Back to top

Analyst Blog

A leading global manufacturer of solar photovoltaic ("PV") modules and wafers, ReneSola Ltd. (SOL - Analyst Report) has entered into an agreement with E.ON Climate & Renewables GmbH to supply 4.3 megawatts ("MW") of high-quality solar modules.

E.ON Climate & Renewables plans to use 4.3 MW of ReneSola’s 245 Watt (“W”) multicrystalline solar modules for its solar project in Sassari, Italy. The modules are expected to be delivered next year in March.

E.ON Climate & Renewables GmbH, a business unit of E.ON AG, is engaged in industrial-scale renewable activities. E.ON AG is one of the world's largest investor-owned power and gas companies. This is ReneSola’s first deal with E.ON and plans to continue its relationship with E.ON for its projects in the United States and Europe.

ReneSola’s modules have high module conversion efficiency, have the capability to withstand mechanical upload of up to 5400 Pa, easy to install and handle various applications as well as confirms with standards notified by International Electrotechnical Commission. Therefore, they are in demand worldwide.

The company continues to develop its solar technology by growing its module business, increasing global market share while expanding and strengthening its customer relationships. Moreover, it seems to be performing well in Europe. Recently, in October, ReneSola Ltd. announced that it has supplied 10 MW of its 245 W and 250 W multi crystalline solar modules to saferay GmbH for use in a new PV power plant. Saferay GmbH is a leading large-scale PV power plant installer in Germany.

One of the company’s peers, JA Solar Holdings Co. Ltd. (JASO - Analyst Report) also seems to be interested in the European continent. In August this year, JA Solar signed an agreement with A Shade Greener ("ASG") for the supply of 47 MW of high-quality, high-efficiency crystalline solar modules. A Shade Greener is a UK-based PV installer and the largest installer of free solar panels to the residential market in the United Kingdom.

ReneSola is capitalizing on its low-cost manufacturing base and technical know-how to consistently improve upon the cost competitiveness of its solar products through R&D and technological innovation. Currently, the company's primary research and development investments include improving its wafer technology and extending its advantages to modules, developing low-oxygen concentration solar wafers and producing carbon composite materials used in solar manufacturing furnaces.

However, recently, ReneSola reported adjusted loss per American Depositary Share (“ADS”) of 77 cents per share in the third quarter of 2012, missing the Zacks Consensus Estimate of a loss of 34 cents per ADS. The reported figures were way short of the year-ago quarterly loss of 25 cents per share.

Moreover, industry-wide oversupply glut leading to sharply falling Average Selling Prices, tepid module demand in Europe, and rising competition in the market remain a matter of concern for the company. The company presently retains a short-term Zacks #4 Rank (Sell). We have a long-term Neutral recommendation on the stock.

ReneSola is a leading global manufacturer of high-efficiency solar PV modules and wafers. Leveraging its proprietary technologies, economies of scale and technical expertise, ReneSola uses in-house virgin polysilicon and a vertically integrated business model to provide customers with high-quality and cost-competitive products. ReneSola solar PV modules can be found in projects ranging in size from a few kilowatts to multi-megawatts in markets around the world, including the United States, Germany, Italy, Belgium, China, Greece, Spain and Australia.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%