Solar products manufacturer Yingli Green Energy
Let's take a closer look.
A look at the quarter
Revenue surged 63% in the quarter, to $680.6 million from around $418 million in the year-ago quarter, as shipments of its photovoltaic module increased significantly. By expanding into new markets and increasing its customer base, the company has been able to counter the fall in solar products' average selling prices.
However, operating income fell to $81.4 million in the quarter, from around $88 million last year, as subsidy cuts in key markets like Germany and Italy pulled down the prices of solar products. The company is pressing toward increasing its presence in new markets and also expanding its global market share, and these factors will probably propel it to improve its margins in the future.
Yingli has an impressive cash position of $1.09 billion; this will be important as the company looks to develop its base in newer territories. While most of the players in the industry have been piling up inventories due to weak demand, Yingli's inventory has gone down by 15% on a sequential-quarter basis. In comparison, peer JA Solar
The gloom in the industry has tainted the financials of various companies, SunPower
Another positive point about Yingli is that it expects its shipments to increase by some 60% to 65% compared to the previous fiscal year, while others in the industry have downgraded their guidance.
The Foolish bottom line
Yingli has emerged as a stable performer in an industry experiencing weakness. The company is striving toward growth by expanding its production capabilities and making its presence felt globally, along with maintaining its position in the Chinese market, which is touted to become one of the biggest markets for solar products. That all sounds good.
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