Assault on Chinese Solar Equity

11 Chinese companies listed in US have lost $7.7B in market cap since January 2011. In H1 they have made over $211M. This is after absorbing $229M loss by Suntech and $13M by Sunergy. Eliminating those two companies combined earnings were $455M.

The fact that some companies have lost earnings suggests that the group does not have the equal or artificial ability to survive the turmoil.

4 of them have announced in total $330M in share buyback programs.

The module sales translated into watts have increased by 61% for almost semi pure module sellers, Jinko, Suntech, Yingli, Trina, Hanwha, and Sunergy.
They had 34% growth of revenue with 18% gross profit margin.

Europe had a 3% growth of revenue with negative -10% in gross profit.

The overall market performance of stock prices in Chinese solar is a loss of 73%.
In comparison, Taiwan's loss is 57% and Europe 55%.

The misinformation campaign includes: accounting issues involving “Chinese” companies without naming the company, personnel changes modeled to cause fear, WTO cases against unfair practices with accusations including access to capital and being guilty of having less cost. New allegations include dumping modules produced above the cost. Company supporting such a claim, SolarWorld has lost 9% revenues, and it is losing market in US after it lost its market in Germany to companies like Trina and Yingli. In contrast, both have increased their revenue by 60% and their gross margins are 8 points higher than SolarWorld. Both are manufacturing more advanced technologically modules, with better conversion and of course at lower prices.

Chinese solar companies should be trading at high premiums to everyone in the industry. Almost all indicators suggest they will be successful to weather the conditions of over capacity. Despite of all conventional wisdom serving investor community indicating their superiority, in contrary, they continue to be devalued without any fluctuation to the upside. They trade to lose.

Even the support of the healthiest financial system in the world, Chinese Banks is considered a problem. $40B offered in credit lines by government-owned banks are called “unfair” practices since penniless banking systems of USA and Europe are unwilling to lose more money in companies, which lack operational viability.

Absurdly, In between the same set of headlines criticizing banking support for Chinese solar companies, First Solar or Sunpower does not draw any reproach while receiving billions in loan guarantees from DOE.

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