SAG Solarstrom May Buy Inverters in China to Offset EU Duties
S.A.G. Solarstrom AG, a German developer of solar-power plants, may buy inverters in China to offset falling margins from European anti-dumping duties that have made Chinese cells and modules more expensive.Solarstrom, which has sourced its inverters in Europe from producers including SMA Solar Technology AG, is looking at alternative suppliers including China's Sungrow Power Supply Co., Chief Executive Officer Karl Kuhlmann said today in a phone interview. The Freiburg-based company may also purchase modules in India and Korea, he said, adding that he expects a “revival” for thin-film panels.
Eoin Treacy's view
In order to connect solar panels to the electricity grid an inverter is an indispensible
piece of equipment. Therefore, related shares offer a high beta avenue for participating
in the build-out of solar capacity. Just as most solar companies crashed in
2011 and 2012, giving up their entire bull market gains, inverter companies
fell even harder. From January this year solar panel companies have turned to
outperformance and an increasing number are breaking medium-term progressions
of lower rally highs. Solar inverter companies are following suit.
German
listed SMA Solar Technology bottomed in
November near €15, ranged above €17 from February and pushed back
above the 200-day MA for the first time since 2010 in May. It has been consolidating
in the region of the 200-day MA for the last couple of weeks but a sustained
move below €21 would be required to question medium-term recovery potential.
Among
the leading solar panel producers Trina
Solar, First Solar, Canadian
Solar and JA Solar Holdings all paused
over the last few weeks in at least a partial reversion towards the mean. Sustained
moves below their respective 200-day MAs would be required to question medium-term
scope for additional upside.
LDK
Solar has returned to test the region of the 200-day MA and recovery potential
can continue to be given the benefit of the doubt provided it continues to hold
above the $1.30 area.
Hanwha
SolarOne is the result of a merger between Korean Hanwha and Chinese SolarFun.
The share broke out of an almost yearlong base in late May and continues to
consolidate in the upper region. A sustained move below the trend mean would
be required to question medium-term recovery potential. China
Sunergy and ReneSolar have broadly
similar bases but have not yet broken out.
Suntech
Power has unwound its deeply oversold condition to test the region of the
200-day MA. A break in the six-week progression of higher reaction lows would
be required to question medium-term demand dominance.