Solar energy stocks boosted by sales hopes

September 18, 2013 by  
Filed under Green Energy News

Taipei, Sept. 18 (CNA) Local solar energy stocks got a boost Wednesday on hopes that sales growth in the sector will accelerate on solid demand, in particular from emerging markets, dealers said.

While the broader market moved in a narrow range, with many investors awaiting the outcome of a two-day U.S. Federal Reserve policymaking meeting due later in the day, small-cap stocks with positive leads, like solar energy firms, attracted buying throughout the session, the dealers said.

Shares of solar cell supplier Neo Solar Power Corp. rose 7 percent, the maximum daily increase, to close at NT$27.65 (US$0.93), while solar silicon wafer makers Green Energy Technology Inc. and Sino-American Silicon Products Inc. gained 4.73 percent and 1.94 percent, respectively, to end at NT$23.25 and NT$39.40.

The weighted index on the Taiwan Stock Exchange closed down 0.49 percent at 8,209.18 points.

The solar energy stocks moved higher soon after the local bourse opened as investors took cues from a local media report that said production capacity of major solar energy product suppliers, such as Neo Solar and Green Energy, is almost fully booked.

According to the report, the capacity utilization rate of Neo Solar has hit 100 percent, while Green Energy’s exceeds 95 percent.

The report said that to meet the rising orders placed by foreign buyers, local solar energy companies will have to run their assembly lines for 24 hours per day during the upcoming four-day Mid-Autumn Festival holiday.

Market analysts said that solid global demand has been factored into the local solar energy sector’s August sales data and that an increase in orders is expected to push their revenues even higher in September.

In August, Neo Solar posted NT$2.11 billion in consolidated sales, a new high, up 4.8 percent from July. It was the eighth consecutive month for Neo Solar to record a month-on-month increase in sales.

Sino-American Silicon’s consolidated sales for August rose 23 percent from a month earlier to a record high of NT$2.31 billion, while Green Energy posted NT$1.13 billion in sales in August, up 1.23 percent from July and up 68.2 percent from a year earlier.

Analysts said that an increase in demand from emerging markets is expected to continue into the fourth quarter to offset reduced needs from Europe and that the solar energy market will enter a slow season during the October-December period.

(By Han Ting-ting and Frances Huang)

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