Solar Stocks Rise on First Solar’s Forecast: Hong Kong MoverBloomberg News
Asian solar companies rose, led by Solargiga Energy Holdings Ltd. and GCL-Poly Energy Holdings Ltd., after First Solar Inc.’s earnings forecast beats expectations.
Solargiga rose 6 percent to HK$0.375 at 11:54 a.m. in Hong Kong after earlier climbing as much as 13 percent, the most intraday since Jan. 9. GCL-Poly, the biggest maker of polysilicon used in solar panels, rose as much as 10 percent. Motech Industries Inc., Taiwan’s biggest solar-cell producer, and Japan’s Tokuyama Corp. gained 3 percent.
First Solar, the world’s largest thin-film solar manufacturer by output, surged 46 percent yesterday, the most on record, after forecasting sales of $3.8 billion to $4 billion this year. Earnings will be $4 to $4.50 a share, exceeding the $3.57 average of 23 analysts’ estimates compiled by Bloomberg.
Investors seem to have underestimated some solar companies’ earnings, Lian Rui, a Beijing-based analyst at research company NPD Solarbuzz, said by phone today. “Solar-component prices may rise this year.”
A portion of First Solar’s sales this year will come from the 550-megawatt Desert Sunlight solar farm the company is building in Southern California, according to a statement yesterday.
— With assistance by Feifei Shen