Read the latest interims.......just make sure that you are sitting down.

Lots of comparisons with US-quoted, China-based firm Suntech, which has market cap $4 bn or so.

Suntech may be overbought - I'm not convinced that this is going to reach quite those dizzying heights, but am gonna enjoy the ride while it lasts :o)

prefer to compare with MEMC, believe suntech is a solar power user of wafers as opposed to a wafer manufacturer

MEMC 26x pe

??

f18

Taking a breather today,ready for the next phase one hopes.

Hi
I can see this share reaching 1.72 by this day next week. It appears to me that the placing price was too low and that 1.62 / 1.72 would appear to be a fair value
Regards
SM

Well - I can't work out a proper valuation for this. But if I focus on the growth rate then we can easily see that this is a no brainer.

In Q4 there will be 5.5 times as many furnaces as in Q1. In Q2 there was just over 2X as many and net profit increased by over 230% !!

Also margins will improve with the wafer cutters - they are over 10% more efficient and no 3rd party costs will have to be paid.

So Q1 = 790, Q2= 2665 Q3= 6000 Q4= 9000 = 18,455,000 Pounds Net Profit

9000 in Q4 as a result of having the full 90 furnaces installed and benefiting from cutter efficiencies.

This would result in EPS of 18.455 p which shows that we are now on a P/E of 7.8. This is only for 2006 - nevermind looking forward ( which is what share investing is all about ) to 2007.

Would you double EPS for 2007 ? If so then we are trading on a forward P/E of less then 4 !! Ridiculous.

Would be careful with these chinese wonder stocks, especially now at a large premium to the placing, many will be jumping ship with a tidy profit...

Solar not really a viable energy source either.......IMHO, DYOR ect

barwoni

thanks for that researched insight. The Chinese govt would disagree with you

:)

F18

If barwani had purchased them at 99p or less than the research would have been good,for some reason its a way of putting people off their investment,so they sell in panic and we buy them cheap,that is my research,i might be wrong.

how many companies do you know who have sold their entire output for the next 18 months and been paid up front for it?!!!!

I'm just gonna start ignoring ill informed and immature comments

F18

COMPLETELY AGREE WITH YOU FORTITUDE 18.

Barwoni, the point with Solar Energy in China is that with their sunshine record, it becomes a lot more efficient. Somebody posted what I hope is an accurate and very interesting piece of info on this over on ADVFN.

Also the figures, as others (Forti) have said, speak for themselves.

Currently not an investor - just came up on my radar this morning. Lots of info over at ADVFN and many comparisons being made with Suntech. I agree with Fortitude18 that this could be misleading for the reasons mentioned in post 36.

Many Chinese stocks do well initially mainly because they tend to be underpriced at placing eg CHNS. However, with SOLA, there are some good points - healthy order book, good financials, being in the renewable energy sector and in recycling.

The SP appears to be taking a breather and once the speculators leave, this should motor and if other Chinese stocks are anything to go by, I think we'll see 225p within 12 months, subject to usual market conditions, currency fluctuations, silicon prices and, most important, the demand for solar energy as a viable renewable source (if Germany is anything go by, I do not forsee a problem here). All IMHO and please DYOR.

However, I'm not at all comfortable that this company is incorporated in BVI thus gaining exemptions from issuing RNS for major movements in shareholdings. I would welcome all thoughts on this matter from anybody because my knowledge about companies incorporated in BVI is zilch. Thanks & good luck to all investors.

Err lads maybe best taking a look at SIT a Sunny California company listed on aim and with orders in the region of 200 mill us.....300p down to 40p......

Solar.........

http://www.moneyam.com/quote/index.php

Re: SIT. Why as it fallen so far if its such a good investment? Think I will stick with SOLA thanks.

cheers

F18

Barwoni, SIT had cashflow problems because of poor financial management. Also, their core activity is manufacture of non-residential building integrated photovoltaic (BIPV) roofing systems. This sector has seen growth of 35% per annum the past 3 years but companies like SIT could not deliver for various reasons like lack of resources, cashflow, past management emphasis on sales instead of production etc. In my opinion, I feel it's not right to compare SIT with SOLA. However, it's possible these same problems can arise with SOLA as we in UK do not have sufficient knowledge of the SOLA's management team but if the historical financials are anything to go by, I very much doubt SOLA will encounter similar problems. Generally speaking, I have rarely come across a Chinese company not meeting it's targets because of lack of resources or cashflow. All IMHO and please DYOR.

Thx for that input ramu.

a company like Motech would not enter into a 3 year supply agreement if they thought SOLA could not execute its side of the bargain. Large companies do credit checks and financial viability checks on their suppliers before entering into these agreements. If SOLA let Motech down that fcuks up Motechs production output. Would Motech take that risk? Of course not.

With SOLA you get added value throughout the production process. Explains why margins are so competitive

F18

Pity the SP took a bit of a dump, particularly in the last half hour. Seems like all the world's markets caught a cold today, in spite of falling oil prices.

barwoni - all of 2006 & 70% of 2007 order book already filled at SOLA.

i see our very own Shares mag have mentioned Renesola experiencing 'meteoric' growth but concerns about silicon supply. the mgt have already assured its customers that this is not an issue for the foresseable future

F18