Neo Solar Q3 profit surged 39% amid strong demand

SOLAR PLAYS::Solar wafer maker Green Technology and photovoltaic conductive paste maker Giga Solar Materials both posted record revenues last month

By Lisa Wang  /  Staff reporter

Thu, Nov 07, 2013 - Page 14

Solar cell maker Neo Solar Power Corp (新日光) yesterday said that third-quarter net profit soared almost 39 percent from the previous quarter, as strong demand lifted prices and shipments.

Net profit jumped to NT$465 million (US$15.77 million), or NT$0.74 per share, from NT$335 million, or NT$0.64 per share, in the second quarter, a company statement showed.

That is the second profitable quarter for the firm.

Gross margin improved to 14.14 percent last quarter, from 11.21 percent in the second quarter.

Factory utilization was 100 percent last quarter, and revenue rose 57 percent to NT$6.39 billion from NT$4.08 billion in the previous quarter, the statement said.

“The solar industry has bottomed out, as supply and demand are reaching parity,” Neo Solar said in the statement. “The industry will grow stably.”

The company said several research firms have expected global solar installation to grow to more than 40 gigawatts next year and to 50 gigawatts in 2015.

In the first nine months of the year, Neo Solar made NT$200 million in net income, or NT$0.38 a share, on revenue of NT$13.06 billion.

The firm lost NT$2.75 billion in the same period last year amid overcapacity.

The company yesterday said its subsidiary General Energy Solutions (永旺能源) had completed the solar system installation of 1.28 megawatts at an airport in Indiana and expected the project would help boost its revenue and profit in the future.

In other news, Green Energy Technology Inc (綠能科技), the nation’s biggest solar wafer manufacturer, also posted its best monthly revenue last month.

Green Energy said in a statement that revenue grew 7.7 percent to NT$1.24 billion from NT$1.16 billion in September. That was an 86 percent rise from NT$667 million a year ago.

Giga Solar Materials Corp (碩禾電子), a photovoltaic conductive paste maker, on Tuesday reported that revenue rose to a record-high of NT$449 million last month, up 10 percent from NT$408 million in September and 74 percent higher than the NT$259 million it posted a year ago.