News

April 15, 2008

Is It Time For A Re-rating Of ReneSola?

By Rue Swabey

China-based solar wafer manufacturer ReneSola released full year 2007 results on 19th March. The results were solid and showed annual turnover of US$249 million, an increase of 195 per cent over the year-ago period. Net profit was US$42.9 million for the year, and US$17.5 million for the quarter. The shares are up by nearly 50 per cent since the release of results amid heavy trading, which has prompted talk of a bid.

Aim-traded ReneSola uses recycled silicon and broken wafers to manufacture solar wafers. Demand for solar products is robust and ReneSola is increasing capacity to meet demand. But the global shortage of polysilicon, a key input in photovoltaic cells, is putting a lid on the company’s short-term growth prospects. However, in response ReneSola is diversifying feedstock sources by taking the business upstream. Last year it formed a joint venture with a polysilicon facility in Henan province,...