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)

News Digest: April 13, 2012 报摘： 2012年4月13日

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The following press releases and media reports about Chinese companies were carried on April 12. To view a full article or story, click on the link next to the headline.

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◙ Google (Nasdaq: GOOG) to Sell Motorola Handset Business to Huawei – Report (English article)

◙ NetEase (Nasdaq: NTES) Accuses Tencent (HKEx: 700) of Copying News (Chinese article)

◙ 360Buy Launches Online Real Estate Business (English article)

◙ Canadian Solar (Nasdaq: CSIQ) Launches Reseller Program for the EMEA Region (PRNewswire)

◙ Wal-mart (NYSE: WMT) International Focusing on Existing Markets (English article)

◙ Latest calendar for Q1 earnings reports (Earnings calendar)

News Digest: March 8, 2012 报摘： 2012年3月8日

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The following press releases and media reports about Chinese companies were carried on March 8. To view a full article or story, click on the link next to the headline.

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◙ China Mobile (HKEx: 941) to Invest in National Cable TV Operator – Source (English article)

◙ Sinopec (HKEx: 386) Clarifies Situation on China Gas (HKEx: 384) Bid (HKEx announcement)

◙ Proview Applies to Block Apple (Nasdaq: AAPL) iPad Imports Amid Trademark Dispute (Chinese article)

◙ China Lodging Group (Nasdaq: HTHT) Reports Q4 and Full Year Results (PRNewswire)

◙ Canadian Solar (Nasdaq: CSIQ) Reports Q4 and Fiscal Year 2011 Results (PRNewswire)

◙ Latest calendar for Q4 earnings reports (Earnings calendar)

New Solar Storm Brews in Europe 欧盟或发起反倾销调查 中国光伏业再蒙阴影

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It seems the storm dumping rain on Chinese solar cell makers for most of the last year won’t end anytime soon, with Chinese media now citing gloomy industry watchers saying Europe is likely to soon launch an own anti-dumping investigation into the industry following a similar one in the US. (English article) I don’t want to rush to judgment here, but perhaps it’s time that Beijing and China’s solar firms themselves admit that perhaps they are unfairly subsidized by the Chinese government, and try to work with European and US government officials to find a new plan that would address everyone’s concerns. Of course that doesn’t seem likely to happen anytime soon, with China continuing to deny that it unfairly subsidizes its industry, which now produces more than half of the world’s solar cells, with things like export rebates, low-interest loans and other incentives like free or cheap land. According to a report on the front page of today’s China Daily business section, a Commerce Ministry official says the European Union has already accepted complaints from its own solar cell makers over anti-dumping allegations against their Chinese rivals, and is likely to soon launch an official investigation, which means punitive tariffs may be coming soon if the investigation results in a ruling against China. Such a ruling would be even more devastating to Chinese solar cell makers than a similar ruling likely to come soon from the US, as Europe now account for a hefty 80 percent of all of China’s solar-related exports, with shipments of solar panels to the market worth more than $30 billion in 2010. Battered shares of Chinese solar firms, struggling to recover from their industry’s worst-ever downturn for most of the last year, tumbled even more on Tuesday trade in New York as word of the possible EU investigation spread. Industry leader Suntech (NYSE: STP) dropped 6 percent to $2.85, once again approaching its all-time low after a February rally on hopes that the industry’s downturn had bottomed out and prices were starting to stabilize. Other solar firms saw similar results on Wall Street, with Yingli (NYSE: YGE), Trina (NYSE: TSL) and Canadian Solar (Nasdaq: CSIQ) all down between 3 and 4 percent. Recent signals coming from the sector in its latest quarterly results indicate that many executives are cautiously optimistic that a rebound is on the way, partly driven by an anticipated big jump in building of new solar power plants in their home China market as well as many other developing markets. Such a mini-boom may indeed be coming, but it will hardly be sufficient to offset the huge losses that all of these companies would suffer if they lose access to the US and EU markets that now account for most of their sales. If that happens, which looks very likely, don’t expect to see any of these companies return to profitability anytime soon.

Bottom line: An anti-dumping investigation against Chinese solar panel makers in Europe looks likely, dealing an even bigger blow to the sector than a similar ongoing US investigation.

Related postings 相关文章:

◙ Yingli Results: Rescue En Route From China? 英利财报：来自中国政府的营救？

◙ Suntech Cleans House As Rebound Nears 光伏行业或年中回

◙ Solar: New Tie-Ups as US Ruling Looms 光伏产品倾销裁决临近 中国企业忙于外联公关

News Digest: February 22, 2012 报摘： 2012年2月22日

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The following press releases and media reports about Chinese companies were carried on February 22. To view a full article or story, click on the link next to the headline.

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◙ Alibaba.com (HKEx: 1688) Reports Q4 Results, Announces Privatization Plan (Results; Plan announcement)

◙ US Power Firm AES (NYSE: AES) Eyes China Asset Sales: Sources (English article)

◙ Canadian Solar (Nasdaq: CSIQ) Raises Q4 Shipment Guidance to 430-440 MW (PRNewswire)

◙ KKR, TPG Among Firms Eyeing Nasdaq-listed AsiaInfo (Nasdaq: ASIA) -Sources (English article)

◙ Yingli Green Energy (NYSE: YGE) Pre-announces Preliminary Q4, Full Year Results (PRNewswire)

◙ Latest calendar for Q1 earnings reports (Earnings calendar)

Suntech Cleans House As Rebound Nears 光伏行业或年中回

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Leading solar panel maker Suntech (NYSE: STP) has put out a broadly positive pre-earnings announcement, showing the struggling market may be nearing bottom in its current downcycle as the company also took major moves to control costs. Investors seemed to like what they saw, bidding up Suntech shares more than 8 percent in Friday trading after the news came out, even though shares are still at about a quarter of their levels from 2 years ago. In its earnings pre-announcement, Suntech said its shipments declined 10 percent in the fourth quarter from the third, a bit better than the 20 percent decline it originally expected. (company announcement) At the same time, its shipments for all of 2011 came in at 2.09 gigawatts, also a bit better than its previous forecast for 2 gigawatts. On the cost side, the company said it made major progress in reducing its debt and accounts receivable in the fourth quarter, both of which should help strengthen its balance sheet and make it more efficient. Investors seem to have focused on the better-than-expected revenue numbers that may reflect a broader industry rebound, with solar shares all logging sharp gains on Friday. Leading the pack was Canadian Solar (Nasdaq: CSIQ), which jumped 17 percent, while JA Solar (Nasdaq: JASO) was up 9 percent. Trina (NYSE: TSL) and Yingli (NYSE: YGE) also both logged nice gains of more than 5 percent. Of course, all of these stocks are still at a fraction of their level from 2 years ago, as the industry struggles with a big supply glut resulting from its rapid expansion over the last few years. In another positive sign for the industry, Trina has announced a new $100 million loan facility from Britain’s Standard Chartered (London: STAN) in what looks like a clear signal to the markets that private commercial banks are still confident enough to lend to these stronger solar companies even though most are now currently losing money. (previous post) By comparison, some of the weaker players like LDK Solar (NYSE: LDK) have had to resort to funding from Chinese banks and other local investors, which often provide funds for reasons that more political than commercial. Recent media reports indicate the sector is cautiously optimistic that demand will pick up later this year, with many companies hoping to restart idle capacity if prices rise above a certain level. Despite the upbeat signs, one of the big question marks in all this the current US anti-dumping investigation into Chinese solar panels, which could result in punitive tariffs in the near future. (previous post) But China has made recent signs that it is willing to discuss the issue and its broader subsidies for exporters in general, meaning the trade war might be short lived, perhaps being resolved after upcoming US presidential elections in November. If that happens and signs of stabilization continue, look for a rebound in both the sector and company share prices starting around the middle of the year.

Bottom line: The latest results from Suntech and broader industry comments point to a fledgling rebound for the solar battered sector starting around the middle of the year.

Related postings 相关文章:

◙ Solar: New Tie-Ups as US Ruling Looms 光伏产品倾销裁决临近 中国企业忙于外联公关

◙ Sany and Yingli Take Different German Tacks 三一重工和英利的德国交易或前景迥异

◙ LDK’s German Buy: Two Losers Combine 赛维LDK收购Sunways将使前者境况雪上加霜

News Digest: January 6, 2012

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The following press releases and media reports about Chinese companies were carried on January 6. To view a full article or story, click on the link next to the headline.

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◙ Sinopec (HKEx: 386) Says Ministry of Finance Raises Oil Windfall Tax Threshold to $55 (English article)

◙ SARFT TV Drama Rules May Extend to Online Video (English article)

◙ Lenovo (HKEx: 992) Revamps Regions, Former Acer (Taipei: 2353) CEO To Head Europe (Chinese article)

◙ Qihoo 360 (NYSE: QIHU) Announces Authorization for Share Repurchase (PRNewswire)

◙ Canadian Solar (Nasdaq: CSIQ) and Ningxia State Power Complete 10 MW China Project (PRNewswire)

News Digest: December 21, 2011

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The following press releases and media reports about Chinese companies were carried on December 21. To view a full article or story, click on the link next to the headline.

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◙ Ping An Insurance (HKEx: 2318) to Sell Up to 26 Billion Yuan of Convertibles (English article)

◙ China Telcos Announce November 2011 Subscriber Totals (English article)

◙ Xiaomi Lands USD 90 Mln in New Funding (English article)

◙ Canadian Solar (Nasdaq: CSIQ), TransCanada Corp In Deal For 86MW Solar Project in Ontario (PRNewswire)

◙ Mindray Medical (NYSE: MR) to Acquire a Controlling Stake in Hunan Changsha TDR Biotech (PRNewswire)

Solar Slips Squarely Into the Red 太阳能行业陷入全线亏损

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The negative news just keeps coming from the solar sector, where industry leader Suntech (NYSE: STP) reported its second consecutive quarterly loss and Canadian Solar (Nasdaq: CSIQ), one of the few firms that had managed to stay profitable, finally slipped into the loss column as inventories swelled and their margins continued a downward slide. (Suntech announcement; Canadian Solar announcement) It goes without saying that industry laggard LDK Solar (NYSE: LDK) also reported a massive third-quarter loss (company announcement), and all 3 companies predicted more turbulence ahead. The one potential bright spot is plummeting prices for polysilicon, the main raw material used to make their solar cells, which, ironically could someday push solar cell prices down to the point where they become competitive with traditional power sources like coal and oil. Unfortunately, by the time that happens many of these solar cell makers could be out of business. In addition to huge oversupply in the market, the Chinese firms face potential punitive tariffs from the US — one of the solar industry’s top markets — if an ongoing investigation determines they are selling their products at below-market prices. (previous post) The Chinese companies have said they may request their own anti-dumping investigation against Western makers of polysilicon, in a clear tit-for-tat move that certainly won’t help the industry if China implements its own retaliatory punitive tariffs against polysilicon makers. Foreign media are reporting that Chinese solar cell manufacturers are quietly making plans to move some of their production to the United States and other Western markets to avoid potential punitive tariffs, and are also stepping up their efforts to improve technology to make their products more efficient at converting sunlight into electricity. (English article) I still see at least 1 and possibly 2 more painful years ahead for this sector, with at least 2-3 major players likely to either close or be purchased by other companies before the crisis ends. In the meantime, look for the bad news to continue in the fourth quarter and into 2012.

Bottom line: Latest results show the entire solar cell sector has now slipped solidly into the red, with losses likely to continue through most or all of next year.

Related postings 相关文章:

◙ Beijing, Yingli Send Mixed Solar Signals 英利和中国政府似乎“背道而驰”

◙ New Solar Signals: Slowdown Easing Amid Writedowns 太阳能企业减计库存 行业或将开始摆脱危机

◙ Solar Fight Sees Accusations Flying 中美太阳能纠纷引发口水大战

 

New Solar Signals: Slowdown Easing Amid Writedowns 太阳能企业减计库存 行业或将开始摆脱危机

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The latest signals from embattled solar panel makers indicate the sector’s worst-ever downturn could be starting to ease, even as China turns up the rhetoric in a growing war of words over dumping accusations by Western manufacturers. Both Canadian Solar (Nasdaq: CSIQ) and Renesola (NYSE: SOL) have released updated guidance ahead of their official third-quarter announcements and the word, while downbeat, appears to show some signs that the crisis has bottomed out. Both firms lowered their margin outlook by moderate amounts, and both also lowered their third-quarter shipment targets, but again only by small to moderate amounts. (Canadian Solar announcement; Renesola announcement) But perhaps more significantly, both firms took big write-downs for unsold inventory, with Renesola writing down $20 million and Canadian Solar writing off about twice that amount. As a result, Renesola said it will post a $8 million loss for the third quarter.  These write-downs follow a similar write-down announced last week by Trina Solar (NYSE: TSL) (previous post), which gave similar lowered guidance as well. (previous post) In my view these write-downs look relatively significant, as one wouldn’t expect to see companies take such write-downs unless they were fairly confident the worst of the downturn was over, as most prefer to take this kind of charge all at once rather than repeatedly in smaller amounts over a longer period. Renesola itself sounded a slightly upbeat note, saying it expected more gloom in the fourth quarter and first quarter of 2012, but that things could improve after that. Meantime, China made a significant gesture in response to allegations that it unfairly subsidies its solar panel makers, with a major state-run firm announcing it was suspending plans to build $500 million worth of solar energy plants in the US due to uncertainty about potential new punitive tariffs against China solar panel makers. (English article) Indeed, such a plan would become uneconomical if the US imposes punitive tariffs, as the Chinese builder was planning to use Chinese-built solar cells for this series of plants which would suddenly become much more expensive under new tariffs. I still think the US is likely to levy these tariffs due to election-year politics, but clearly this kind of tactic by the Chinese may make some US policymakers think twice about such actions.

Bottom line: New guidance from 2 major solar players appear to show an easing of the industry’s crisis, as the war of words heats up in the US-China solar trade dispute.

Related postings 相关文章:

◙ More Solar Gloom From Trina

◙ Solar Fight Sees Accusations Flying 中美太阳能纠纷引发口水大战

◙ China Solars Brace for Icy 2012 With US Trade Complaint 中国太阳能产业需直面美欧关税壁垒

China Brushes Off Western Protest With New Ming Yang Support 明阳获巨额融资 表明中国不理会西方反对

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If China plans to cut back its subsidies to its alternate power sector in response to complaints from the West, it sure isn’t showing its intentions in a new announcement about a massive new loan support program for leading wind power equipment maker Ming Yang. (company announcement)  According to the announcement, China Development Bank, a major government policy lender, will provide Ming Yang with up to $5 billion in financing to help its customers both at home and abroad purchase its wind generation equipment. This is exactly the kind of state-backed subsidy that is at the center of a debate in both the US and Europe over solar energy, which has seen Western governments finally sit up and take notice of China’s massive support for its alternate energy sector. Punitive tariffs against China’s solar sector look almost inevitable as a result of Beijing’s huge support policies (previous post), and this kind of announcement of yet even more support for Ming Yang, even though its focus is wind and not solar power, will hardly help China’s case if it really wants to avoid such punitive tariffs, which would send a chill through its solar firms already suffering through their worst-ever downturn. If this kind of high-profile announcement is Beijing’s way of saying it has no intent to stop offering strong backing for its alternative energy makers, I would look for new punitive tariffs to come sooner rather than later and for a drawn-out standoff as neither the West nor China yields to pressure to compromise. Of course, there’s also the possibility that Ming Yang’s announcement is just very poorly timed, and China might still be willing  to curb its support for its solar energy firms. Time will tell. Meantime, one of the many struggling solar firms, Canadian Solar (Nasdaq: CSIQ) has just issued updated guidance that is very mixed. (company announcement) It says it will meet its unit sales targets for the third quarter, but that its margins will come in well below previous guidance due to stiff competition that has resulted in sharply falling prices. All this means the crisis could be easing, but it’s not over yet and it could heat up all over again if either the US or Europe issues punitive tariffs.

Bottom line: A new announcement of massive state loan support for a top Chinese wind power firm indicates China will keep strongly supporting its alternate energy sector despite Western protests.

Related postings 相关文章:

◙ More Solar Woes With Plunging Prices

◙ US Congress Turns Up Heat in China Solar Debate

◙ Tech, Environmental Issues Cast New Clouds Over Solar Firms

News Digest: September 2, 2011

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The following press releases and media reports about Chinese companies were carried on September 2. To view a full article or story, click on the link next to the headline.

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◙ Canadian Solar (Nasdaq: CSIQ), Trina (NYSE: TSL), Suntech (NYSE: STP) to Attend German Solar Show

◙ Google’s (Nasdaq: GOOG) Ex-China Head Kai-fu Lee Raises $180 Mln for Tech Fund (English article)

◙ Lenovo (HKEx: 992) Gets Glam with Three New Fashion-Forward Ultraportable Laptops (Businesswire)

◙ Paypal (Nasdaq: EBAY) China Applies for Third-Party Payment License (English article)

◙ Nokia (Helsinki: NOK1V) in Massive China Layoffs, Some Question Legality (Chinese article)