Suntech Introduces New Module


Suntech Power Holdings Company Ltd. (STP) will be introducing a high efficiency 255-watt polycrystalline module. The new 60-cell module that the company will launch at Intersolar Europe 2012 employs optimized metallization technology to boost efficiency. The new module fits into almost all kind of solar application and it is also one of the most powerful ones among its arena.

According to Suntech Power this 255-watt panel has roughly 5% more power than the industry average and offers one of the best price to performance ratios in the market. Going forward. Going ahead, Suntech plans to boost the solar panel’s nominal power output to 260 watts.

All Suntech modules comes with 10-year material and workmanship and 25-year power output warranty. The 255W polycrystalline module has been certified as per International Electrotechnical Commission or IEC norms. IEC is a non-profit, non-governmental international standards organization that prepares and publishes International Standards for all electrical, electronic and related technologies.

The module also features an anti-reflective hydrophobic layer that curtails surface dust and allows it to absorb more light. Thus, the layer enables improved weak-light performance and enhanced module performance over time. Further, a long module lifecycle and consistent power output for system owners are made possible by the quality components used in the module.

Wuxi, China-based Suntech is a leading solar energy company. The company designs, develops, manufactures and markets photovoltaic (:PV) cells and modules.

In the second quarter of 2012, Suntech expects PV shipments to increase by more than 20% from the first quarter of 2012. Gross margin in the second quarter of 2012 is expected to be in the range of 3% to 6%. For the fiscal year ending December 31, 2012, Suntech reaffirmed the guidance for shipments to be in the range of 2.1GW to 2.5GW.

Suntech expects to maintain cell and module production capacity at 2.4GW and wafer capacity at 1.6GW in 2012. Full year 2012 capital expenditures are expected to be in the range of $120 million to $150 million.

Suntech Power is one of the largest producers of PV solar modules under its proprietary Pluto technology with a geographically diversified customer base. Other positive factors for Suntech include ongoing expansion programs, higher conversion efficiency through its Pluto technology-enabled modules, subsidy program in China, and improving operating efficiencies. However, the positives are overshadowed by fears of tepid module demand in Europe, rising competition, the volatile Euro and the financial stability of its customers.

In the near term, the Zacks #3 Ranked (Hold) Suntech Power will move in tandem with the market. This is in line with its peers Trina Solar Limited (TSL) and Canadian Solar Inc. (CSIQ). In the longer run, our ‘Neutral’ recommendation on the stock indicates that it would perform in sync with the broader market.

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