Shares of solar cell maker DelSolar Co Ltd (旺能光電) shot up 56.46 percent during its debut on the main bourse yesterday, after the company offered a positive outlook this year on recovering demand.
DelSolar shares rocketed to NT$23 yesterday, from the listing price of NT$14.7, while the TAIEX fell 0.93 percent on renewed concern over the eurozone debt crisis.
Last year, DelSolar, which is 60 percent owned by local power management unit maker Delta Electronics Inc (台達電), lost NT$2.54 billion (US$86.5 million) as oversupply sent prices plummeting when the debt crisis in Europe cut demand.
“The worst is over. The company’s operations will improve gradually,” DelSolar chairman R.C. Liang (粱榮昌) told reporters.
After booking NT$1 billion in losses stemming from falling silicon wafer prices based on two silicon wafer supply contracts, DelSolar president Lidon Chen (陳立惇) said the company “aims to return to profit for the full year. We believe we have a good chance” of reaching the goal.
Market researcher TrendForce Corp (集邦科技) said yesterday recovering demand gave support to the share price.
Solar cell prices were unchanged week-on-week at US$0.462 per watt, ending a prolonged decline.
TrendForce said the solar cell business looks stable as manufacturers have received orders for next month, although concerns about Germany’s plan to trim subsidies on solar panel installations could dampen the recovery in the second half, it said.
DelSolar said sales fell 11.6 percent to NT$489 million last month, from March’s NT$564 million, according to a company filing to the Taiwan Stock Exchange on Monday.
That was a 40.5 percent decline from NT$838 million in the same period last year.
DelSolar reported a net loss of NT$483 million in the first quarter, reversing a net profit of NT$7.98 million, or earnings per share of NT$0.03, the previous year.