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Canadian Solar (CSIQ) to Sell Funing County Power Projects

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Canadian Solar Inc.’s (CSIQ - Free Report) wholly-owned subsidiary, CSI Solar Power (China) Inc. has signed a project sale agreement with Create Technology & Science Co., Ltd., a state-owned company in China.

Under the agreement, Canadian Solar will sell its operating solar projects in Funing County, Jiangsu Province, China. The sale consideration is expected to be worth around $32.8 million (RMB218.5 million).

This project sale agreement will come into effect once Create Technology & Science gets an approval from its board of directors and from the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

However, Canadian Solar has kept the details of the projects and their total capacity under wraps.

According to Chairman and Chief Executive Officer of Canadian Solar, Dr. Shawn Qu, the latest agreement will help the company to “continue to monetize its high quality solar power plant assets in China, recycle out capital and strengthen our balance sheet”.

Note that Create Technology & Science primarily produces specialty instruments and apparatus. The company’s products are distributed in the domestic market as well as overseas.

Canadian Solar caters to a geographically diverse customer base spread across key markets in the U.S., Canada and Europe, as well as emerging markets in South Korea, Singapore and Brazil. The company has shipped more than 14 gigawatts (“GW”) of finest quality modules in over 90 countries throughout the globe in the last 14 years.

Asia is expected to be a big solar market in the near future, with Japan, India and China primarily driving demand. Asia contributed 44.4% to Canadian Solar’s net revenue in the first quarter of 2016, up significantly from 32.9% in the year-ago quarter.

The company currently has a Zacks Rank #2 (Buy).

Other Stocks to Consider

Some other favorably placed stocks in the solar industry include Yingli Green Energy Holding Co. Ltd. , ReneSola Ltd (SOL - Free Report) and 8point3 Energy Partners LP , each sporting a Zacks Rank #1 (Strong Buy).

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