GCL-Poly Energy 3800

[winston]

MARKET TALK: GCL-Poly Tumbles 8.4%; MS Unloads

Source: Dow Jones Newswire

[Atlas]

Tried to short it this morning, even before I knew the MS news, but my broker (IB) kept telling me that there are no stocks available for shorting. Not only this counter but also 0813, 0658, etc... Now I see that those stocks had indeed a sizeable short volume. What did I do wrong ? I ended up shorting 0883 but that was rather lame...

[winston]

not vested

DJ MARKET TALK: Citi cuts GCL-Poly Energy To Sell From Neutral

1127 [Dow Jones] STOCK CALL: Citigroup cuts GCL-Poly Energy (3800.HK) to Sell from Neutral, and lowers its target price to HK$2.20 vs HK$2.40, given earnings uncertainty and rising order uncertainty from its customers.

It says that GCL-Poly reported weak 2H11 earnings, missing FY11 consensus by 18% after sharp polysilicon price drop;

It adds, GCL-Poly is leveraging its cost advantage and its balance sheet to support key customers, as it tries to maintain high utilization rates.

"We expect GCL-Poly to face more pressure on polysilicon prices in 2012, which will cap earnings upside as sector margin contracts."

The stock falls 4.8% to HK$2.38.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: GCL-Poly Remains Weak; DB Stays Cautious On Sector

1052 [Dow Jones] GCL-Poly Energy (3800.HK) is down 2.4% at HK$1.62 on top Friday's 7.8% tumble, due to news of the U.S. government's preliminary ruling to impose antidumping tariffs of about 31% on Chinese panel makers.

Deutsche Bank believes the U.S. decision increases the risk of regulatory uncertainty and raises the possibility of a trade war; it says although GCL-Poly is not directly involved in this anti-dumping case, "it is unlikely to be immune from the sector headwinds."

The house adds, the likely delay in subsidy cuts in Germany and Italy may lead to better demand but it believes oversupply is likely to remain and "we do not see any sign of a pricing rebound in the near term," hence it stays cautious on GCL-Poly and the sector.

Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: HSBC Cuts GCL-Poly Target To HK$1.40 Vs HK$2.07

1430 [Dow Jones] STOCK CALL: HSBC cuts GCL-Poly Energy (3800.HK) target price to HK$1.40 from HK$2.07 and keeps the stock at Underweight.

It says the firm's utilisation in 1Q12 was only 75% as opposed to about 100% in previous periods; "we see this as a strong signal of demand weakening; especially given GCL-Poly was already selling at about 8% below spot.

It also adds to increasing inventory concerns."

HSBC notes U.S. has announced anti-dumping duties of 31% on Chinese cells and modules sold into the U.S.; it believes the impact of the preliminary ruling on GCL-Poly is negative in the near term but longer term lost sales could be quickly offset by rising domestic Chinese solar PV installations.

It adds, the EU may launch a similar investigation on the Chinese solar companies which would be a greater concern given the larger European market size.

GCL-Poly is down 1.8% at HK$1.63, adding to its 7.8% fall Friday.


Source: Dow Jones Newswire

[winston]

not vested

DJ MARKET TALK: Macq Cuts GCL-Poly To Underperform Vs Outperform

0927 [Dow Jones] STOCK CALL: Macquarie cuts GCL-Poly Energy (3800.HK) to Underperform from Outperform, and slashes its target price to HK$1.30 from HK$3.00.

The house cuts its EPS estimates by 70%-100% for FY12-14, and they are now 50% below Bloomberg consensus, as Macquarie's global solar research team downgraded its polysilicon/wafer price forecast by around 15% for 2012-14 based on current spot prices (US$23/kg) and persistent oversupply.

It says GCL-Poly is "losing money in almost all scenarios," as it finds that even in the bull case of production and shipments at full capacity, GCL would barely breakeven; the company would be loss-making in the base and bear cases.


Source: Dow Jones Newswire

[winston]

GCL-POLY ENERGY (03800) target cut to $1.2 by Citi on rising production cost

Citigroup reported on GCL-POLY ENERGY (03800) saying that the Company has been adapting a new business model, as solar profitability shifts from equipment manufacturing to system installs.

The recently signed contract with quanta will help enhance the engineering and procurement operations in the United States, and will be the focus for future earnings growth.

However, the Bank worried about the weakness in the prices of polysilicon and silicon, which may drag down earnings. The reliance of earnings growth on investment in solar farms will bring uncertainties. It cut the 2012/13/14 earnings forecast by 30%/33%/26% to reflect the rising cost of production, and expected reduced earnings from the sale of solar farms.

The target is reduced 29% to $1.2, with rating remained at Sell.


Source: AAStocks Financial News

[winston]

Solar business not looking so bright for GCL by Grace Cao

China's largest polysilicon supplier, GCL Poly Energy Holdings (3800), yesterday warned it would post its first interim loss in two years, due to a business slowdown brought on by the euro zone debt crisis.

The firm expects to be HK$330 million in the red during the January-to-June period.

This compares with a net profit of HK$3.55 billion earned in the same period last year, when it expanded capacity by 70 percent , to cater to strong demand at that time.

From January, the global market for polysilicon has been oversupplied, and GCL average sales prices tumbled 58 percent in the first quarter.

Spot price of the key material in solar panels has fallen 22 percent so far this year, Bloomberg data show.


Source: The Standard HK

The company said production costs will fall in the near future.

[winston]

not vested

GCL-POLY ENERGY (03800.HK) maintained at Sell with target $1.1 - Citi

Citigroup noted in a report that GCL-POLY ENERGY (03800.HK)'s reduction in polysilicon sales and output resulted in the poor gross profit in the third quarter.

The bank maintained the Sell rating with target $1.1.


Source: AAStocks Financial News

[winston]

not vested

GCL-POLY ENERGY (03800.HK) maintained Hold by Deutsche on limited downside
Sep 25, 2012

There is limited downside to GCL-POLY ENERGY (03800.HK)'s spot price, said Deutsche Bank, who maintained GCL-POLY ENERGY at Hold and lowered the target price to $1.3.

Deutsche Bank deems the average selling price of silicon plates may be further reduced for inventory clearing, despite a limited downside.

It pointed out although the average selling prices of polysilicon and silicon continued to fall, the pace of falling slowed down.

GCL-POLY ENERGY is now putting in efforts to dispose of assets in a bid to reduce liability level and wants to sell the solar farm project, said the broker, who added the former also plans to put out a new production technique for polysilicon, which can help reduce energy consumption.

Source: AAStocks Financial News