous quarter.

— GAAP net income was US$0.2 million, compared to net loss of US$4.4 million and net income of US$3.1 million in the third quarter of 2007 and the second quarter of 2008, respectively. Lower GAAP net income was largely due to non-operational accounting measures.

— Non-GAAP net income, which excludes share-based compensation and change in fair value of non-cash derivative loss, was US$2.0 million, compared to non-GAAP net loss of US$4.3 million and non-GAAP net income of US$4.0 million in the third quarter of 2007 and the second quarter of 2008, respectively. The non-GAAP measures are described below and reconciled to the corresponding GAAP measure in the section below titled “Use of Non-GAAP Financial Measures.”

— GAAP net income per ADS was US$0.01 both on basic and diluted basis, compared to a net loss of US$0.11 and a net income of US$0.08 per ADS in the third quarter of 2007 and the second quarter of 2008, respectively.

— Non-GAAP net income per ADS, which excludes share-based compensation and change in fair value of non-cash derivative loss, was US$0.05 both on basic and diluted basis, compared to a non-GAAP net loss of US$0.10 and a non-GAAP net income of US$0.10 per ADS in the third quarter of 2007 and the second quarter of 2008, respectively.

— Operating cash flow in this quarter was positive US$1.8 million.

(more…)

November 24, 2008

China Sunergy Provides Update on Cash Position and Liquidity

Filed under: CSUN — Tags: , — Jason @ 8:00 am

Monday November 24, 8:00 am ET

NANJING, China, Nov. 24 /PRNewswire/ — China Sunergy Co., Ltd. (CSUN), (“China Sunergy” or the “Company”) a specialized solar cell manufacturer based in Nanjing, China, today provided an update on the Company’s cash position and liquidity as of September 30, 2008.

Despite challenging economic conditions, the Company continued to improve in liquidity in the third quarter. As at September 30, 2008, China Sunergy had cash and cash equivalents of US$122.1 million, with positive net operating cash flow. The Company also has access to a US$70M bank credit, untapped as of the end of September, and has seen no items which would interfere with the renewal of existing bank loans. Inventory in the third quarter was at a similar level compared to the second quarter, and the Company’s working capital ratio improved from 178% in the second quarter to 212% in the third quarter.

As scheduled, the Company will report full financial results for its third quarter ended September 30, 2008 on November, 25 2008 prior to US market open, and will host a conference call following the earnings release at 8:00 a.m, Eastern Time or 5:00 a.m. Pacific Time (Beijing / Hong Kong Time: November 25, 2008 at 9:00 p.m.).

October 23, 2008

China Sunergy Signs Silicon Ingot Supply Agreement with Hitachi High-Technologies

Filed under: CSUN — Tags: , , — Jason @ 8:00 am

Thursday October 23, 8:00 am ET

NANJING, China, Oct. 23 /Xinhua-PRNewswire/ — China Sunergy Co., Ltd. (CSUN), a specialized solar cell manufacturer based in Nanjing, China, announced today that it has entered into a multi-year agreement for a supply of high quality 8 inch single crystal silicon ingot with the Japanese Hitachi High-Technologies Corporation and its affiliate (“HHT”). Under the agreement, HHT will supply a total volume of 1,472 tons of silicon ingot from September 2008 through the end of 2011, which will support the production of approximately 210MW of solar cells during the contractual term.

Shipment of silicon ingots began in September 2008 and will continue through the end of 2011. While the pricing has been fixed for the 2008 shipments, China Sunergy and HHT will negotiate the ongoing price of silicon ingot every three months beginning in 2009, within a predetermined pricing range.

“This long-term partnership with a respected supplier such as HHT allows us to reduce our reliance on obtaining silicon material supplies from the volatile spot market,” commented Mr. Allen Wang, Chief Executive Officer of China Sunergy. “In addition to the high quality silicon ingot improving our yields and output, I believe there are cost savings to be recognized from this deal which will contribute to the long term goal of strengthening our gross margin. We will continue to seek additional agreements with partners like HHT, as they will benefit China Sunergy by providing a reliable source of silicon through a flexible, favorable cost structure.”

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