Jetion Solar Share Discussion Threads

[losses] 29/5/2010 22:52

Dog of the day on AIM was solar cell manufacturer Jetion Solar Holdings (JHL) which announced that operating profits fell by 32.6% to 20.3 million dollars in 2009. While annual production output rose by 48.7% o 97.1MW, revenues tanked by 29.5% to 176.8 million dollars as average selling prices plunged from 3.87 dollars in 2008 to just 1.73 dollars. Current trading is being affected by the weakness of the Euro, with the Evil Empire representing practically 100% of the company's sales. The performance for the year as a whole is expected to be largely determined by the performance of the currency. The shares crashed by 30.5p to 68p.

[davidwilkin] 29/5/2010 13:45

shight company, incompetant management, lost a fortune,i'm out....end of.
GL to all that remain, pi's shafted as per usual. I'm sticking to what i'm good/lucky at and thats oil, not stupid bloody solar bloody cells. This pile of shight has seriously damaged my wealth.

[cordwainer] 29/5/2010 01:09

In Jan they said net profits (no other kind of profits) would be significantly ahead of current $11.7M market expectations. Well, I guess £17.3M is significantly ahead. However, it was a very minimal statement, not exactly gushing.

And let's not be surprised at a HK new issue since in march one of their reasons for dual listing was 'facilitate investment by Hong Kong based investors thereby enabling easier access to the funding pools available there'.
Again, the wording could have been a lot less opaque.

[the oak tree] 28/5/2010 20:30

Got out as well today. Very surprised and sadden. Probably looking back now should of thought about the euro / european issue that unfolded recently. Put alot of trust in the trading update. Am afraid Sola companies, in general, have given investors a poor time of it. At least so far. I'll considerate on easier companies to forecast. I think that means chinese companies that trade in China. At least that way its trading in a rising market i.e. china GDP is rising.

Good luck guys.

[edmundshaw] 28/5/2010 19:11

Yup. Misled by "significantly ahead", particularly as op profits down, and the improvement was down to exchange rate benefits.

Not only that, no mention in the TS about exchange rate issues or current trading.

On reflection, the management does not now have my trust, so I shan't be returning to this share. Off my watch list - and my last post here.

I genuinely wish good luck to holders - it can come good - but not one for me now, as mangement trust is a sine qua non imo.

[cool_hand] 28/5/2010 18:06

CHRISMEZ - I agree, everything today is a mess. I feel seriously mislead by the "significantly" statement.

[jwe] 28/5/2010 18:00

CHRIS-Results WERE ahead FWIW very significantly in fact(around 50%)
As for the rest of it ...it was C@@@

[cordwainer] 28/5/2010 15:59

liyangnano: Europe = solar modules, China = solar cells

Although they say they have the cash/resources for their 2010 expansion, I suppose as and when they make a HK listing they might as well be making new issue at the same time, assuming they're going for a kind of 'Moore's Law' capacity/business expansion rather than just organic growth.

The company did 'some' currency hedging - not with vast effectiveness it seems.

[edit] The results have not made mention of the other recent European development - that governments are cutting back on subsidies to renewable energy operations/projects in the wake of austerity measures.

[edit 2] What are this bb's outlook for M&A activity in the sector over the next year or two?

[zangdook] 28/5/2010 15:56

liyangnano:

"Some 77% (2008: 76%) of our turnover is represented by sales of solar modules, which are sold mainly into Europe. The balance of our sales in both years was of solar cells and these were sold mainly into China...

...the breakdown of our sales of solar modules in 2009 was Germany 54%, Liechtenstein 27% (mainly sales via Jetion Europe, the majority of which were distributed to Germany, France and Czech Republic) USA 15%, and other new emerging markets 4%."

[liyangnano] 28/5/2010 15:51

To：cool_hand
maybe i misunderstand it, anyone can clarify it?
"Current trading adversely affected by the weakness of the Euro (almost
100% of sales solar modules were into Europe) "

[slapdash] 28/5/2010 15:41

not sure what has happened here... last trading update said things were rosy and ahead of expectations.... what occured in the last few months?????

[cordwainer] 28/5/2010 15:35

my first look of the day - not as bad as i thought

[cool_hand] 28/5/2010 14:09

liyangnano - wrong regarding 100% european business.
try reading the Preliminary Results, it's all in there.

[liyangnano] 28/5/2010 13:36

Rensolar only have 20% business with EURO, but JHL with 100% european business.

Renesola (NYSE:SOL) upgraded to Neutral from Underweight at HSBC. The stock closed yesterday at $6.00 on volume of 1,235,910 shares, below average daily volume of 2,115,001.

[cool_hand] 28/5/2010 13:34

66p on the offer now. £20,000,000 wiped off the market cap on 290,000 shares sold.

[matt123d] 28/5/2010 12:20

Not sure you can make a comparison to floatation price and also to SOLA.

JHL unfortunately floated right at the top of the previous bull market.

[cool_hand] 28/5/2010 12:11

318jazz - some have of been holding here since flotation at twice the current share price, jhl has not been a good investment unless you were fortunate enough to be a bottom feeder. even SOLA has remained above it's flotation price (apart from when it went briefly to 80p).

[318jazz] 28/5/2010 12:01

I think it depends on your personal investment time scale. I'm quite happy to buy a few more at these prices for the "green portfolio" I am building for my childrens' future benefit. Just so long as some idiot in government doesn't decide to slap a special wind ..fall tax on such investments. Nothing would suprise me when it comes to the financial expertese of those "in charge".

[jwe] 28/5/2010 11:30

Agreed
Still a buyer there at the moment.Makes you wonder what he is seeing that we are not!

[cool_hand] 28/5/2010 11:06

it is surprising the market didn't know, usually this stuff gets leaked and it's already priced in. I thought the results were delayed because they wanted to announce confirmation of HK listing at the same time. no date on that (apart from sometime second half of year) and they want to raise additional cash. you wonder why they need a cash call when there's $40,000,000 in the bank?

[chrisbrown71] 28/5/2010 10:32

Does anyone know what the following line in the income statement refers to? It appears to be the main reason that operating profit is down whilst gross profit is flat.

Other operating expenses | (7,379)