Yingli posts sharp fall in Q3 lossUpdated: 2013-11-13 11:13
A gate of Hainan Yingli New Energy Resources Co Ltd on May 1, 2010.[Shi Yan /Asianewsphoto]
Yingli Green Energy Holding posted a sharp fall in third-quarter loss due to robust demand from solar power plants in China and said it expects the country to account for nearly half of its shipments in the current quarter.
Lower production costs and firm solar panel prices boosted Yingli's margins in the quarter, but it was not enough to prevent a ninth consecutive quarterly loss for Yingli.
The company's US-listed shares, bid higher in the days before it reported results, fell 12 percent in morning trading. The stock has tripled this year amid a broader rally in solar stocks.
"Given the recent run up in the stock, there seems to be a bit of profit taking on these numbers," Ardour Capital Investments analyst Adam Krop said.
"They didn't really blow out the numbers like the Street expected them to," he said.
The company's third quarter revenue beat analysts' estimates by about 6 percent -- the lowest margin in four quarters.
"Given the year-to-date gain in the stock, it's becoming increasingly difficult to impress the market with upside surprises," Raymond James analyst Pavel Molchanov said.
Solar panel prices have stabilized over the past two quarters after a four-year downturn, when prices fell more than 75 percent due to rapid capacity expansion in China and a withdrawal of subsidies in Europe.
While the low prices have exacted a heavy toll on loss-making solar companies, Yingli said its third-quarter results were aided by stable prices and by innovations that have made its manufacturing cheaper and more efficient.
In contrast, smaller China-based rival Hanwha SolarOne Co Ltd posted a bigger quarterly loss as costs remained high, sending its shares down about 12 percent.