Neo So­lar shares jump on Q3 hopes thanks to ris­ing de­mand

The China Post - - LOCAL -

Shares of Neo So­lar Power Corp. ( ) moved sharply higher Thurs­day morn­ing af­ter the so­lar cell man­u­fac­turer said a day ear­lier that it is ex­pected to have a bet­ter third quar­ter on the back of ris­ing de­mand and prod­uct prices, deal­ers said.

The stock also wit­nessed strong buy­ing emerge soon af­ter the lo­cal bourse opened as in­vestors took cues of the com­pany’s plan that a sub­sidiary will launch a list­ing on the Hong Kong stock ex­change, the deal­ers said.

Buy­ing spread to other so­lar energy stocks in the lo­cal eq­uity mar­ket due to their rel­a­tively small mar­ket cap­i­tal­iza­tion at a time when large-cap stocks here re­mained slow, which prompted in­vestors to move their funds to smaller is­sues, the deal­ers added.

As of 11:15 a.m., shares of Neo So­lar had risen 4.50 per­cent to NT$24.40 (US$0.78), with 14.96 mil­lion shares chang­ing hands on the Tai­wan Stock Ex­change. The weighted in­dex on the main board was up 0.28 per­cent to 9,215.82 points.

Among other gain­ing so­lar panel stocks, shares of Motech In­dus­tries Inc. ( ) had risen 4.63 per­cent to NT$36.15 and shares of Giga So­lar Ma­te­ri­als Corp. ( ) had added 1.09 per­cent to NT$554.00.

“While the broader mar­ket moved in a nar­row range, in­vestors tended to seek tar­gets with pos­i­tive leads, like Neo So­lar, to park their funds,” KGI Se­cu­ri­ties an­a­lyst Phil Chu said. “The com­pany’s up­beat as­sess­ment to­ward the July-Septem­ber pe­riod sim­ply trig­gered the buy­ing.”

In an an­nual gen­eral meet­ing held a day ear­lier, Neo So­lar Chair­man Quincy Lin ( ) told the press that the global so­lar energy sec­tor is ex­pected to climb out of the cur­rent slow­down start­ing from the third quar­ter as there have been signs that de­mand is pick­ing up to push pro­duc­tion higher.

So­lar Bat­ter­ies Re­bound in

Early June

Lin’s forecast echoed a re­search re­port re­leased by Taipei-based mar­ket ad­vi­sory firm TrendForce Corp. ( ) that said prices of high-ef­fi­ciency multi-sil­i­con so­lar bat­ter­ies have started to sta­bi­lize from the mid­dle of May and staged a re­bound in early June. The re­port said that with a peak sea­son ap­proach­ing, mo­men­tum of the so­lar cell mar­ket has been pick­ing up.

“Neo So­lar’s May sales re­port was also ev­i­dence of the mar­ket re­cov­ery,” Chu said. Ac­cord­ing to Neo So­lar, its May sales to­taled NT$1.62 bil­lion, up 4.28 per­cent from a month ear­lier.

Chu said that the cur­rent buy­ing was also trig­gered by a plan that Neo So­lar will take its sub­sidiary, Yield Co., public in Hong Kong in the fourth quar­ter of this year at the ear­li­est. Ac­cord­ing to a Neo So­lar es­ti­mate, af­ter the Hong Kong list­ing, mar­ket cap­i­tal­iza­tion of Yield Co. could hit US$550 mil­lion.

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