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Canadian Solar Inc. (CSIQ - Analyst Report) won a contract to supply 91 megawatt (MW) of its CS6X photovoltaic (PV) modules to Asia-based solar power provider Soleq Solar (Thailand) Co Ltd. for solar power projects in Thailand. Financial details of the agreement were not disclosed by the companies.

Per the deal, Canadian Solar will supply its high performance CS6X modules, which carry a warranty period of 10 years on materials and workmanship and a 25-year warranty on linear power output performance. With respect to quality control inspections and testing, these modules have received key international certifications. The company has already started module deliveries and expects to complete shipments by the fourth quarter of 2013.

Canadian Solar will deliver its CS6X high output PV modules across 10 separate projects. Soleq will own and operate the solar farms while two other companies − Juwi Holding AG and Bouygues Construction − will provide engineering, procurement, and construction (“EPC”) services.

Juwi Holding AG, a German group, will provide EPC services for seven projects with a total capacity of 61 MW in the provinces of Kamphaeng Phet and Ubon Ratchathani. On the other hand, France’s Bouygues Construction will provide EPC services for three other Soleq Solar projects in the Tak and Sukhothai provinces, situated in northeastern Thailand.

Canadian Solar is a low-cost, vertically-integrated solar module producer with predominantly China-based manufacturing assets. The prospects for Canadian Solar look favorable based on a geographically-diverse customer base and improving operating efficiencies through its vertically-integrated manufacturing operation.

We believe the company’s drive towards expanding its business globally through multiple ventures will support its broad growth objectives. This Thailand supply deal supports this endeavor.

Recently, Canadian Solar entered into an EPC agreement with Grand Renewable Solar LP for the construction of a solar power plant in Ontario. This is the biggest EPC contract in the company’s history and will bring in C$310 million ($301.1 million) for the company.

Meanwhile, the latest exclusive module supply deal in Thailand has driven Canadian Solar’s shares to a new 52-week high of $12.12 on Jul 1, 2013. This new high is also the highest price in more than two years.

Like Canadian Solar, other companies in the solar space have also gained in recent times. Shares of First Solar, Inc. (FSLR - Analyst Report) climbed 3.3% to $46.31 on Jul 1 following its announcement of the commencement of construction of its 50 MW Macho Springs New Mexico solar project.

Again, ReneSola Ltd. (SOL - Analyst Report) announced that it has restarted production at a polysilicon plant − which was halted in November last year − following upgrades. The plant now has an annual production capacity of 10,000 metric tons (“MT”), and that it expects to produce 1,800 MT to 2,000 MT in the third quarter of 2013. The news pushed ReneSola shares up 9.3% on Jul 1.

The rising share prices of the solar stocks thus indicate a bullish trend in the alternative energy space so far this year. Both First Solar and ReneSola carry a Zacks Rank #3 (Hold). Stocks worth considering in the solar space include JinkoSolar Holding Co., Ltd. (JKS - Snapshot Report) with a Zacks Rank #2 (Buy).

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