We are downgrading our recommendation on Canadian Solar Inc. to
Neutral from Outperform, primarily due to the uncertain outlook of
the European market, falling revenue share from the Asian market
and the stiff competition faced by the company. However, steady
research and development initiatives will likely counter the
negatives. We are also encouraged by the company's strong cash
position, well-expanded operations in different geographies, and
the growing demand for solar energy along with the company's
increasing order flow. The company's focus on reducing its
operation costs along with its initiative to ramp up its scale of
operations is commendable. We also appreciate its increasing number
of global utility-scale projects.
Ontario, Canada-based Canadian Solar Inc. (CSIQ) is a
vertically-integrated manufacturer of silicon ingots, wafers,
cells, solar modules (panels) and custom-designed solar power
applications. The company designs, manufactures and delivers solar
products and solar system solutions for both on-grid and off-grid
use to customers worldwide. The company was incorporated in Canada
in 2001. Subsequently, in Nov 2006, the company came out with its
maiden public offering.
Canadian Solar operates through eight wholly-owned manufacturing
subsidiaries. Canadian Solar is a leading photovoltaic supplier
with over seven gigawatts (GW) delivered in more than 90
Canadian Solar sells its products to customers worldwide with
operations spread across 20 countries including Australia, Brazil,
China, Germany, Japan, South Korea, South Africa, Spain, Singapore,
Turkey, the United Arab Emirates and the U.S. The company has
active solar projects in the states of California, North Carolina
and Massachusetts in the U.S.
The company offers one of the broadest crystalline silicon solar
module product lines in the industry ranging from modules made of
medium power, low-cost upgraded metallurgical-grade silicon, or
UMG-Si, to high efficiency, high power output mono-crystalline
modules, along with a range of specialty products. The company's
standard solar modules are sold to distributors and system
integrators, and specialty solar modules and products to various
manufacturers, which integrate these solar modules into their own
products or sell and market them as part of their own product
Canadian Solar's standard solar modules are manufactured on
general specifications for use in various residential, commercial,
and industrial solar power generation systems. Its specialty solar
modules and products are manufactured to meet customers'
requirements. Its specialty solar modules and products consist of
customized modules that its customers incorporate into their own
products, such as solar-powered bus stop lighting, and complete
specialty products, such as solar-powered car battery chargers. The
company also implements solar power development projects, primarily
in conjunction with government organizations, to provide solar
power generation in rural areas of China.
Canadian Solar Inc. (CSIQ): Read the Full Research
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