A couple of items from the struggling solar panel sector are showing how the industry is limping forward, receiving minor rescue loans to continue funding operations while manufacturers await a bigger rescue package from Beijing. I can only guess that the bigger package, which has been talked about for much of the last half year, will finally be rolled out by the middle of this year. That will finally allow the industry to try and put itself on more sustainable long-term footing instead of continuing to limp forward in this current state of malaise.
Tag Archives: Canadian Solar
Foreign Banks Cool to Solar, Beijing Steps In 光伏业融资遇冷 中国政府挑担子
A few of the latest headlines reflect a cooling appetite by foreign banks for funding solar energy related projects, creating a worrisome vacuum that Beijing may need to fill as it seeks to stop struggling sector from sinking further still. Two of the latest such headlines look like particular cause for worry, with Canadian Solar (Nasdaq: CSIQ) taking over financial responsibility for a solar power project from one of its construction partners for unspecified reasons that I suspect are related to waning interest by foreign banks in funding such projects. (company announcement) Another similar recent domestic media report says that a Chinese company that insures solar panel sales has just made its biggest-ever payment to JA Solar (Nasdaq: JASO) after the panel maker couldn’t collect payment from one of its overseas customers. (Chinese article)
Good News Hides Woes at Spreadtrum, LDK 展讯通信和江西赛维释放利好掩盖问题
Cellphone chipmaker Spreadtrum (Nasdaq: SPRD) and solar panel maker LDK (NYSE: LDK) are both using good news as a smokescreen to draw attention away from bigger bad news, with the former announcing a new dividend and the latter a minor victory in a business dispute. In both cases, each company is grappling with much bigger problems that have caused their share prices to sag as investors lose interest in their tarnished growth stories. In LDK’s case the situation is much worse, with the company essentially being supported by the government as it teeters on the brink of insolvency.
Beijing Funds Solar Consolidation 中国政府或继续向光伏行业提供资金支持
A new announcement from solar panel maker Canadian Solar (Nasdaq: CSIQ) indicates that Beijing may be preparing to help fund a much-needed consolidation in the oversupplied sector. The news should be welcome by money-losing Chinese solar companies in general, as it indicates that Beijing will continue to provide them with funds to continue their operations as private sector options evaporate. But the move will inevitably raise new complaints from foreign rivals, who will say this funding is exactly the kind of unfair state support that has led to dumping investigations in both the US and European Union.
News Digest: August 14, 2012 报摘： 2012年8月14日
The following press releases and media reports about Chinese companies were carried on August 14. To view a full article or story, click on the link next to the headline.
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- Focus Media (Nasda: FMCN) Gets Management-Led $3.66 Bln buyout Offer (English article)
- Canadian Solar (Nasdaq: CIQ) Gets C$93 Mln Loan From China Development Bank (PRNewswire)
- Phoenix New Media (NYSE: FENG) Reports Q2 Unaudited Financial Results (PRNewswire)
- Wuxi PharmaTech (NYSE: WX) Announces Q2 Results (PRNewswire)
- Suning (Shenzhen: 002024) In 8 Bln Yuan Bond Offer as Website Consumes Cash (Chinese article)
- Latest calendar for Q2 earnings reports (Earnings calendar)
Solar Trade Wars: Showdown Coming? 中西方太阳能贸易战离摊牌已不远？
A new flurry of noise indicates a showdown may be imminent in the ongoing solar trade wars between Beijing and the west, reflecting the very real possibility that many of China’s top players may be on the brink of bankruptcy due to a prolonged downturn for their sector. The sudden flurry of new noises comes as yet another top manufacturer, Yingli Green Energy (NYSE: YGE), has just pre-announced second-quarter results that show the industry’s long-anticipated recovery may be weaker than expected. (company announcement)
News Digest: July 31, 2012 报摘： 2012年7月31日
The following press releases and media reports about Chinese companies were carried on July 31. To view a full article or story, click on the link next to the headline.
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- Suning (Shenzhen: 002024) H1 Profit Falls 29 Pct to 1.74 Bln Yuan (Chinese article)
- US Lawmaker Asks For Conditions on CNOOC (HKEx: 883) Nexen Deal (English article)
- Starwood Hotels (NYSE: HOT) Opens First Dual-Branded Ski Resort in China (Businesswire)
- Caixin to IPO in Three Years – Sources (English article)
- Canadian Solar (Nasdaq: CSIQ) Updates Second Quarter 2012 Guidance (PRNewswire)
- Latest calendar for Q2 earnings reports (Earnings calendar)
News Digest: June 23-25, 2012 报摘： 2012年6月23-25日
The following press releases and media reports about Chinese companies were carried on June 23-25. To view a full article or story, click on the link next to the headline.
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◙ China Telecom Equipment Firms May Be Subsidized: US Lawmaker (English article)
◙ Evergrande (HKEx: 3333) Refutes Short-Seller Attack by Citron (PRNewswire)
◙ Canadian Solar (Nasdaq: CSIQ), SkyPower Close Landmark Purchase, Launch Int’l JV (PRNewswire)
◙ Lenovo (HKEx: 992) Denies Downward Forecast Report, Says to Outgrow PC Market (HKEx announcement)
◙ UPS (NYSE: UPS), FedEx (NYSE: FDX) Get Courier Licenses, to Boost Domestic Routes (Chinese article)
◙ China PICC Gets Hong Kong Exchange Nod For Up to $3 Billion IPO: Source (English article)
China Alternate Energy Invests Overseas 中国替代能源企业海外投资一石两鸟
Having diffused a potential trade war with the US over unfair subsidies, China’s alternate energy firms are moving quickly to show they can be important investors in the markets where they do business rather than simply selling their products there, as evidenced by 2 newly announced deals in the wind and solar sector. Interestingly, both deals are in Canada rather than the US, with the first seeing solar panel maker Canadian Solar (Nasdaq: CSIQ) announcing a relatively major new solar power plant joint venture with local partner SkyPower. (company announcement) The second deal is seeing alternate power plant operator Longyuan Power (HKEx: 916) building a major new wind farm, with General Electric (NYSE: GE) announcing it will sell about 50 turbines to the project. (company announcement) Both announcements are relatively straightforward, with each seeing the Chinese company put up investment dollars to build and operate locally-based power generation projects that will help develop the alternate power market. In Canadian Solar’s case, the company is essentially buying a big stake in a number of solar power projects already begun by SkyPower, essentially giving SkyPower some cash to develop additional projects. In Longyuan’s case, this alternate energy arm of one of China’s top power producers is not only putting up money to develop this major new wind farm, but is also showing its commitment to buying equipment for not only from Chinese but also other foreign equipment producers like GE. These latest 2 announcements come just a week after another major solar panel producer, Suntech (NYSE: STP), announced another US solar project at Edwards Air Force Base in California, underscoring it would supply the project with panels manufactured at its US-based factory in the state of Arizona. (previous post) The Chinese firms have embarked on their public relations campaign, most likely with encouragement from Beijing, following the latest developments in an ongoing dispute with the US and Europe over what the western nations believe are unfair subsidies from Beijing. That dispute saw the US open an investigation last summer that could have resulted in large punitive tariffs. But in the most recent development, tariffs recommended by the Obama administration were small and appear to be largely symbolic, indicating Washington wants to avoid a trade war in the important alternate energy space. (previous post) So now it’s China turn to show some good will, and this recent string of announcements appears to be part of that campaign. What’s interesting is that these latest moves by Canadian Solar and Longyuan could actually be not only good for PR, but could also be smart longer term investments if they can eventually be sold to professional alternate power plant operators. Billionaire investor Warren Buffett made it clear last year that he sees potential in the area, investing $2 billion last year for a solar plant in California. (previous post)
Bottom line: A new Chinese wave of investment in western alternate energy projects is largely a PR exercise to diffuse a recent trade dispute, but could also be a good longer-term investment.
Related postings 相关文章:
◙ Suntech, Canadian Solar in Latest PR Moves 尚德电力和Canadian Solar就西方倾销顾虑作出回应
◙ LDK Cuts, Suntech Waits As Solar Winter Nears End 太阳能行业冬季将结束：赛维裁员，尚德等待
News Digest: April 18, 2012 报摘： 2012年4月18日
The following press releases and media reports about Chinese companies were carried on April 18. To view a full article or story, click on the link next to the headline.
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◙ Alibaba Hires Ex-U.S. Official to Aid Washington Lobbying (English article)
◙ Canadian Solar (Nasdaq: CSIQ) and SkyPower Enter Into Purchase and JV Agreement (PRNewswire)
◙ Guangdong High Court Seeks to Mediate in iPad Trademark Dispute (Chinese article)
◙ Sohu (Nasdaq: SOHU) Video Portal Plans IPO In First Half 2013 – Source (Chinese article)
◙ New Oriental (NYSE: EDU) Announces Fiscal Q3 Results, Declares Special Cash Dividend (PRNewswire)
◙ Latest calendar for Q1 earnings reports (Earnings calendar)
Suntech, Canadian Solar in Latest PR Moves 尚德电力和Canadian Solar就西方倾销顾虑作出回应
I’ll close out this week with a couple of items from the solar sector, where heavyweights Suntech (NYSE: STP) and Canadian Solar (Nasdaq: CSIQ) are continuing an ongoing public relations campaign to convince the west that their business is good for everyone and not just China. That campaign comes as growing signs emerge that the industry’s year-long downturn, which has sent most major players into the red, may finally be nearing an end and a new spring may soon arrive. China’s solar sector, which now produces more than half the world’s solar panels, has suffered a double blow over the past year, hit not only by a global supply glut but also by the threat of anti-dumping tariffs in both the US and Europe — the world’s 2 biggest markets. To combat the dumping claims, the sector has made repeated efforts over the last 6 months to show it doesn’t only sell its made-in-China products to the west, but that it can also help western economies by creating new jobs and business opportunities. The latest Suntech and Canadian Solar announcements appear to be part of that PR initiative. In one of the announcement’s Suntech said it has sold solar cells to produce 3.4 megawatts of electricity to Edwards Air Force Base in California, carefully pointing out that cells for the deal were produced at its factory in Arizona. (company announcement) On the other side of the Atlantic, meanwhile, Canadian Solar has just announced it is launching a qualified reseller agreement in Europe. (company announcement) This announcement also seems to be sending a similar message to Suntech’s, by pointing out that resellers in Europe can also make profits from selling Canadian Solar’s solar cells, thus bringing benefits to their local economies. While these announcements are clearly a public relations exercise, I think they also do reflect the very real fact that Suntech, Canadian Solar and their peers realize that they will have to do more to benefit the economies of the countries they sell to, and that they will also have to show the world that they don’t receive unfair subsidies from Beijing in the form of low interest loans, export tax rebates and cheap land. The US has already indicated it won’t punish the Chinese companies with high tariffs if they do more to wean themselves off support from Beijing and do more manufacturing in the US. (previous post) Europe is likely to take a similar approach, meaning the industry should avoid a trade war that would benefit nobody and hurt global development of this important alternate energy sector. Meantime, emerging signs are also appearing that the sector’s downturn has bottomed out, with Suntech’s chairman predicting earlier this month that many players will return to the black by the end of this year. (previous post) If things keep going smoothly on both the trade and pricing fronts, look for a strong rebound from this battered sector starting in the second half of the year, including nice upside potential for solar stocks.
Bottom line: The latest PR moves by Suntech and Canadian Solar show the sector is responding to western dumping concerns, as dangers of a trade war continue to ebb.
Related postings 相关文章:
◙ LDK Cuts, Suntech Waits As Solar Winter Nears End 太阳能行业冬季将结束：赛维裁员，尚德等待
