| Yingli Gives Preliminary Q3 View, Lowers Shipment Guidance | |
| | |
|
Yingli Green Energy Holding Co. Ltd. YGE or Yingli Solar expects lower-than-expected shipments in the third quarter of 2015. The company is scheduled to report third-quarter results on Dec 2, 2015, before the opening bell.
Yingli Solar, in its preliminary financial results for the quarter, revealed that photovoltaic (“PV”) module shipments (excluding OEM production for third parties) were in the range of 450 megawatt (“MW”) to 460 MW, down from its earlier forecast of 550 MW to 580 MW. The downside was due to lower-than-expected utilization of production facilities for in-house PV modules.
However, Yingli Solar expects total net revenues to be in the range of $340 million to $350 million, in line with its previous expectation. Moreover, the company expects gross margin to be in the range of 8% to 9%, up from 6.3% in the second quarter. This is mainly attributable to the increase in average selling price and decrease in unit cost of PV modules.
Yingli Solar, as was earlier hinted, will register impairment charges of $581.3 million on long-lived assets in the third quarter due to a lower-than-expected utilization ratio of some project facilities.
One of the world’s leading solar panel manufacturers, the company has been struggling to survive amid a pile of debt. Importantly, Yingli Solar has failed to generate profits since 2011. In this scenario, the company may find it difficult, if not impossible, to pay down its outstanding debt. This can lead to cross-defaults, putting it at liquidation risk.
Though Yingli Solar has made some progress on the debt front, with outstanding debt at the end of the second quarter declining to $332.9 million from $460.7 million as of Dec 31, 2014, it is still substantially indebted. The situation is further exacerbated by the company’s inability to report in the green for the past few quarters. Yingli Solar has recently paid back $110 million "from the liquidation of idle land and demolition of facilities," but it has little ability of remaining competitive in the long run. Moreover, the pressure on margins is definitely a concern.
Zacks Rank
Yingli Green Energy currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the solar industry are JA Solar Holdings Co., Ltd. JASO, ReneSola Ltd. SOL and Canadian Solar Inc. CSIQ. While JA Solar and ReneSola hold a Zacks Rank #1 (strong Buy), Canadian Solar carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JA SOLAR HOLDGS (JASO): Free Stock Analysis Report CANADIAN SOLAR (CSIQ): Free Stock Analysis Report RENESOLA LT-ADR (SOL): Free Stock Analysis Report YINGLI GREEN EN (YGE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
|
|
|
Yingli Green Energy Holding Co. Ltd.
|
|
|
CODE : YGE |
ISIN : US98584B1035 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Yingli Green is based in China. Yingli Green is listed in Germany and in United States of America. Its market capitalisation is US$ 261.7 millions as of today (€ 224.0 millions). Its stock quote reached its highest recent level on May 15, 2009 at US$ 9.62, and its lowest recent point on November 30, 2012 at US$ 1.25. Yingli Green has 181 764 000 shares outstanding. |