Aleo Solar AG (FRA:AS1) is a German company that manufactures high-quality solar modules. More than 60% of its revenues come from outside Germany; its other target markets are Spain and Italy. Aleo Solar announced on July 15, 2008 that it continues to grow its business and market position in Europe by signing additional contracts with European customers. Recent orders have come from Greece, France, Belgium and the Czech Republic. So far in 2008 Aleo Solar has contracts that amount to over 185 million Euros.
In February 2008 Aleo Solar also announced a joint venture with the Chinese company Sunvim Group Co., Ltd.; expanding into the huge and ever growing Chinese solar market. Together the two companies will be building a solar module production plant in China.
Revenues for the first quarter ended March 31, 2008 were 69 million Euros, up an eye-popping 85% from 37.2 million Euros for the first quarter ended March 31, 2007. Net profit for the first quarter 2008 was 3.4 million Euros, up an amazing 102% from 1.7 million Euros for the first quarter 2007. Revenues for the year ended December 31, 2007 were 252.9 million Euros, growing at a torrid rate of 83% from 138.1 million Euros for the same comparable period in 2007. Net profit for the full year 2007 was up an impressive 76% from 2006 to 9.8 million Euros from 5.6 million Euros.
Aleo Solar is an explosive growth company with excellent management and a premium product. The solar energy industry is in its infancy stage of growth. Aleo Solar is now making strategic inroads and alliances into the vast Chinese market. The Company is also rapidly expanding in Eastern Europe. On July 16th Aleo Solar's stock closed at 9.30 Euros and trades 47% below its fifty-two week high of 17.40 Euros. The stock trades on the Frankfurt stock exchange.
Aleo Solar is a great growth stock in a very dynamic growth industry. The Company trades at a price earnings multiple of 20. With revenues and net profit growing in excess of 75% for the latest full year and growing at more than 85% for the latest quarter this stock appears to be selling at a significant discount to its true value. Warming up to this stock should brighten up your investment returns in the future.
References:
http://www.aleo-solar.de/reports.html
Company 2007 Report
Company First Quarter 2008 Report
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