Solar Stocks (LDK) (TSL) (JASO) Set for Q1 Inventory Spike - IHS
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Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Solar companies are set for a robust rise in new photovoltaic installations in the first quarter, but IHS is anticipating that inventories will surge on a temporary dip in demand.
New research from IHS iSuppli suggests that days of inventory will expand by 22.9 percent for crystalline silicon modules and by 21.4 percent for thin-film modules.
The report also shows that that the industry average DOI for c-Si modules will reach 48 in the first quarter, up from 37 in the previous period.
“A major factor behind the solar inventory spike is the subsidy-driven nature of the PV market,” said Stefan de Haan, senior analyst for PV at IHS. “Feed-in tariffs in many countries decreased on January 1, reducing government incentives to install new systems in early 2011. Furthermore, demand—usually lighter toward the beginning of any year—also is being depressed by unfavorable weather conditions prevailing in key European countries."
IHS also sees that the inventory surge will be confined to the first two to three months of 2010.
Solar stocks are up on Wednesday in early market movement.
LDK Solar Co. Ltd. (NYSE: LDK) up 4.73 percent to $13.96.
Trina Solar Ltd. (NYSE: TSL) up 2.03 percent to $29.59.
JA Solar Holdings (NASDAQ: JASO) up 3.02 percent to $8.35.
JinkoSolar Holding Co. (NYSE: JKS) up 3.04 percent to $29.85.
Yingli Green Energy (NYSE: YGE) up 2.75 percent to $13.10.
New research from IHS iSuppli suggests that days of inventory will expand by 22.9 percent for crystalline silicon modules and by 21.4 percent for thin-film modules.
The report also shows that that the industry average DOI for c-Si modules will reach 48 in the first quarter, up from 37 in the previous period.
“A major factor behind the solar inventory spike is the subsidy-driven nature of the PV market,” said Stefan de Haan, senior analyst for PV at IHS. “Feed-in tariffs in many countries decreased on January 1, reducing government incentives to install new systems in early 2011. Furthermore, demand—usually lighter toward the beginning of any year—also is being depressed by unfavorable weather conditions prevailing in key European countries."
IHS also sees that the inventory surge will be confined to the first two to three months of 2010.
Solar stocks are up on Wednesday in early market movement.
LDK Solar Co. Ltd. (NYSE: LDK) up 4.73 percent to $13.96.
Trina Solar Ltd. (NYSE: TSL) up 2.03 percent to $29.59.
JA Solar Holdings (NASDAQ: JASO) up 3.02 percent to $8.35.
JinkoSolar Holding Co. (NYSE: JKS) up 3.04 percent to $29.85.
Yingli Green Energy (NYSE: YGE) up 2.75 percent to $13.10.
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