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Canadian Solar Inc. (CSIQ): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

By: Zacks.com
Posted: 12/6/2013 7:00:00 AM
Referenced Stocks: CSIQ

Summary:
We are downgrading our recommendation on Canadian Solar Inc. to Neutral from Outperform, primarily due to the uncertain outlook of the European market, falling revenue share from the Asian market and the stiff competition faced by the company. However, steady research and development initiatives will likely counter the negatives. We are also encouraged by the company's strong cash position, well-expanded operations in different geographies, and the growing demand for solar energy along with the company's increasing order flow. The company's focus on reducing its operation costs along with its initiative to ramp up its scale of operations is commendable. We also appreciate its increasing number of global utility-scale projects.

Overview:

Ontario, Canada-based Canadian Solar Inc. (CSIQ) is a vertically-integrated manufacturer of silicon ingots, wafers, cells, solar modules (panels) and custom-designed solar power applications. The company designs, manufactures and delivers solar products and solar system solutions for both on-grid and off-grid use to customers worldwide. The company was incorporated in Canada in 2001. Subsequently, in Nov 2006, the company came out with its maiden public offering.

Canadian Solar operates through eight wholly-owned manufacturing subsidiaries. Canadian Solar is a leading photovoltaic supplier with over seven gigawatts (GW) delivered in more than 90 countries.

Canadian Solar sells its products to customers worldwide with operations spread across 20 countries including Australia, Brazil, China, Germany, Japan, South Korea, South Africa, Spain, Singapore, Turkey, the United Arab Emirates and the U.S. The company has active solar projects in the states of California, North Carolina and Massachusetts in the U.S.

The company offers one of the broadest crystalline silicon solar module product lines in the industry ranging from modules made of medium power, low-cost upgraded metallurgical-grade silicon, or UMG-Si, to high efficiency, high power output mono-crystalline modules, along with a range of specialty products. The company's standard solar modules are sold to distributors and system integrators, and specialty solar modules and products to various manufacturers, which integrate these solar modules into their own products or sell and market them as part of their own product portfolio.

Canadian Solar's standard solar modules are manufactured on general specifications for use in various residential, commercial, and industrial solar power generation systems. Its specialty solar modules and products are manufactured to meet customers' requirements. Its specialty solar modules and products consist of customized modules that its customers incorporate into their own products, such as solar-powered bus stop lighting, and complete specialty products, such as solar-powered car battery chargers. The company also implements solar power development projects, primarily in conjunction with government organizations, to provide solar power generation in rural areas of China.


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