Yingli Surges After Forecasting First Profit Since 2011

  • Solar shipments were at high end of guidance in first quarter
  • Shipments increasing to Japan, wherer prices are higher

Yingli Green Energy Holding Co. rose the most in seven months after the struggling Chinese solar manufacturer said increased shipments to Japan will help it report its first quarterly profit since 2011.

Yingli’s American depositary receipts surged 25 percent to $4.60 at the close in New York, the most since Oct. 14. Each ADR is worth 10 ordinary shares.

The company, which missed payments on 1.76 billion yuan ($268 million) of notes due last month, gave no information about its liquidity in a statement Monday, issuing guidance for its first-quarter earnings report, which will be released June 14.

Yingli was the world’s biggest solar manufacturer until it was surpassed by Trina Solar Ltd. in 2014. It’s the only major solar company that hasn’t returned to profitability after a global panel glut gutted margins across the industry and sent the cost of modules plunging. The company is in talks with creditors about extending repayment on its debts and expects to have another meeting with them on June 17.

Yingli said shipments for the first three months of the year were in the range of 500 megawatts to 510 megawatts, compared with guidance for 480 megawatts to 510 megawatts. It expects to report gross margin of 18.5 percent to 20.5 percent, up from the 11.8 percent it reported for the fourth-quarter. The company didn’t give any figures for net income, saying only that it expected a positive result on the measure.

The company said the improvement was due largely because it’s shipping more panels to Japan where prices are higher than in other markets.

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