- Trina Solar Ltd., which makes solar wafers and related products, said Tuesday it has already sold most of its planned 2008 output.
- The company said it expects to produce 200 to 210 megawatts worth of solar modules this year. As of Tuesday, it said it had sold 100 percent of the modules it plans to build in the first half of the year, and 75 percent of its expected output for the second half.
- In the fourth quarter, Trina said it started two new solar cell production lines, processed 75 percent of solar cells in-house and began producing 220-watt multicrystalline-based solar modules.
....and polysilicon (althought without pricing information i.e. what price they paid it tells us very little)
- Solar energy company Trina Solar Ltd (TSL) said on Tuesday it has secured more than 80 percent of its silicon requirements for 2008 and 60 percent of its needs for 2009.
- Silicon is the key raw material that goes into solar cells and panels. Solar cell and module producers have been grappling with tight supplies of the material, leading to soaring prices. Silicon supplies are expected to become more ample next year as new production capacity comes online.
- Trina said it sources up to 80 percent of its silicon requirements from reclaimed silicon sources, saving it between 30 percent and 50 percent when compared with spot market prices.
It all sounds good and dandy... "up to" 80% of silicon from reclaimed sources saving 30-50% compared to spot prices (currently $400) yet gross margins struggle near 20%. (some peers doing 4-5% higher)
The good news is the in house cell production - this is the long awaited step that should be helping gross margins. We'll see if there is proof in the pudding at the next earnings report in February. This stock seems to be a soul brother of Solarfun Power (SOLF) - a company which could not get out of this way for quarters on end during 2007, until finally a brief rocket shot in the last part of the year (only to give most of that back in 2008 of course). With the low stock price in relation to earnings estimates, it is clear management with its 2 faltering quarters has lost the trust on the Street and the earnings estimates (which show a huge variance of $1.65 to $3.40) are not believed. Further, you can see how many moving parts are in this industry. Low estimate of $1.65 with high estimate over 100% higher? Ugh. Some clarity would really help this stock.
Long Trina Solar in fund and in personal account
