We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Canadian Solar (CSIQ) Sells Projects to Shenzhen Energy
Read MoreHide Full Article
Canadian Solar Inc.'s (CSIQ - Free Report) wholly owned subsidiary, CSI Solar Power (China) Inc., has closed the sale of two solar power plants in Jiangsu Province, China to Shenzhen Energy Nanjing Holding Co., Ltd., a subsidiary of Shenzhen Energy Group Co., Ltd.
Details of the Transaction
The transaction, valued at approximately $32.2 million (RMB223.48 million), was closed on Dec 30, 2016. Details of the projects and their total capacity have, however, been kept under wraps.
The company expects to account for the difference between the sales proceeds and the book value of the projects under 'Other income (expenses)' in its income statement for the fourth quarter of 2016.
Canadian Solar's Take on the Transaction
According to Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, completion of the sale of the two solar plants marks a major milestone for the company. The company continues to focus on monetizing its solar assets in China as well as other countries.
He is also optimistic on extending the company’s partnership with Shenzhen Energy for more opportunities in the future.
Scope of Alternate Energy
Regulations pertaining to pollution control are becoming increasingly stringent, making it crucial for utilities to spend more on emission control infrastructure. Meanwhile, because of their clean-burning nature, investment in the alternate energy space could prove to be profitable over the long run. In particular, solar energy, which presently contributes to only 1% of the total electricity generation in the U.S., represents ample scope of improvement in the days to come.
Naturally, the solar industry in the U.S. is booming. The solar Investment Tax Credit (“ITC”) has gone a long way in rendering the industry stability and facilitating expansion. In the last 10 years, solar has witnessed a compound annual growth rate of almost 60%, with the cost of installation dropping by over 70%.
Going forward, rising investments in the U.S. solar industry will benefit domestic solar companies like Canadian Solar, First Solar, Inc. (FSLR - Free Report) , Enphase Energy, Inc. (ENPH - Free Report) and SunPower Corporation (SPWR - Free Report) .
However, the unexpected victory of Donald Trump gave rise to uncertainties for the alternative energy industry. Instead of supporting the renewable sector with any kind of incentives, the President-elect has vowed to revive coal. This may hurt the industry and solar companies immensely.
Canadian Solar's Presence in China
Canadian Solar caters to a geographically diverse customer base spread across key markets including China. The company implements solar power development projects, primarily in conjunction with government organizations, to provide solar power generation in rural areas of China.
Asia is expected to be a big solar module import market in the near future, with China primarily driving demand. At the end of third-quarter 2016, the company’s late-stage utility-scale solar pipeline in China was 38 megawatt-peak ("MWp") and plants in operation were 218 MWp.
The company has a significant presence in China and continues to expand its operations in this growing solar energy market. The company plans to complete sales of about 134 MW of utility-scale solar power plants in China by 2016 end or early 2017.
Price Movement
Canadian Solar’s shares have dropped 56.5%, faring better than the Zacks categorized Solar industry’s 59.0% plunge. The main reason for this industry-wide downturn is the looming glut of solar panels. As solar players continue to step up production in an effort to seize a higher market share, supply of panels is outweighing its demand significantly.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Canadian Solar (CSIQ) Sells Projects to Shenzhen Energy
Canadian Solar Inc.'s (CSIQ - Free Report) wholly owned subsidiary, CSI Solar Power (China) Inc., has closed the sale of two solar power plants in Jiangsu Province, China to Shenzhen Energy Nanjing Holding Co., Ltd., a subsidiary of Shenzhen Energy Group Co., Ltd.
Details of the Transaction
The transaction, valued at approximately $32.2 million (RMB223.48 million), was closed on Dec 30, 2016. Details of the projects and their total capacity have, however, been kept under wraps.
The company expects to account for the difference between the sales proceeds and the book value of the projects under 'Other income (expenses)' in its income statement for the fourth quarter of 2016.
Canadian Solar's Take on the Transaction
According to Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, completion of the sale of the two solar plants marks a major milestone for the company. The company continues to focus on monetizing its solar assets in China as well as other countries.
He is also optimistic on extending the company’s partnership with Shenzhen Energy for more opportunities in the future.
Scope of Alternate Energy
Regulations pertaining to pollution control are becoming increasingly stringent, making it crucial for utilities to spend more on emission control infrastructure. Meanwhile, because of their clean-burning nature, investment in the alternate energy space could prove to be profitable over the long run. In particular, solar energy, which presently contributes to only 1% of the total electricity generation in the U.S., represents ample scope of improvement in the days to come.
Naturally, the solar industry in the U.S. is booming. The solar Investment Tax Credit (“ITC”) has gone a long way in rendering the industry stability and facilitating expansion. In the last 10 years, solar has witnessed a compound annual growth rate of almost 60%, with the cost of installation dropping by over 70%.
Going forward, rising investments in the U.S. solar industry will benefit domestic solar companies like Canadian Solar, First Solar, Inc. (FSLR - Free Report) , Enphase Energy, Inc. (ENPH - Free Report) and SunPower Corporation (SPWR - Free Report) .
However, the unexpected victory of Donald Trump gave rise to uncertainties for the alternative energy industry. Instead of supporting the renewable sector with any kind of incentives, the President-elect has vowed to revive coal. This may hurt the industry and solar companies immensely.
Canadian Solar's Presence in China
Canadian Solar caters to a geographically diverse customer base spread across key markets including China. The company implements solar power development projects, primarily in conjunction with government organizations, to provide solar power generation in rural areas of China.
Asia is expected to be a big solar module import market in the near future, with China primarily driving demand. At the end of third-quarter 2016, the company’s late-stage utility-scale solar pipeline in China was 38 megawatt-peak ("MWp") and plants in operation were 218 MWp.
The company has a significant presence in China and continues to expand its operations in this growing solar energy market. The company plans to complete sales of about 134 MW of utility-scale solar power plants in China by 2016 end or early 2017.
Price Movement
Canadian Solar’s shares have dropped 56.5%, faring better than the Zacks categorized Solar industry’s 59.0% plunge. The main reason for this industry-wide downturn is the looming glut of solar panels. As solar players continue to step up production in an effort to seize a higher market share, supply of panels is outweighing its demand significantly.
Zacks Rank
Canadian Solar currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>