Jetion Solar Share Discussion Threads

[cordwainer] 11/6/2010 18:14

zangdook - one of those twitchy shareholders is apparently Gabriel Kow's wife

[get rich quick] 07/6/2010 16:41

the share price keeps rising even though we have nothing but sells. Is there another buyer in the wings. level 2 anyone

[zangdook] 06/6/2010 09:16

It did rise a tad when they announced the plan to list in HK. I think the problem is more one of nerves and over-reaction among investors. If this board is anything to go by, JHL has some very twitchy shareholders.

[cool_hand] 05/6/2010 18:53

Gabriel Kow blames AIM for the low share price. Jetion thought they could just sit back, take the money and watch the share price rise. The problem is they've done nothing in terms of investor relations, their PR, their communications have been poor and lacking. You have to instill confidence, they've manged to do the opposite on more than one occasion. They just don't get it.

[robmal] 04/6/2010 20:33

Jetion hopes to catch light in Asia listing
============================================

By Philip Stafford

Published: June 4 2010 01:48 | Last updated: June 4 2010 01:48

The planned listing in Asia of Jetion Solar Holdings throws up a potentially awkward issue for London's junior market.

Gabriel Kow, the group's chairman, had some forthright words about Aim, and Jetion's performance, at the solar cell maker's full-year results last week.

Talking about the group's plans for a second listing in Hong Kong, he expressed his frustration with the London quote.

"We were only trading at two-times a price-earnings ratio," he said. "On Nasdaq it would be worth 15 times. We hope the Hong Kong market will give us a better price. We believe there is a better appreciation of solar in Hong Kong.

"This is a conservatively managed business. There is generally a negative perception of Chinese companies."

Mr Kow's concerns are worth examining.

Jetion came to Aim three years ago, looking to London to raise funds as it lacked the track record it needed to list on other indices.

It placed 25m shares to raise £30.5m via its then-nominated adviser Collins Stewart, and the listing price of 151p gave it a market capitalisation of £112.1m.

The intention was to tap into the potential of the global solar power industry to build a leading company in the sector. For a while it appeared to be making good on its targets.

In 2008, it was ranked second in the prestigious "Deloitte Technology Fast 500 Asia-Pacific" list, which charts the fastest growing companies in the region.

Suffice to say, it has not quite worked out that way so far.

Jetion's results last week showed turnover for the year fell 29.5 per cent to $176.8m (€144.8m, £120.5m) from $250.9m, although pre-tax profit rose 6 per cent to $21.3m.

An accompanying warning that full-year profitability was largely dependent on euro strength knocked nearly 30 per cent off the equity value of the company. The shares, which once traded as high as 172p, closed on Thursday at 76½p.

However, Jetion's problems were inexorably tied with the photovoltaic industry, which had an awful 2009. Module prices slumped 40 per cent as overcapacity plagued the sector while global economic contraction slowed demand for renewable energy.

The industry oversupply largely came about as Spain reduced the generous feed-in tariffs and implemented annual installation caps.

According to Solarbuzz, the US photovoltaic consultancy, the market expanded by just 6 per cent compared with the 110 per cent growth the year before.

But recent signs from the industry have indicated demand returning. Jetion had increased solar module production capacity from 60MW to 75MW during the year and will more than double that total again as it looks to meet increasing demand in China.

However, it is a little difficult to have sympathy over the issue of valuation, which is a difficult calculation in a developing, often loss-making, industry.

Its shares trade on an undemanding 0.5 times sales, which accurately reflects its exposure to adverse currency effects as its costs are in renminbi while its sales are almost exclusively in euros.

And indeed, Jetion's valuation has halved. But it's no worse than the performance of rival PV Crystalox Solar. The UK's largest maker of photovoltaic silicon wafers happened to list on the main market in London just a week earlier than Jetion. Its shares have fallen 60 per cent since then.

Furthermore, complaints that technology companies gain higher valuations on Nasdaq have been heard far longer than Jetion has been on Aim.

The Chinese "perception" issue is another matter. Investor confidence in companies from China has been recently damaged by a series of corporate governance incidents.

Unfortunately, Jetion is another such case. Last year the board dismissed its chief executive and three senior managers for alleged "breaches of their service contracts and fiduciary duties", believing the four were the operators of a rival that was in direct competition with Jetion.

However, the anti-Chinese line is hard to prove or disprove. While the actions of the previous management were a problem, it appears to have done little long-term damage to the business, and plenty of foreign companies and investors have been well received in London. Equally, it is not hard to see why investors are wary.

An informal parting of ways between Jetion and the London market seems an inevitable but frustrating outcome.

If Jetion does overcome its stumbles and succeeds in attracting a higher valuation in a fast-emerging market, it could be a blow to the perception of Aim as something more than a fund-raising market for new companies.

If not, Jetion's claims will ultimately sound hollow.

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[cool_hand] 04/6/2010 00:36

Credit Suisse added 582,000 to their existing holding, wonder if they will continue to mop up these sales?

Not sure if the company would put out a poor statement to allow an institution to buy in cheaper. How would that be in their interest?

[cordwainer] 03/6/2010 18:58

Jetion - the Chinese-Swiss solar company.
Did Credit Suisse buy any solar panels lately for their offices?
Solar-powered cheese and chocolate factories.
- Cheese and chocolate -powered mildly insane bb waffler.

[loafingchard] 03/6/2010 17:23

Credit Suisse have been mopping up , now have 14.29% .

[cordwainer] 02/6/2010 17:42

Anyone think the euro is near a bottom? (apart from being in deep sh*t that is)

[kendo10] 02/6/2010 15:23

All we can do is wait for the H.k announcement at the end of the summer and take the small profit. Sell up before the next interim at the end of sept, early oct. The share will probably go down to 50p then!

[cool_hand] 02/6/2010 10:40

206186 shares (£153,435) sold so far @ 73p, less than 1000 shares bought, price does not budge.

[cool_hand] 02/6/2010 00:25

jwe, my feelings are the same, 50p would seem fair value after the statement. of course anything could happen when they list on the HKSE. I just hope we're not being mugged here. Good article in The Evening Standard today commenting on the state of the stock market, basically saying the only ones making consistent money are the brokers.

[jwe] 01/6/2010 19:49

Well what we know for sure is that they will make less than 2.25p EPS for H1 2010.There is not much room there before you dip into loss,and as the Euro is continually reducing in value against the dollar i suspect breakeven for H1 to be a posibilty and a loss for H2 likely

[loafingchard] 01/6/2010 17:31

Yeah sure , the other assets on the balance sheet are worth nothing . lol .

[jwe] 01/6/2010 17:12

One of you is talking about the TU the other about the statement in the results.
Amazed that the share price has bounced.Obviously a large buyer about.Why?Goodness only knows .The exchange rate is getting worse daily and i can see 2010 not doing much more than break even.I`ll be surprised if there are any big HK backers.Personally i can`t see much more than 50p of value and that`s largely because of the cash

[cool_hand] 01/6/2010 17:09

as usual someone knows something we don't, if it's market sensitive it should be released.

[cool_hand] 01/6/2010 16:54

"In consequence, the results for the half year to 30 June 2010 are likely to show a profit which is less than for the same period last year,"

what bit did I miss?

[chrismez] 01/6/2010 16:44

Lol - Cool Hand - I like it - you're the only one I know that reads "profits will be significantly ahead of expectations" as a profit warning - nice one.

[cool_hand] 01/6/2010 12:01

They've moved the price up 6p today - and all I can see is sells?

[cool_hand] 31/5/2010 13:08

Read the trading statement again and it's clearly a profit warning. These things come in 3's, I expect more bad news; mind you they might take forever to release it.

[get rich quick] 30/5/2010 12:55

You hear about companies complaining that HMG not investing in british industry and can you blame them when so many AIM companies are run like this. As usual the pi's take the brunt and I exspect they will wan't us to stump up cash in a right issue soon