china govt clearly has shown intention to inject capital into economy and also clean up its dirty environment.
I think the 4th qtr that could happen as China's policy is now taking hold. As far as the 3rd qtr you have not seen a big contract but hopeful that margins and costs cut will beat expectations.
BTW, the one month gain since August 18th for HSOL is 18%. HSOL is still off the radar but once they take notice, it will fly to the moon. Waiting for a stellar Q3 earnings report!
Checks indicate that the recently announced DG policy in China has resulted in a strong pick-up in demand which has resulted in ~2c/W increase in module prices in the local market. Most industry participants are now confident of Chinese market achieving the 13GW annual installation target this year, which is a significant positive change compared to just a month ago where most industry participants were skeptical of China installing even 10GW this year.
We expect Chinese module prices to move higher from the current 56-57c/W range (some companies are suggesting prices have ticked up to 60c/W recently). Tier 1 Chinese solar companies are sold out and we expect this to result in volume upside during the 2H earnings season. While Q3 ASPs could decline by 1c/W or stay relatively flat (due to greater mix of lower priced Chinese shipments), we expect most companies to report upside to Q3 margins and guide to Q4 margins above consensus.
Despite weak macro data, the Chinese solar names have rallied quite a bit this month, thanks to Beijing’s favorable policy support. Month-to-date, ReneSola (SOL) jumped 23.8%, Trina Solar (TSL) advanced 15.5%, Jinko Solar (JKS) rose 12.9%, Yingli Green Energy (YGE) was up 8.6%. Canadian Solar (CSIQ), which has a large exposure to China, jumped 13.7%
HSOL________2.57_______235m lowest among the big ones
market doesn't feel that HSOL is worth a higher valuation.
The 81 Billion Dollars just infused into the top five banks in China will provide the needed financial push for projects in waiting. I expect announcements of new projects by Hanwha SolarOne very soon.
Sentiment: Strong Buy