Thu, Sep 19, 2013 - Page 14 News List

Solar firm stock outshines TAIEX

SUNNY SPELL:The surge seen by solar energy shares was driven by strong demand and a report saying that the production capacity of major suppliers was almost full

Staff writer, with CNA

Solar energy stocks got a boost yesterday as hope increased that sales growth in the sector will accelerate due to solid demand, in particular from emerging markets, dealers said.

Shares of solar cell supplier Neo Solar Power Corp (新日光) rose 7 percent — the maximum daily amount — to close at NT$27.65, while solar silicon wafer makers Green Energy Technology Inc (綠能科技) and Sino-American Silicon Products Inc (SAS, 中美矽晶) gained 4.73 percent and 1.94 percent to end at NT$23.25 and NT$39.40 respectively.

MARKET FEARS

In comparison, the broader market extended its losses from Tuesday amid worries over the outcome of a two-day meeting of the US Federal Reserve’s policy committee.

Many investors also appeared reluctant to trade ahead of the upcoming four-day Mid-Autumn Festival holiday that will start today.

The TAIEX closed down 0.49 percent at 8,209.18 points.

Solar energy stocks moved higher soon after the local bourse opened as investors took cues from a local media report saying that the production capacity of major solar energy product suppliers, such as Neo Solar and Green Energy, are almost fully booked.

According to the report, Neo Solar’s capacity utilization rate has hit 100 percent, while Green Energy’s is exceeding 95 percent.

The report said that to meet the rising orders placed by foreign buyers, Taiwan’s solar energy companies will have to run their assembly lines for 24 hours a day during the holiday.

Market analysts said that solid global demand has factored heavily into the local solar energy sector’s sales data for last month and that an increase in orders is expected to push their revenues even higher this month.

DEMAND

Last month, Neo Solar recorded NT$2.11 billion in consolidated sales — a new high for the company — up 4.8 percent from July.

It was the eighth consecutive month that Neo Solar recorded a month-on-month increase in sales.

SAS’ consolidated sales for last month rose 23 percent from a month earlier to a record high of NT$2.31 billion, while Green Energy posted NT$1.13 billion in sales last month, an increase of 1.23 percent from July and of 68.2 percent from a year earlier.

Analysts said that growing demand from emerging markets is expected to continue into the fourth quarter.

This will offset reduced needs from Europe, but the solar energy market will enter a slow season next month that will go through December.

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