Yesterday, we heard pretty positive earnings results from Suntech. Many Chinese photovoltaic suppliers have produced revenue upside largely due to volumes with modest margin upside and stable pricing outlooks for 2H10.
But today it was Yingli's turn and they had very good news. Yingli Green Energy Holding (NYSE:YGE) designs, manufactures and sells photovoltaic modules in China and internationally. Yingli also designs, assembles, sells and installs PV systems and is one of the world's largest vertically integrated photovoltaic manufacturers.
Here are the highlights from this morning's earnings call:
- Total net revenues were $398.1 million. The firm crushed consensus revenue of $371.13 million.
- Gross profit was $133.5 million with a historical high gross margin of 33.5 percent.
- Operating income of $83.4 million and operating margin of 20.9 percent.
- ASP decreased slightly in the quarter due mostly to currency exchange rates.
- 2010 Guidance for shipments is 950 megawatts to one gigawatt at a margin of 28 percent to 30 percent gross margin. The company is sold out for the year and continues to work on expansion.
- Q3 margin guidance is 28 to 30 percent.
According to representatives of the firm, initial high efficiency PANDA production was begun on a 300-megawatt capacity line. Efficiency rates of 19 percent have been achieved on a pilot line. The company expects to deliver 60 megawatts of the PANDA product at a price premium in the high single digits. The firm also kicked off its collaboration with Innovalight to boost the average efficiency of multicrystalline silicon-based solar cells.
Fine Silicon, their polysilicon manufacturing facility with a designed annual production capacity of 3,000 metric tons, began commercial operation earlier this month.
The company is confident in its prospects for a strong second half of the year.
Yingli's stock was trading slightly up in the early hours of trading.
According to Barclays Capital:
- Market share gains in the U.S. could likely offset any slowdown in Germany in Q1 2011. Additionally, checks suggest demand from European markets such as Italy and France remains strong, particularly in 1H 2011. Barclays' new estimates are based on $1.40/W ASPs exiting 2011.
- Current capacity should enable 1.3 gigawatts to 1.4 gigawatts shipments in 2011, but an additional 200 to 400 megawatt capacity expansion could likely drive 2011 shipments upside to 1.4-to-1.5-gigawatts levels.