Nominated Advisor and Broker to Renesola Limited (NYSE: SOL, AIM: SOLA), HansonWesthouse (AIM: HWL), issued an update in response the third quarter results from the Chinese based solar manufacturer this morning.
In the report, HansonWesthouse maintained its “buy” stance on the stock, noting that despite continued weakness in pricing power for solar products, Renesola had managed to increase output and revenues “sharply” in the third quarter.
For the third quarter, Renesola posted a net loss of US$10.5 million on revenues of US$141 million, which was better than HansonWesthouse had expected, and though the broker expects the Company to report further losses in the final quarter of 2009, the outlook for 2010 was considerably rosier as demand recovers. “Although profit estimates remain indicative at this early stage, we believe that ReneSola’s maturing status as a fully integrated solar company will enable the group to show a strong recovery in 2010,” the broker added. At the end of the third quarter, Renesola had net debt of $487.4 million; however, since the end of the quarter the company raised $70 million through American Depository Shares (ADS).
HansonWesthouse is forecasting full year (FY) 2010 revenues of US$838 million and earnings per share of 14.8 pence placing the company on a FY 2010 P/E of 8.6. For the FY 2009, Renesola’s Nomad and Broker is forecasting revenues of US$514 million, up 5.7% from its previous estimate due to increased output guidance from the Company for the fourth quarter.