A leading global manufacturer of solar photovoltaic ("PV")
modules and wafers,
) has entered into an agreement with E.ON Climate &
Renewables GmbH to supply 4.3 megawatts ("MW") of high-quality
JA SOLAR HOLDGS (JASO): Free Stock Analysis
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E.ON Climate & Renewables plans to use 4.3 MW of ReneSola's
245 Watt ("W") multicrystalline solar modules for its solar
project in Sassari, Italy. The modules are expected to be
delivered next year in March.
E.ON Climate & Renewables GmbH, a business unit of E.ON AG,
is engaged in industrial-scale renewable activities. E.ON AG is
one of the world's largest investor-owned power and gas
companies. This is ReneSola's first deal with E.ON and plans to
continue its relationship with E.ON for its projects in the
United States and Europe.
ReneSola's modules have high module conversion efficiency, have
the capability to withstand mechanical upload of up to 5400 Pa,
easy to install and handle various applications as well as
confirms with standards notified by International
Electrotechnical Commission. Therefore, they are in demand
The company continues to develop its solar technology by growing
its module business, increasing global market share while
expanding and strengthening its customer relationships. Moreover,
it seems to be performing well in Europe. Recently, in October,
ReneSola Ltd. announced that it has supplied 10 MW of its 245 W
and 250 W multi crystalline solar modules to saferay GmbH for use
in a new PV power plant. Saferay GmbH is a leading large-scale PV
power plant installer in Germany.
One of the company's peers,
JA Solar Holdings Co. Ltd.
) also seems to be interested in the European continent. In
August this year, JA Solar signed an agreement with A Shade
Greener ("ASG") for the supply of 47 MW of high-quality,
high-efficiency crystalline solar modules. A Shade Greener is a
UK-based PV installer and the largest installer of free solar
panels to the residential market in the United Kingdom.
ReneSola is capitalizing on its low-cost manufacturing base and
technical know-how to consistently improve upon the cost
competitiveness of its solar products through R&D and
technological innovation. Currently, the company's primary
research and development investments include improving its wafer
technology and extending its advantages to modules, developing
low-oxygen concentration solar wafers and producing carbon
composite materials used in solar manufacturing furnaces.
However, recently, ReneSola reported adjusted loss per American
Depositary Share ("ADS") of 77 cents per share in the third
quarter of 2012, missing the Zacks Consensus Estimate of a loss
of 34 cents per ADS. The reported figures were way short of the
year-ago quarterly loss of 25 cents per share.
Moreover, industry-wide oversupply glut leading to sharply
falling Average Selling Prices, tepid module demand in Europe,
and rising competition in the market remain a matter of concern
for the company. The company presently retains a short-term Zacks
#4 Rank (Sell). We have a long-term Neutral recommendation on the
ReneSola is a leading global manufacturer of high-efficiency
solar PV modules and wafers. Leveraging its proprietary
technologies, economies of scale and technical expertise,
ReneSola uses in-house virgin polysilicon and a vertically
integrated business model to provide customers with high-quality
and cost-competitive products. ReneSola solar PV modules can be
found in projects ranging in size from a few kilowatts to
multi-megawatts in markets around the world, including the United
States, Germany, Italy, Belgium, China, Greece, Spain and