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Chinese Solar Companies Surge on Higher Global Demand (Update1)
2010-11-09 16:48:38.363 GMT
(Adds analyst comment in fourth paragraph.)
By Christopher Martin
Nov. 9 (Bloomberg) -- JA Solar Holdings Co. and LDK Solar
Co. led a surge of Chinese renewable energy companies after they
both increased sales guidance, citing higher demand for solar
cells and modules.
LDK's American depositary receipts, which have more than
doubled this year, climbed 82 cents, or 6.1 percent, to $14.31
as of 11:25 a.m. in New York Stock Exchange composite trading.
JA Solar gained 3 cents, or 0.3 percent, to $9.44, after earlier
reaching $9.77, up 3.4 percent. Another Chinese solar company,
ReneSola Ltd., rose 2.6 percent to $12.76. They are the top
three performers in the 38-member Bloomberg Global Leaders Solar
index this year.
With government incentives for renewable energy declining
in Europe and the U.S., cost-conscious developers are
increasingly looking to cut their expenses. That's driving up
market share for Chinese solar panels in an industry where
global demand is expected to increase by 20 percent next year,
according to estimates by Bloomberg New Energy Finance.
"The Chinese manufacturers have better cost structures,
and that's enabling them to capture larger shares of a growing
market," said Paul Clegg, an analyst at Mizuho Securities USA
in New York. "I'm getting more optimistic that volumes are
going to be stronger than people expect next year."
Higher Shipments
JA Solar expects to ship 1,450 megawatts of solar cells
this year, up from prior guidance of 1,350 megawatts, the
company said today in a statement.
LDK's 2010 sales will be between $2.3 billion and $2.34
billion, based on guidance for fourth-quarter revenue and
results from the first three quarters. That's up from its Aug.
10 guidance of $1.95 billion to $2 billion, the company said in
a statement yesterday after the close of regular U.S. trading.
ReneSola raised its guidance on 2010 shipments to 1,130
megawatts to 1,150 megawatts, and expects to deliver up to 1,700
megawatts in 2011, the Jiashan, China-based company said on Nov.
5.
Solarfun Power Holdings Co., another Chinese manufacturer
that reported third quarter results today, raised its 2010
shipment guidance to 785 megawatts from 750 megawatts.
Solarfun fell 86 cents, or 7.5 percent, to $10.61 after
saying it plans to raise $67.8 million in a sale of additional
American depositary shares and reporting a third quarter loss
that analysts weren't expecting.
Solar developers may install about 21,550 megawatts next
year worldwide, up from about 18,150 megawatts this year, the
mid-point of two forecasts from an Oct. 27 report by New Energy
Finance.
For Related News and Information:
Most-read alternative energy stories: MNI ALTNRG <GO>
Top renewable energy, environment page: GREEN <GO>
New Energy Finance top news: TNEF <GO>
--Editors: Will Wade, Reed Landberg
To contact the reporter on this story:
Christopher Martin in New York at +1-212-617-5198 or
cmartin11@bloomberg.net.
To contact the editor responsible for this story:
Reed Landberg at +44-20-7330-7862 or
landberg@bloomberg.net.
