Auriga Maintains a 'Hold' on Yingli Green Energy (YGE); Updating Estimates; Lowering PT
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Price: $1.43 --0%
Rating Summary:
2 Buy, 11 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 11 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga maintains a 'Hold' on Yingli Green Energy (NYSE: YGE) price target cut from $5.00 to $3.50.
Auriga analyst says, "Yingli Green lowers 4Q11 shipment estimates and GM guidance. 4Q11 Shipments: Yingli Green updated its 4Q11 module shipments guidance after the market close yesterday to ~30% decline (~355MWp) compared to a low to mid-20s decline (~390MWp) previously. 4Q11 Goss Margins + Inventory Related Charges: Gross margin guidance was lowered to ~3% (inclusive of inventory write-offs) from ~10% earlier. We estimate inventory write-offs at ~$20M. In addition, the company noted that it is taking ~$135M charge on its inventory purchase commitment under long-term supply contracts in view of sharp decline in the polysilicon price. Net of all charges GM for the quarter tracks -32.5%."
"The company's polysilicon plant has become a white elephant that is set to ramp in 2012 with cost set at $45/kg for 1Q12 and $35/kg for 2H12 compared to current spot polysilicon prices at ~$30/Kg. Given high cost structure and capacity (3,000MT) that is not optimized for scale, we believe Yingli will likely exit from its polysilicon business in 2012."
For an analyst ratings summary and ratings history on Yingli Green Energy click here. For more ratings news on Yingli Green Energy click here.
Shares of Yingli Green Energy closed at $4.81 yesterday.
Auriga analyst says, "Yingli Green lowers 4Q11 shipment estimates and GM guidance. 4Q11 Shipments: Yingli Green updated its 4Q11 module shipments guidance after the market close yesterday to ~30% decline (~355MWp) compared to a low to mid-20s decline (~390MWp) previously. 4Q11 Goss Margins + Inventory Related Charges: Gross margin guidance was lowered to ~3% (inclusive of inventory write-offs) from ~10% earlier. We estimate inventory write-offs at ~$20M. In addition, the company noted that it is taking ~$135M charge on its inventory purchase commitment under long-term supply contracts in view of sharp decline in the polysilicon price. Net of all charges GM for the quarter tracks -32.5%."
"The company's polysilicon plant has become a white elephant that is set to ramp in 2012 with cost set at $45/kg for 1Q12 and $35/kg for 2H12 compared to current spot polysilicon prices at ~$30/Kg. Given high cost structure and capacity (3,000MT) that is not optimized for scale, we believe Yingli will likely exit from its polysilicon business in 2012."
For an analyst ratings summary and ratings history on Yingli Green Energy click here. For more ratings news on Yingli Green Energy click here.
Shares of Yingli Green Energy closed at $4.81 yesterday.
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