Cowen’s Stone Maintains Neutral Rating on China Sunergy (Nasdaq:CSUN) – Comments on Q1 Results
Source: http://feedproxy.google.com/~r/smallcappulse/feed/~3/rRdjQRNbDN0/Posted on Friday, May 29th, 2009 | In Market Commentary, Small & Micro Cap
May 28, 2009 ndash; Analyst Comments ndash; Cowenrsquo;s Rob Stone maintained a NEUTRAL rating on China Sunergy (Nasdaq:CSUN) on the heels of the companyrsquo;s Q1 financial results announcement. He focused on falling wafer costs and higher volume which should drive a return to profit in the second half of the year, but noted that he remains cautious based on limited visibility.
CSUNrsquo;s Results
China Sunergy (Nasdaq:CSUN) reported a 52% Y/Y decline in Q1 revenue to $37 million, and a loss of $15.9 million, or $0.40 per share, compared with earnings of $545 thousand, or $0.01 for the same period last year. Management maintained FY09 shipment guidance of between 150MW to 200MW. For the second half of the year, it expects gross margins between 15% to 20%.
Stonersquo;s Takeaways
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Shipments beat estimates (23.9MW vs. 21MW)
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Increased 2009E loss/ADS to $0.42 (vs. $0.25) and raised 2010E earnings per ADS by $0.02 to $0.28, slightly raising 2009E revenue to $215 million (vs. $212 million) on higher shipments of 157MW (vs. 134MW) and lower ASP of $1.47 (vs. $1.76); cut 2010E revenue by $25 million to $260 million on higher shipments of 226MW (vs. 215MW) and lower ASP of $1.27 (vs. $1.53).
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Expects GM of about 2% in Q1 and 19% in the second half
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Maintains NEUTRAL rating
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