Metric
|
Solarfun Power
|
Canadian Solar
|
|---|
|
Revenue
|
$171 million
|
$171.2 million
|
|
Shipments
|
40.3 megawatts
|
41.8 megawatts
|
|
Gross Margin
|
16.5%
|
16.5%
|
|
Operating Margin
|
12.1%
|
11.7%
|
|
European Revenue
|
100%
|
97.9%
|
All data from company filings.
While their shipment levels remained in a dead heat in the most
recent quarter, the two Chinese solar shops have diverged in some ways:
|
Metric
|
Solarfun Power
|
Canadian Solar
|
|
Revenue
|
$144.6 million
|
$213.1 million
|
|
Shipments
|
102.6 megawatts
|
102.6 megawatts
|
|
Gross Margin
|
20.7%
|
16.3%
|
|
Operating Margin
|
13.1%
|
9.3%
|
|
European Revenue
|
n/a
|
87.6%
|
All data from company filings.
It's striking that CSI sported 47% higher revenue than Solarfun this
quarter, given an identical shipment level. The former reported average
sales prices just more than $2 per watt for the quarter, which mirrors
the $2.03 figure cited by Solarfun. So it's not that CSI pulled down a
big premium for its solar wares. Every well-established supplier, from Yingli Green Energy (NYSE: YGE) to Suntech Power (NYSE: STP), can be expected to land roughly the same pricing for modules in this largely commoditized business.
Solarfun reported that 40% of its shipments were tolling-related in
the quarter. I believe this processing business, in which the company
converts PV cells to modules on behalf of a third party, explains the
wide revenue discrepancy. Solarfun's higher margins make sense in this
light, as well.
Next quarter, Solarfun's module processing business is forecast to
account for only around 20% of shipments, and gross margins are guided
to the upper teens, so it would be a mistake to conclude that this firm
has smoked CSI in terms of ongoing profitability.
In terms of capacity, Canadian Solar has clearly pulled ahead of
Solarfun. The former firm has reached 820 megawatts (MW) of module
capacity, and is on the way to a gigawatt next year. Solarfun is
ramping from 500 MW to 700 MW sometime next year.
© 2009 UCLICK L.L.C.
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