Canadian Solar Inc.
) has been chosen to supply solar modules for Turkey's first and
largest governmental solar PV project.
Canadian Solar will supply these products to Gehrlicher Merk Solar
Enerji A.S. The company is an equally owned JV between German
photovoltaics company, Gehrlicher Solar AG and Turkish Akfel Group.
Gehrlicher Merk Solar Enerji A.S. with headquarters in Istanbul,
will serve photovoltaic markets in Turkey and its neighboring
The two companies have won the public tendering for the Gursu
municipality of Bursa in Turkey. The milestone PV project has a
total capacity of 96 kW and is supported directly by the Turkish
Prime Minister's office. Canadian Solar was selected from 13
different module manufacturers for this project.
For the PV project in Gursu, Gehrlicher Merk Solar will use
Canadian Solar's CS6P-P modules. The module type CS6P-P is a
high-performance module featuring among other things positive power
tolerance, a robust frame, anti-reflective with self-cleaning
surface, outstanding performance at low irradiance, high energy
yield, a 10-year product warranty on materials and workmanship and
a 25-year linear power output warranty. The module once again
recently delivered the highest PV U.S. (PTC) ratings - a
universally recognized indicator of a solar system's real
performance and power output.
Turkey is regarded as one of the big future emerging markets for
solar energy worldwide, as the insolation rates and temperature
conditions are very favorable and in accordance with the
government's decision earlier this year to place greater emphasis
on fostering solar and simplifying the licensing process for power
Canadian Solar caters to a geographically diverse customer base
spread across its key markets in Germany, Spain and the U.S., as
well as emerging market opportunities in France, the Czech
Republic, Italy, South Korea, Canada, Japan and China.
However, in the near term, fortunes will be impacted by the
industry-wide oversupply, leading to sharply falling Average
Selling Prices, tepid module demand in Europe and rising
competition in the market. Given the industry wide high inventory
level, we do not foresee any short-term improvement in margins of
Moreover, Canadian Solar reported higher quantum of losses for the
second quarter of 2012. In the reported quarter, the company with a
loss per share of 59 cents missed the Zacks Consensus Estimate of a
loss of 30 cents per share. Results were also much lower when
compared to earnings of 16 cents in the year-ago period.
Canadian Solar presently retains a short-term Zacks #4 Rank (Sell).
We have a long-term Neutral recommendation on the stock. The
company mainly competes with
JA Solar Holdings Co. Ltd.
JinkoSolar Holding Co. Ltd.
CANADIAN SOLAR (CSIQ): Free Stock Analysis
JA SOLAR HOLDGS (JASO): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
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