Solarfun Power Holdings Co., Ltd., a Chinese based company, manufactures photovoltaic (PV) cells and PV modules in China. Although the solar energy industry at this time offers few competitive advantages amongst the large players, Solarfun Power exhibits a huge advantage: because it is a Chinese company, foreign competitors will find an unfriendly environment in China as the Chinese government will be highly protective of its' businesses making it very difficult for foreigners to enter the Chinese markets outside of joint ventures. This is significant because the China market is huge.Solarfun Power's (SOLF) annual revenue for 2007 increased by 280% to $2.4 billion from $630.9 million in 2006. Net income for 2007 increased 40% to $148 million from $105.9 million in 2006.
Chinese stock markets have declined by 50% in recent months presenting tremendous opportunities in selected securities. One such security is Solarfun Power which has declined 65% from a high of $40 to its current price of $13.84. I believe this presents an excellent buying opportunity for long term investors. Despite these rapid growth rates the shares are priced at only 23 times 2007 earnings. The shares trade on the NASDAQ as ADRs. Keep in mind that the Chinese Yuan is being gradually devalued and will ultimately be allowed to float freely against all major international currencies. When this occurs the Chinese Yuan will be one of the world's strongest currencies so you will also get the added kicker of currency appreciation when investing in Solarfun Power. The 21st Century will belong to China economically and investors need to include some solid Chinese growth companies in their portfolios. Solarfun Power is looking to energize and power China into the 21st Century, why not do the same to your portfolio by adding some Solarfun Power (SOLF) shares today.
http://investors.solarfun.com.cn
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