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Solar panel manufacturer Suntech Power Holdings Company, Ltd (STP) has installed Philippines’ largest rooftop solar system with the assistance of its Filipino counterpart Propmech Corporation. The companies set up a 571 kilowatt rooftop solar system at the Asian Development Bank’s (:ADB) headquarters in Manila.

Per the agreement, Suntech Power provided high-quality solar modules, while Propmech took charge of the installation and integration aspects. This solar system will be able to generate 600 megawatt hours (“Mwh”) of electricity, lowering yearly carbon dioxide emissions by 307 tons.

In a high price environment of conventional electricity, Suntech Power’s continued effort toward the development of a cost-effective solar system with lower fuel cost will enable it to provide power solutions to consumers in Philippines at a cheaper price.

Being the first entrant in the solar energy-enabled electricity generation arena in Southeast Asia, we believe that Suntech Power has competitive advantage over its peer Trina Solar Limited (TSL).

We believe that Suntech Power’s strong cash position with $663.8 million as of March 31, 2012, enables it to pursue a steady renewable energy research and development strategy. Recently, Suntech Power announced the launch of a high-efficiency 255-watt polycrystalline module. The company will unveil this new 60-cell module at Intersolar Europe 2012. This new innovation fits into almost all kinds of solar applications and employs optimized metallization technology to boost efficiency.

With a steady growth in demand, Suntech Power expects its photovoltaic (“PV”) shipments in the second quarter to increase 20% sequentially. For the fiscal year ending December 31, 2012, Suntech reaffirmed its shipments guidance to be in the range of 2.1 gigawatt (“GW”) to 2.5 GW.

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

Suntech Power’s initiative of generating electricity from a natural source will enable the company to provide energy solutions to its customers at affordable rates, owing to the comparatively lower cost of power generation.

We view Suntech Power as a well positioned company in the sector with a geographically diversified customer base for its proprietary Pluto technology. Moreover, the company’s ongoing expansion programs, higher conversion efficiency through its Pluto technology-enabled modules, subsidy program in China, and improving operating efficiencies are expected to boost growth.

Wuxi, China-based Suntech Power Holdings Company, Ltd is a leading solar energy company. The company designs, develops, manufactures and markets PV cells and modules. Suntech Power Holdings Company, Ltd currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.

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