Lower Forecast, Smaller Loss for Yingli Green Co. (NYSE:YGE)

443

By Hanson So on November 26, 2014 Company

The Chinese green energy company Yingli Green Co. (NYSE:YGE), focused on making photovoltaics, released its results for the third-quarter performance this Tuesday morning. The company posted a loss on its earnings per every Share in the American Depository, of an amount equal $0.11/share. However, this loss was still lower than the previous loss stated by the company in its last year’s quarter reporting, which was around $0.25, with the consensus estimate being of $0.13/share. The value of one Share in the American Depository is equal to the value of one single ordinary share in the market.

Revenue-wise, the company has not performed any better than last year. However, its revenue has surely tumbled in figures. Compared to last year’s revenue figures, this year Yingli Green Co. (NYSE:YGE) posted a total revenue of $515.52 million, 7.2% lower than previous year. This figure also comes in sharp contrast to the consensus estimate for the revenue for Yingli Green Co. (NYSE:YGE), which was $655.88 million.

Internal costings of Yingli Green Co. (NYSE:YGE) have shown better results compared to previous figures.

Shipments of the modules have increased by almost 2% in last quarter, to approx. 903.4 MW. Gross profit of the company increased by 34% and Gross margin increased by 20.9%.

The third quarter of this year is also a historic one, as for the first time after three years, Yingli Green Co. (NYSE:YGE) managed to generate an operating profit, with the operating margin figure coming from -2.5% to +5.9%. Net loss posted by Yingli Green Co. (NYSE:YGE) was also a much smaller figure compared to the staggering $44.3 million of the quarter previous to the third, at $18.2 million.

According to analysts, this overall betterment in performance is a direct result of lower costs accruing from administration and sales.

Yingli Green Co. (NYSE:YGE)’s CEO, Miao Liansheng, is more than optimistic about the company’s future. According to Mr. Liansheng, the development of the downstream projects undertaken by the company has been very slow due to many factors. However, according to the CEO, the company is “progressing well in the downstream in the second half of 2014”.

The third quarter of 2014 has been a very busy one for Yingli Green Co. (NYSE:YGE), which, according to its CEO, has “began to construct 185 MW of downstream projects, bringing our projects under construction to a total of 340 MW”. The shipments of an internal nature for projects such as these have gone up to 187MW, Mr. Liansheng said in a statement.

Mr. Liansheng sees the fourth quarter an even busier one for Yingli Green Co. (NYSE:YGE), with the construction of more projects for downstream, 50-60 MWs in total. The total figure target that Yingli Green Co. (NYSE:YGE) has set for itself stands at 400 MW, which it plans to accomplish by the end of 2014 in association with some of its partner firms. The company will also “sell about half of these projects upon completion”, according to Mr. Liansheng.

Shares of Yingli Green Co. (NYSE:YGE) went down by 1.3% in the New York Stock Exchange on Tuesday.