Chinese Solar Manufacturers

Past entries discussing solar energy have featured domestic companies, but there is a very large market for solar energy in Asia, particularly China. Numerous manufacturers base their operations in China, such as Yingli Solar, Solarfun, and Suntech Power. There are a few successful Chinese solar companies, but there are many small somewhat unknown firms as well.

Suntech Power had a very successful IPO in 2005, the stock was trading near $100 at the start of the year but is currently below $10. Solarfun is also down over 50% since its IPO in December 2006. Many Chinese solar companies look for a big debut through an IPO, much like during the internet stock boom of the late 1990s. Currently, solar companies abroad and domestic have been struggling due to the economic problems and decrease in oil prices.

As attractive as some of these companies may seem at the current discount, the Chinese solar industry is a speculative investment at this time. Many of the companies are largely unknown to US investors, and it’s difficult to assess the financial strength of the firms. The companies do have financial statements and data on sites like Google Finance and Yahoo! Finance, but the coverage on domestic companies by financial analysts is much more detailed. There are currently a few solar companies in China that will more than likely be successful, but the current financial turmoil makes it too early to tell.