Sector Snap: Solar energy companies
NEW YORK (AP) — Shares of Chinese companies that make solar energy products got a boost Tuesday, after JA Solar Holdings Co. reported better-than-expected sales and shipments.
The company also backed its shipment guidance for the year, giving investors a glimmer of hope that global demand for solar products may have stabilized.
Like other companies in the sector, JA Solar has struggled in recent months. Prices have fallen as a rise of competitors, especially those from China, flooded the market with cheap solar modules. Europe, which has traditionally been the biggest market for the solar industry, also is expected to cut back on government incentives this year, trimming demand.
But JA Solar, which is based in China, said Tuesday that demand for its products remains strong, noting that first-quarter sales in Italy and Germany were higher than expected, and that it expanded its presence in the Middle East and Japan during the quarter.
The company also said that it's taken steps to protect itself from new U.S. tariffs on Chinese solar products, by moving production of most of its products sold in the United States to its partners outside of China, reducing its exposure.
For the three months ended March 31, the company's revenue shrank 56 percent to 1.6 billion yuan ($354.4 million), but still managed to easily beat average analysts' predictions of $234.5 million. Shipments fell 8.1 percent to 366 megawatts, but were ahead of company predictions of 350 megawatts.
JA Solar expects higher shipments in the current quarter, of between 420 megawatts and 440 megawatts. It also backed its full year shipment forecast of between 1.8 gigawatts and 2 gigawatts.
In afternoon trading, JA Solar posted the sector's largest gains, rising 12 cents, or 13 percent, to $1.00 in afternoon trading. Still, shares have lost more than 80 percent over the past 12 months. They traded near $6 a year ago.
Shares of other long-battered Chinese solar stocks also rose. China Sunergy Co. rose 21 cents, or 17 percent, to $1.45; Suntech Power Holdings Co. added 11 cents, or 7.1 percent, to $1.65; Trina Solar Ltd. rose 31 cents, or 5.3 percent, to $6.13; and Yingli Green Energy Holding Co. added 7 cents, or 2.7 percent, to $2.65.
In addition, JinkoSolar Holding Co. added 16 cents, or 4.1 percent, to $4.10; and LDK Solar Co. rose 5 cents, or 2.7 percent, to $1.69.
