Trina Solar (NYSE:TSL), a China-based company that manufactures and sells solar modules, recently announced that it expects second quarter sales to beat prior estimates based on the continued strong global demand for solar energy. Trina Solar expects revenues for the second quarter 2008 to be between $200 million to $205 million, up from its prior forecast of $169 million to $177 million.
In addition on July 18th, Trina Solar announced that it intends to offer $120 million in senior convertible notes due 2013 and American Depository Shares ("ADSs"). The proceeds will be used to fund further expansion for manufacturing and production of solar products.
Trina Solar, founded in 1997, is a global company with customers in numerous countries such as Germany, Spain and Italy: all fast growing markets for solar energy. China, itself is the largest and fastest growing solar energy market. One of Trina Solar's key competitive advantages is its high degree of vertical integration - integrating the manufacture of different solar product components, such as ingots, wafers and solar cells, which are then used in solar module production.
Trina Solar's revenues for the first quarter ended March 31, 2008 were $120.7 million, up 19% from $101.4 million for the first quarter ended March 31, 2008. Operating income for the first quarter 2008 increased 22% to $20.2 million from $16.5 million in 2007. Revenues for the full year 2007 were $301.8 million, up an astounding 164% from $114.5 million for the same comparable period from the prior year. Operating income increased an eye-popping 141% for the full year 2007 to $31.6 million from $13.1 million in 2006.
Chinese stocks, as well as solar energy shares have seen a large decline recently and Trina Solar has been no exception as its stock price has plummeted more than 58% to $28.45 (as of the close of July 21st) from a fifty-two week high of $68.26. Trina Solar now trades at a price earnings multiple of 15 which appears to be a very attractive price considering its terrific growth record and tremendous future growth prospects. Dark clouds may be currently looming over solar energy shares, but it seems that sunny days may lie ahead for the solar energy industry and their share prices, in particularly Trina Solar.
References:
http://www.trinasolar.com/front/en/news.php?newid=74
Company Second Quarter 2008 Earnings Estimate Announcement
http://www.trinasolar.com/front/en/news.php?newid=75
Company $120 Million Convertible Senior Notes Announcement
http://www.trinasolar.com/front/en/investor_relations.htm
Company 2007 Annual Report
http://finance.google.com/finance?fstype=ii&q=NYSE:TSL
Company First Quarter 2007 & 2008 Income Statements
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