LDK Solar Company, Ltd. (LDK:NYSE) is a global Chinese-based company that manufactures and sells multicrystalline wafers to manufacturers of solar cells and solar modules.
LDK Solar only began operations in 2006 and yet has managed to become the fourth largest supplier of polycrystalline wafers in the world. LDK Solar's strength lies in its significant cost advantages which may propel the company to being the world's largest supplier of silicon wafers by the end of the decade.
For the first quarter 2008 LDK Solar reported revenues of $233.4 million, up 21.1% from $192.8 million in the first quarter 2007. Net income for the first quarter 2008 was $49.8 million compared to $49.2 million for the first quarter 2007.
LDK Solar recently announced the signing of a ten-year contract with the Belgium company Photovoltech to supply multicrystalline wafers; expanding their presence in Europe. LDK Solar also recently signed a new ten-year contract to supply solar wafers to one of its key customers Canadian Solar.
LDK Solar is another example of a solid quality company whose stock has fallen out of favor due to the recent precipitous decline in the Chinese stock market and negative sentiment in the solar energy industry sector. LDK Solar's stock price has declined 56% to $33.71 as of the close on July 23rd from its fifty-two week high of $76.75. LDK Solar is in a high growth sector and well positioned in high growth markets. This is a stock that seems to offer compelling value. LDK Solar will probably provide lots of sunshine for investors in the future.
References:
http://phx.corporate-ir.net/phoenix.zhtml?c=196973&p=irol-newsArticle&ID=1143905&highlight=
Company First Quarter 2008 Results
http://phx.corporate-ir.net/phoenix.zhtml?c=196973&p=irol-newsArticle&ID=1175566&highlight=
LDK Solar Signs Ten-Year Wafer Supply Agreement With Photovoltech News Release
http://phx.corporate-ir.net/phoenix.zhtml?c=196973&p=irol-newsArticle&ID=1170445&highlight=
LDK Solar Signs Ten-Year Contract To Supply Wafers With Canadian Solar News Release
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