According to EnergyTrend, the green energy research division of TrendForce, most Taiwanese solar companies’ revenues saw growth in June due to the short-time spot price increase and the stable demand. Although Germany’s subsidy cut continues to bring in rush orders, top-tier makers take a more conservative stance about accepting OEM orders and carefully manage their capacities in order to adjust themselves once the market dynamics shift. On the other hand, the second-tier companies have no such concern and can be at full capacity to meet the high demand. In review of the second quarter of 2012, the preliminary ruling on the U.S. anti-dumping and anti-countervailing case against China propelled Taiwanese PV companies’ spot prices to go up, especially the prices of high-efficiency multi-Si solar cells. However, the growth momentum was compromised by the lukewarm outlook and the subsidies cuts in Europe, which will put more pressure on the downstream players and prevent the wafer and cell prices to further rebound.
Looking towards the third and forth quarter of 2012, the German government’s policy on installed solar capacity cap may dampen the European solar market. Taiwanese solar firms’ strategies concerning the Asian market will largely affect the companies’ revenues in the second half of 2012. Japan implements a solar feed-in tariff (FiT) in July, which will undoubtedly attract global solar firms to enter the Japanese solar market. Nonetheless, compared to European and U.S. solar market, the Japanese market is still more on the conservative side and is less open to foreign companies. For this reason, only acquiring the orders from the Japanese downstream players or the OEM order from Chinese major firms can Taiwanese solar companies maximize their utilization rates and retain the cash flow. Stable overseas orders will become the key to having a leg up on other competitors.
As for the outlook for 12’July, lacking the much-needed growth momentum, PV spot prices may start dipping. As long as the demand from Europe persists, Taiwanese companies’ revenues will stay more or less flat. However, given the uncertain outlook, it is still difficult for Taiwanese solar companies to be profitable. Cell makers Solartech Energy Corp, NEO SOLAR POWER, and Gintech’s June revenues climbed 3.77%, 8.61%, and 22.3% MoM, respectively. MOTECH’s June revenue plunged by 22.3% MoM. Wafer maker Sino-America’s June revenue went up 7% MoM, while Green Energy Technology’s June revenue dropped by 4.26% MoM.
Taiwanese solar companies’ revenues in June
Source: EnergyTrend
