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Tag Archives: Canadian Solar
Canadian Solar latest Business & Financial news from Doug Young, the Expert on Chinese High Tech Market, (former Journalist and Chief editor at Reuters)
Bottom line: Diversification moves away from manufacturing by Canadian Solar and ReneSola could bring more stability to the companies, while panel makers are likely to take a big hit from new US anti-dumping measures.
ReneSola, Canadian Solar in new diversification moves
A trio of solar energy stories are in the headlines that underscore difficulties panel makers are facing due to a recent glut that looks quite typical in this highly cyclical sector. Two of the stories reflect a trend that has panel makers trying to diversify into the less cycle-prone business of solar plant building, with major new developments from Canadian Solar (Nasdaq: CSIQ) and ReneSola (NYSE: SOL). The third has a research house predicting demand for the panels, which are the main component of such plants, could dive by up to half in the US this year, following a major new anti-dumping ruling by Washington.
Again, all of this shows that the world is still swamped with too much solar panel-making capacity and is in sore need of a downsizing. The main obstacle to that is coming from China, where many companies have slipped into the loss column but refuse to slim down due to resistance from local interests intent on staying in the business come hell or high water. It’s a bit unclear who will blink first in this battle to stay in business, though in this kind of war the market usually determines who emerges as victor. Read Full Post…
Bottom line: India is unlikely to levy anti-dumping tariffs on Chinese solar panel makers, despite the likelihood that it will launch an investigation.
India set to launch anti-dumping probe on Chinese panels
The news just seems to be getting worse and worse for China’s embattled solar panel makers. First the group was hit a few years back by anti-dumping tariffs from the US and Europe, and more recently the highly cyclical industry has gone into a downturn that has pushed a growing number of players into the red. As if that wasn’t bad enough, media are reporting that India may be getting set to launch an anti-dumping investigation against the group.
The news has been spooking investors somewhat, but not as much as you might expect. In fact, most of the solar shares have been on a rally for the last month, and have pulled back a little in light of this news from India. Perhaps that’s because some are saying an anti-dumping probe will take at least a few months to complete, and also that it’s far from clear that India will actually rule against the Chinese companies. Read Full Post…
Bottom line: NetEase could abandon a newly announced New York IPO plan for its media arm if it can find a suitable buyer, while a previously announced New York listing plan by ZTO Express could be revived before year-end.
NetEase news unit makes filing for NY IPO
What’s shaping up as a quiet year for Chinese IPOs in New York has just gotten a small boost, with word that online gaming giant NetEase (NYSE: NTES) has made an initial filing to list its respected but financially-challenged news portal business. Meantime, rumors are building for what’s likely to be one of next year’s biggest offerings from Ant Financial, the financial services affiliate of e-commerce giant Alibaba(NYSE: BABA) and owner of the Alipay e-payments service. But in this case, Ant is shooting down the latest buzz that specific plans are in place for a Hong Kong IPO next year. Read Full Post…
The following press releases and news reports about China companies were carried on July 12. To view a full article or story, click on the link next to the headline.
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Baidu (Nasdaq: BIDU), Alibaba (NYSE: BABA) Face Profit Hit From New Search Ad Rules (English article)
AirAsia Eyes HK Kisting as It Expands in North Asia (English article)
Google (Nasdaq: GOOG) Opens Experience Center in Shenzhen, China Homecoming Signal? (Chinese article)
China Has Too Many Mediocre Electric Carmakers, Researcher Says (English article)
Canadian Solar (Nasdaq: CSIQ) Secures 6.2 Bln Yen Green Solar Financing in Japan (PRNewswire)
The following press releases and news reports about China companies were carried on July 7. To view a full article or story, click on the link next to the headline.
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Apple (Nasdaq: AAPL) Drops to Fifth in China’s Mobile Market as Locals Rise (English article)
Huawei Files US Patent Lawsuit Against T-Mobile (Nasdaq: TMUS) (Chinese article)
SAIC, Alibaba (NYSE: BABA) to Mark Chinese Foray Into Connected Cars With SUV (English article)
Canadian Solar (Nasdaq: CSIQ) Sells Solar Power Projects in China (PRNewswire)
China Resources Beer (HKEx: 291) Plans $1.2 Bln Rights Issue to Buy SABMiller’s JV Stake (English article)
Bottom line: Canadian Solar’s raised revenue guidance hints at rising prices and could signal upside for the company’s profits, while YIngli’s latest signals may show it’s trying to sell itself to a healthier rival.
Canadian Solar surges, YIngli struggles
The strongest and weakest players from China’s lively solar panel sector are in the headlines today, with superstar Canadian Solar (Nasdaq: CSIQ) and the struggling YIngli (NYSE: YGE) both releasing their latest quarterly results. But whereas Canadian Solar has just announced its financials for this year’s first quarter, including a raised revenue outlook for 2016, Yingli is just now releasing its results for the fourth quarter of 2015.
Most companies typically release their quarterly results within 60 days of the quarter’s end, or 90 days at the very latest. But YIngli’s ongoing struggles have led managers to say several times the company could become insolvent, as it sits on a massive pile of maturing debt that it can’t repay. The latest of that debt comes due today, and Yingli is saying it’s unlikely to make the repayment on time. Read Full Post…
The following press releases and news reports about China companies were carried on May 12. To view a full article or story, click on the link next to the headline.
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PPTV Posts Farewell Microblog Message, Website Remains Active (Chinese article)
Canadian Solar (Nasdaq: CSIQ) Reports Q1 Results, Raises Annual Revenue Guidance (PRNewswire)
Wanda Group Reconsiders De-Listing Property Unit: Sources (English article)
LeEco (Shenzhen: 300104) Joins Forces with Twitter for Global Brand Expansion (Businesswire)
The following press releases and news reports about China companies were carried on March 12-14. To view a full article or story, click on the link next to the headline.
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Huawei Enterprise Unit Achieves Profitability in 2015 (Chinese article)
Canadian Solar (Nasdaq: CSIQ) Reports Q4 and Full Year Results (PRNewswire)
Alibaba’s (NYSE: BABA) Cainiao Logistics Arm Targets Colleges (English article)
Huayi (Shenzhen: 300027), Tencent (HKEx: 700) Prepare Vehicle for Hollywood, Korea Deals (English article)
Ant Financial’s Sesame Credit Starts Beta Testing of Enterprise Credit Service (English article)
Bottom line: Canadian Solar’s Recurrent Energy unit is likely to make its first public filing for a New York IPO in the next 2 weeks and should get a positive reception, while Jumei is likely to quietly de-list from the US in the next 3-4 months.
Recurrent Energy gets big new financing
One of the few Chinese IPOs likely to happen in New York this year is moving closer to the launch gate, with word of major new financing for the power plant-building unit of solar panel maker Canadian Solar (Nasdaq: CSIQ). But while that IPO for Recurrent Energy moves closer to the IPO gate, announcement of a new privatization bid for online cosmetics seller Jumei International (NYSE: JMEI) is far more typical for the market these days.
This pair of stories reflect a growing new reality for US-listed Chinese companies. That reality is seeing some of China’s leading private companies choose New York for their listings, banking on interest from global investors seeking to buy into the China growth story. At the same time, many smaller lesser-known Chinese companies listed in New York have discovered US investors are far less interested in their stories, and are privatizing with plans to re-list and hopefully get higher valuations back in China. Read Full Post…
Bottom line: Yingli’s new bank loan will be followed by a major restructuring that will force big losses on bond and shareholders, while a new asset-backed bond program to help the broader panel sector raise money will meet with tepid reception.
Beijing throws new lifelines to Yingli, solar sector
China is throwing a couple of lifelines to its struggling solar panel sector, including a relatively large rescue package for Yingli (NYSE: YGE), the player in the most precarious position. That package will see a consortium of banks, led by the policy-driven China Development Bank, provide Yingli with 2 billion yuan ($300 million) in funds as the company tries to reorganize its financially strapped balance sheet.
Word of the rescue package comes as media are reporting separately that China is preparing a much bigger lifeline for the sector, by allowing solar panel makers to sell bonds backed by the growing number of solar farms they are self-developing. Such farms provide a steady source of income from the power they generate, and thus should theoretically be more attractive to investors than directly investing in the financially-challenged solar panel makers themselves. Read Full Post…
Bottom line: The large premium being offered in Trina Solar’s new buyout reflects a recent flood of private equity chasing privatization deals for US-listed Chinese firms, and could breathe new life into many previously announced bids that have become dormant.
Trina gets rich buyout offer
The homeward migration by US-listed Chinese firms has taken a turn into the new energy sector, with solar panel maker Trina (NYSE: TSL) becoming the first major player in the space to announce a management-led buyout offer. Throughout the current round of buyouts that has seen some 3 dozen US-listed Chinese companies announce privatization bids this year, few have come in the new energy sector that includes about a half dozen of China’s top solar panel makers listed in New York.
That’s not to say that New York has been a comfortable place for these companies. Most of the big names saw their shares soar in their first few years in New York, only to watch them tumble between 2011 and 2013 as panel prices plunged due to massive oversupply. That downturn saw the departure of 2 of the sector’s biggest names from Wall Street, though the exit of Suntech and LDK was prompted by bankruptcy rather than privatization. Read Full Post…
