Solar panel manufacturer
Suntech Power Holdings Company, Ltd
) has installed Philippines' largest rooftop solar system with the
assistance of its Filipino counterpart Propmech Corporation. The
companies set up a 571 kilowatt rooftop solar system at the Asian
Development Bank's (ADB) headquarters in Manila.
Per the agreement, Suntech Power provided high-quality solar
modules, while Propmech took charge of the installation and
integration aspects. This solar system will be able to generate 600
megawatt hours ("Mwh") of electricity, lowering yearly carbon
dioxide emissions by 307 tons.
In a high price environment of conventional electricity, Suntech
Power's continued effort toward the development of a cost-effective
solar system with lower fuel cost will enable it to provide power
solutions to consumers in Philippines at a cheaper price.
Being the first entrant in the solar energy-enabled electricity
generation arena in Southeast Asia, we believe that Suntech Power
has competitive advantage over its peer
Trina Solar Limited
We believe that Suntech Power's strong cash position with $663.8
million as of March 31, 2012, enables it to pursue a steady
renewable energy research and development strategy. Recently,
Suntech Power announced the launch of a high-efficiency 255-watt
polycrystalline module. The company will unveil this new 60-cell
module at Intersolar Europe 2012. This new innovation fits into
almost all kinds of solar applications and employs optimized
metallization technology to boost efficiency.
With a steady growth in demand, Suntech Power expects its
photovoltaic ("PV") shipments in the second quarter to increase 20%
sequentially. For the fiscal year ending December 31, 2012, Suntech
reaffirmed its shipments guidance to be in the range of 2.1
gigawatt ("GW") to 2.5 GW.
Suntech expects to maintain cell and module production capacity
at 2.4 GW and wafer capacity at 1.6 GW in 2012. Full year 2012
capital expenditure is expected to be in the range of $120 million
to $150 million.
Suntech Power's initiative of generating electricity from a
natural source will enable the company to provide energy solutions
to its customers at affordable rates, owing to the comparatively
lower cost of power generation.
We view Suntech Power as a well positioned company in the sector
with a geographically diversified customer base for its proprietary
Pluto technology. Moreover, the company's ongoing expansion
programs, higher conversion efficiency through its Pluto
technology-enabled modules, subsidy program in China, and improving
operating efficiencies are expected to boost growth.
Wuxi, China-based Suntech Power Holdings Company, Ltd is a
leading solar energy company. The company designs, develops,
manufactures and markets PV cells and modules. Suntech Power
Holdings Company, Ltd currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating.
SUNTECH PWR HLD (STP): Free Stock Analysis
TRINA SOLAR LTD (TSL): Free Stock Analysis
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