One of the world's largest producers of solar panels,
Suntech Power Holdings Co. Ltd.
(
STP
) has entered into a contract with Solarstrom AG. As per the terms
of the contract, the former will deliver approximately 26 megawatts
("MW") of monocrystalline and polycrystalline solar panels to the
latter.
Solarstrom AG S.A.G., located in Freiburg, Germany is a
manufacturer and independent provider of high-quality photovoltaic
("PV") plants configured to customer's individual needs. It
constructs efficient plants of all sizes both in Germany and
abroad. Solarstrom also produces solar energy at its own plants and
will use the solar panels for its new power plants in Germany.
Suntech Power has been providing services to Solarstrom's PV power
plant for the last 14 years. Moreover, the company has been
providing solar panels to many other companies due to its proven
high-quality standard modules, which can also be well financed when
installed in projects.
In July this year, the company entered into an agreement with IBC
SOLAR to supply 50 MW of solar panels through the end of 2012.
Prior to that, the company had inked a deal with Krannich Solar to
supply up to 120 MW of solar panels in full-year 2012.
Recently, in September, Suntech Power Holdings announced
preliminary financial results for the second quarter ended June 30,
2012. In the reported quarter, greater demand from European
markets, China, Japan and Australia drove sequential shipment
growth. As a result, Suntech's shipments of PV products for the
quarter increased by approximately 33% from the first quarter of
2012, higher than the previous guidance of a 20% increase in PV
shipments.
In the third quarter of 2012, Suntech expects PV shipments to be
relatively flat with the second quarter of 2012. Suntech now
expects 2012 annual PV shipments to be in the range of 1.8GW to
2.0GW, compared with its previous guidance of 2.1GW to 2.5GW.
Based in Wuxi, China, Suntech Power Holdings Company Ltd. is a
solar energy company that designs, develops, manufactures and
markets a variety of PV products, including a broad range of
value-added building-integrated photovoltaics, or BIPV, products.
The company manufactures silicon wafers and ingots used in
manufacturing its PV cells (both monocrystalline and multi
crystalline) and modules. Suntech's PV system integration services
include the design, installation, commissioning and testing of PV
systems. Suntech's PV system integration services include planning,
engineering, procurement of permits and equipment, construction
management, monitoring and maintenance.
Suntech Power's geographically diversified customer base insulates
it from risk. Other positive factors for Suntech include ongoing
expansion programs, higher conversion efficiency through its Pluto
technology-enabled modules, subsidy program in China, and improving
operating efficiencies.
However, the positives 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 #4 Rank (Sell). We have a long-term Neutral
recommendation on the stock.
Suntech's competitors in the solar industry are
First Solar, Inc.
(
FSLR
) and
SunPower Corporation
(
SPWR
).
FIRST SOLAR INC (FSLR): Free Stock Analysis
Report
SUNPOWER CORP-A (SPWR): Free Stock Analysis
Report
SUNTECH PWR HLD (STP): Free Stock Analysis
Report
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