Suntech Power Hldgs (NYSE: STP), a Chinese solar energy company that manufactures and sells solar cells and modules, announced on July 29th, 2008 the signing of a two-year agreement with Italy's largest power company Enel SpA to supply solar modules through 2009. The positive news sent Suntech Power shares soaring 5.93%, up $1.94 for the day, to close at $34.65.
Suntech Power is a global leader in solar energy as measured by both its production output and the capacity of its solar cells and modules. Suntech has customers and offices worldwide and a strong foothold in its home based nation of China: a booming and lucrative market for solar energy power.
Suntech Power is a global leader in solar energy as measured by both its production output and the capacity of its solar cells and modules. Suntech has customers and offices worldwide and a strong foothold in its home based nation of China: a booming and lucrative market for solar energy power.
Suntech Power recently completed, with Hoku Solar, a 254-kilowatt PV solar power system in Hawaii for Paradise Beverages, Inc. This has been the third such project completed with Hoku Solar for Paradise Beverages. Due to its abundance of sunlight, Hawaii is ideal for solar energy. Suntech in 2008 also signed a long term silicon wafer agreement with the global German joint venture company, Wacker Schott Solar GmbH. Wacker Schott Solar has built a strong reputation worldwide for producing high quality silicon wafers.
Suntech Power revenues for the first quarter of 2008 were $435 million, up an eye-popping 76% from $247.2 million for the first quarter 2007. Net income for the first quarter 2008 was $55.8 million, an increase of 113.8% from $26.4 million in the first quarter 2007. Revenues for the full year 2007 were $1.35 billion, a tremendous increase of 125% from $598.9 million in 2006. Net income for the full year 2007 was $171.3 million, up an impressive 61.6% from $106 million in 2006.
Suntech Power revenues for the first quarter of 2008 were $435 million, up an eye-popping 76% from $247.2 million for the first quarter 2007. Net income for the first quarter 2008 was $55.8 million, an increase of 113.8% from $26.4 million in the first quarter 2007. Revenues for the full year 2007 were $1.35 billion, a tremendous increase of 125% from $598.9 million in 2006. Net income for the full year 2007 was $171.3 million, up an impressive 61.6% from $106 million in 2006.
Suntech Power closed on July 29th, 2008 at $34.65, down 61.5% from its fifty-two week high of $90. It appears that Suntech Power's stock price offers compelling value based on its current and future expected revenue and earnings growth rates in an industry that is out of favor and poised for monstrous sustainable growth worldwide. Having Suntech Power shares in your portfolio probably will brighten up your investment returns in the near future.
References:
http://phx.corporate-ir.net/phoenix.zhtml?c=192654&p=irol-news
7/29/08 - Suntech Signs Supply Agreement with Italy's Enel
http://phx.corporate-ir.net/phoenix.zhtml?c=192654&p=irol-investorkitCompany 2007 Annual Report
User comments
LAGOS STATE ALAUSA, IKEJA.
NIGERIA.
TEL: 234-1-6599314
Dear Sir,
Having gone through your website, I am hereby please to inform you that I have directed by the Honourable Commissioner for Energy Lagos State.
I am Dr. George Adams, Special Assistant to the Commissioner of Science & Technology (Kadiri Hamza).
We are interested in embarking on a rural electrification of the Ajagunle Suburb of the state which is one of the 19 villages earmarked for the Lagos State Pilot Solar Energy Project, which is a project aimed at providing solar energy system as a source of power generation to some rural villages.
You can read more about our program on this website, http://ipsnews.net/africa/nota.asp?idnew s=34249
We are employing the grid and off-grid renewable options.
The government of Lagos state decided to use this solar power as an alternative power source because it will cost about 150 million naira (around 1.2 million dollars) to connect each village to the national grid, while the solar energy project costs only about 10 million naira (around 83,000 dollars) per village, which will be a huge revenue reserve for us.
Lagos state government decided not to use local contractors to ensure a quality and timely execution of this project as we have had some bitter experience with some local contractors here and which we do not want to repeat same mistake, this is why we decided to make use of foreign firms and your firm was graciously recommended to us.
If you are interested in this contract, you are expected to respond to this mail, to enable me give you further information on the process of submission of your Expression of Interest and other important informationâs you need to know about this contract.
Thanks,
Dr. Adams,
S.A (Lagos state commissioner for Energy).
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