Boston, MA 06/05/2014 (wallstreetpr) – It was a twin blow for the global photovoltaic module manufacturer, Yingli Green Energy Holding Company Limited (NYSE:YGE). While the U.S. has slapped anti-subsidy tariff, brokerage has reduced its price tag thereby hitting the stock close to a year low range on June 4.
U.S. Anti-Subsidy Tariff
The U.S. Department of Commerce slapped anti-subsidy tariff for the imported PV solar products and assembled in China with components procured from a third country. As a result of this, the company is regarded within the Separate Rates Group inviting preliminary anti-dumping tariff of 26.89% on some imported modules of PV solar.
The latest move will be followed by one more preliminary decision with regard to the anti-dumping on July 24. However, there will not be any final decisions on tariff, since the International Trade Commission is investigating the matter and it is expected to complete its inquiry by the end of the current year.
Impact of Anti-Dumping Tariff
Yingli Green Energy Holding Company Limited (NYSE:YGE) said that the latest decision will undoubtedly increase the American’s energy bill and reduce the available opportunities for thousands of solar jobs in the U.S. However, the company is ready to fight to defend itself along with the U.S. solar counterparts.
Management Speaks
Yingli Green Energy Holding Company Limited (NYSE:YGE)’s chairman and CEO Liansheng Miao viewed that the anti-duping tariffs are not the means to drive less expensive solar energy given the past global experience. While supporting international trade and reasonable competition, Yingli Green Energy Americas, Inc., managing director Robert Petrina said that it has cooperated throughout the investigation and was getting prepared for the anti-dumping tariff in view of the political nature.
However, it has reiterated its commitment to the solar market in the U.S. and will continue to help its customers as well as projects.
Cut Price Tag
Deutsche Bank has reportedly cut its price target on Yingli Green Energy Holding Company Limited (NYSE:YGE) shares to $6 from $8 following the U.S. government move even as the stock plunged over 40% in the current calendar year.
