Wed, Oct 17, 2007 - Page 12 News List

Solar cell stocks surge on oil price spike

By Kevin Chen  /  STAFF REPORTER

Shares of solar cell makers rose yesterday on news of more stable material supply and surging crude oil prices, with both Motech Industries Inc (茂迪) and E-ton Solar Tech Co (益通光能) rising limit up on the local stock market.

World oil prices set fresh record prices yesterday because of fears that a Turkish incursion into Iraq to pursue Kurdish rebels could disrupt supply.

Shares of solar cell makers have become a favorite target for investors when oil prices spike. The sector has also benefited from government incentives to nurture this burgeoning industry.

Shares of Motech, the nation's largest solar cell maker rose 6.9 percent to close at NT$363.5 on the GRETAI Securities Market.

Motech has said it planed to expand annual output from 180 megawatts to 280 megawatts next year.

Shares of E-ton, the nation's second-largest solar cell maker, was supported by recent news that it had obtained steady material supply from Japan-based M. Setek Co and US-based Adema Technologies Inc.

The company said earlier that it planned to increase its output from 70 megawatts this year to 150 megawatts next year and to 1,000 megawatts by 2011, the online news outlet cnyes.com reported yesterday, without citing sources.

The stock advanced 6.9 percent to close at NT$401 on the GRETAI market.

Chen Hung-wei (陳弘韋), an analyst who covers solar stocks at IBT Securities Investment Consulting Co (台灣工銀證券投顧), said both E-ton and Sino-American Silicon Products Inc (中美晶) should fare well in the medium to longer-term given adequate material supplies.

Shares of Sino-American Silicon rose 1.4 percent to NT$322.

Chen estimated that E-ton's net profit this year would rise 38.1 percent year-on-year to NT$1.01 billion, while Sino-American Silicon's would surge 82 percent to NT$1.84 billion.

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