JA Solar (JASO) shares are trading lower today after Collins Stewart solar analyst Daniel Ries trimmed estimates for the company, citing both currency factors and the unfortunate impact of its entanglement with the Lehman bankruptcy.
Ries cut his 2008 EPS estimate to 85 cents from 90 cents; for 2009 he goes to $1.33, from $1.76. He also cut his ‘09 revenue estimate to $1.867 billion from $2.026 billion. And he cut his price target on the shares to $10 from $25.
Ries notes that while 80% of the company’s sales are in renminbi, its customers sell modules primarily in Europe, “so JASO’s business is still inherently ties to the Euro’s value.” He notes that the company’s customers “require solar cells to be priced low enough for their total module production cost to enable them to be competitive at Europe module price points.” And that pressures the company’s prices....MORE
*A couple recent headlines:
From Reuters: China Railway, China Railway Const fall on forex losses
From China Daily: Citic Pacific under investigation after currency loss
**From a CI post last January:
...which led to this comment:
Comment by - January 30, 2008 at 2:36 pm