Boston, MA 03/13/2014 (wallstreetpr) – Hanwha Solarone Co Ltd (NASDAQ:HSOL) is chasing a bull run as the China based solar photovoltaic cells and panels manufacturer reported narrowed loss for the quarter and projects strong sales in the coming times.
Review Of Fourth Quarter Earnings
The key takeaway from the company’s discussion of its fourth quarter results is its efficiency to bring down the net loss substantially from $1.27 per American Depositary Share (ADS) on a net loss of $107.6 million to 4 cents per ADS this time on a net loss of $3.6 million. Its net revenue surged by over 60% to 213.9 million year-over-year.
The less-than-expected net loss points out to the steady recovery in the sector. During the fourth quarter, Hanwha Solarone was able to post a positive gross margin to the tune of 14.1% due to increased panel prices supplemented with its ability to reduce costs. Gross margins were in negative territory last year at 31.1%. During the said period, panel shipments grew 77% to 352.2 megawatts (MW). But, the company expects shipments in the first quarter to remain the same as that of the fourth quarter on account of seasonal weakness currently present in China and North America.
Positive Future Shipments
The stock prices jumped more on account of the company’s note that it anticipates shipments to increase this year in light of escalating demand in its largest market Japan and China. Japan’s move to subsidize solar power along with China’s move to concentrate on solar power generation together highlights that the recovery is soon on its way for this struggling sector.
It is to be noted that for the last four years, Chinese solar companies have been badly hit by excessive manufacturing capacities coupled with the withdrawal of subsidies in their chief European markets, forcing them to either shut or tone down their operations. But, in the past few days, reports of a surge in solar panel demands from all the corners is signalling to the good times of these solar companies.
In line with what is projected by its rivals like Trina Solar and Yingli Green Energy, Hanwha SolarOne too anticipates to ship 1.5-1.6 gigawatts of panels this year, which is up from the 1.3 gigawatts it shipped in the year 2013. In addition to this, gross margins are also seen to be positive this year, and is expected to range in between 15-20%, according to the company.
