With its domestic market becoming even more crowded with silicon, solar cell, and module makers, China Sunergy (CSUN-$3.91) is looking abroad to stabilize margins. In first-quarter 2010, management expects domestic shipments to be only 35 percent of forecasted 68 - 75 MW (down from 56 percent of total 2008 shipments).
Adding scale and market share — at least near-term — will pressure margins. It is difficult to comprehend how recent downstream acquisitions of solar module makers will stabilize margins — as predicted by chairman Lu. Positioning itself as a player in new markets, like Ontario and Italy, will require even more aggressive price breakpoints: Blended ASP during the fourth quarter declined year-on-year 57.5 percent to US$1.26 per watt. Read More >….
Adding scale and market share — at least near-term — will pressure margins. It is difficult to comprehend how recent downstream acquisitions of solar module makers will stabilize margins — as predicted by chairman Lu. Positioning itself as a player in new markets, like Ontario and Italy, will require even more aggressive price breakpoints: Blended ASP during the fourth quarter declined year-on-year 57.5 percent to US$1.26 per watt. Read More >….
Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.
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