Suntech Power Holdings Co. Ltd.
) has entered into an agreement with Krannich Solar under which the
former will supply 120 megawatts of solar panels in 2012. Krannich
Solar is one of the top-five photovoltaic systems providers in
Europe. It is a leading value added distributor of complete
systems, components and pre-packaged systems. The two companies
have been in partnership since 2007.
Per the agreement, the companies will continue to work together
to provide high quality solar systems for resellers and installers
in Europe and Australia.
According to European Photovoltaic Industry Association (EPIA),
the cumulative global installed PV capacity stood at almost 67.4 GW
at the end of 2011, compared to only 39.7 GW at the end of 2010.
The agency reports that almost 21 GW of this growth occurred in
Europe. Moreover, the European Union's goal of a 20% share of
renewable sources in the energy basket by 2020 will keep the flow
of new projects going.
In Australia, the solar industry is driven by several regulatory
initiatives that support the installation of solar PV modules in
both rooftop and free-field applications, including the federal
government's nationwide Renewable Energy Target, which has set a
renewable energy goal for Australia of 20% by 2020. Clean Energy
Finance Corporation (CEFC) and Australian Renewable Energy Agency
(ARENA), both established in 2011, will work towards this goal
Global demand for solar panels grew by about 40% in 2011. The
U.S. solar industry installed a record number of panels in 2011,
more than doubling the 2010 number. In April 2012, Suntech Power
supplied 3.4 megawatts of solar panels for a solar installation at
Edwards Air Force Base in Southern California.
Suntech is thus seen to be active worldwide, with increasing
megawatts shipped, capitalizing on the ongoing trend towards
renewables. Other positives include higher conversion efficiency
through its Pluto technology-enabled modules, the subsidy program
in China and improving operating efficiencies. However, these
catalysts are overshadowed by fears of tepid module demand in
Europe, rising competition, the volatile euro and the financial
stability of its customers.
The company presently retains a short-term Zacks #3 Rank (Hold)
that corresponds with our long-term Neutral recommendation on the
The company expects to release first quarter 2012 results on May
23, 2012. The Zacks Consensus Estimates for first quarter and
fiscal 2012 are currently at a loss of 48 cents and $1.26 per
share, respectively. A close peer
First Solar Inc.
) recently reported first quarter results. Earnings fell below the
Zacks Consensus Estimate of 48 cents by 56 cents to digest an
adjusted loss of 8 cents in the first quarter of fiscal 2012. It
also came in below the year-ago quarterly EPS of $1.33.
FIRST SOLAR INC (FSLR): Free Stock Analysis
SUNTECH PWR HLD (STP): Free Stock Analysis
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