Brokers take a shine to Chinese solar manufacturers

Share

CitiGroup today staged an about-turn on its rating of GCL Poly shares, from ‘sell' to ‘buy' and more than doubled its target price for the company's stock from US$1 to $2.68, although within eight hours the company issued a profit warning on the Hong Kong stock exchange.

The stock market forecaster explained the change by pointing to the expected beneficial effects on GCL Poly's solar raw material as a result of China's impending anti-dumping trade case against U.S. imports – itself a response to the U.S. Congress' investigation into imported Chinese-manufactured modules.

CitiGroup also points to an anticipated rise in domestic demand as Chinese manufacturers increasingly look inward as a result of the government's solar policies.

But in the subsequent profit warning, based on preliminary FY accounts for 2012, GCL Poly warned of a substantial loss for the 12 months, with particular emphasis on the fourth quarter.

Unsurprisingly, U.S. anti dumping duties and the European debt crisis were cited as the main factors along with ‘overseas enterprises' who ‘began dumping viciously low priced polysilicon to China', according to the announcement.

On a more positive note, the company statement said the closure of ‘less efficient enterprises' in 2012 was an indicator that the price of polysilicon had hit rock bottom and stabilized in December.

Fellow forecaster SmarTrend noted recent bullish trends in the share price of Chinese manufacturers Trina Solar and JA Solar, notwithstanding an extremely volatile year in the share prices of both.

Popular content

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Share

Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.