) in the first quarter of 2013 reported loss per American
Depositary Share (ADS) of 45 cents per share, wider than the
Zacks Consensus Estimate of a loss of 39 cents per ADS. However,
its first-quarter loss narrowed from the year-ago quarterly loss
of 47 cents per ADS, thanks to lower operating expenses and
higher solar module shipments.
Net revenues for the quarter rose to $284.2 million from $211.5
million in the prior-year quarter, as a result of a significant
increase in the demand for its solar wafers from customers in the
Asia-Pacific region. Reported quarterly revenue also beat the
Zacks Consensus Estimate of $260.0 million.
Sequentially, net revenue slipped 7.3% as the average selling
prices ("ASPs") of solar wafers and modules decreased. Panel
prices for solar wafers and modules fell by 2 cents each to 61
cents per watt and 22 cents per watt, respectively, during the
first quarter as compared to the fourth quarter of 2012.
Total wafer and panel shipments decreased 7.2% sequentially
during the period to 662.1 megawatts (MW) due to a decrease in
sales of the company's wafer business. However, on a
year-over-year basis, total solar product shipments surged 42.1%
in the reported quarter, mainly the result of increased demand
for the company's solar modules across a number of geographic
regions and the increasing competitiveness of solar power as a
The collapse in prices and wafer shipments sent gross margin into
negative terrain in the reported quarter. Margin decreased to a
negative 2% from positive 3.3% in the fourth quarter of 2012. In
the year-ago quarter, gross margin was a negative 3.8%.
As of Mar 31, 2013, ReneSola had cash and cash equivalents plus
restricted cash of $442.7 million, compared with $268.1 million
at 2012 end. Net cash inflow from operating activities was $4.2
million in the first quarter 2013, compared to net cash outflow
of $87.6 million in the year-ago period. Total debt was $958.6
million at the end of the reported quarter, compared with $790.2
million at the end of 2012. Short-term borrowings were $832.8
million, compared with $733.6 million at the fourth quarter 2012
ReneSola expects its second-quarter revenue to be in the range of
$310 million to $330 million. It also foresees gross margins to
turn positive in the second quarter, between 3% and 5%, compared
to a negative 2% in the first quarter.
The company expects second quarter 2013 solar wafer and module
shipments between 700 MW and 720 MW, with solar module shipments
in a range of 400 MW to 420 MW. Operating cash flow will likely
exceed $40 million.
Full-year 2013 solar wafer and module shipments are forecast to
be between 2.7 gigawatts (GW) and 2.9 GW, with solar module
shipments of 1.4 GW to 1.6 GW.
Based out of China, ReneSola is a leading global manufacturer of
solar wafers and a producer of solar power products. Capitalizing
on proprietary technologies, economies of scale, high production
quality, technological innovations and know-how, and its in-house
virgin polysilicon and solar cell and module production
capabilities, ReneSola provides its customers with solar wafer
products and processing services. The company possesses a global
network of suppliers and customers.
ReneSola introduced the high-efficiency second-generation Virtus
II wafers which utilize a new in-house proprietary Virtus A++
manufacturing process, alleviating the need for crystalline
seeds. The Virtus II modules' use of the Virtus A++ manufacturing
process produces high-efficiency Virtus A++ wafers with lower
light-induced degradation and lower processing cost.
Additionally, the company's newly launched microinverter, Micro
Replus, formally obtained a Certificate of Approval from SAA
Approvals, a third-party certification body accredited to issue
Certificates of Approval for electrical equipment that complies
with the safety requirements of the applicable Australian
standard. ReneSola has also begun research on small-scale storage
Going forward, ReneSola expects to continue to reduce its solar
module manufacturing costs through improvements in its
manufacturing methods and reduction in material costs. The
company presently retains a Zacks Rank #3 (Hold).
Although ReneSola offered an optimistic view for the rest of the
year, ReneSola ADSs closed at $1.92 on May 16, down 13.1%
reflecting the ongoing imbalance between supply and demand, and
competitive pricing that is pressuring its business as well as
Other Chinese solar stocks were also under pressure yesterday.
Trina Solar Limited
) dropped 5.1% to $5.37 and
JA Solar Holdings Co., Ltd.
) dropped 4.7% to $5.45, while
Yingli Green Energy Holding Co. Ltd.
) gained one cent to $2.46.
JA SOLAR HOLDGS (JASO): Free Stock Analysis
RENESOLA LT-ADR (SOL): Free Stock Analysis
TRINA SOLAR LTD (TSL): Free Stock Analysis
YINGLI GREEN EN (YGE): Free Stock Analysis
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