Yingli Green Energy (YGE, Financial) is delivering solid growth on different counts. For example, in France, Yingli has signed a module supply contract for 120 megawatts, which is expected to add 40% of the power capacity with a major European utility project of 300 megawatts in Southwest France. Neoen is a key French Independent power producer developing €360 million of the power project. Yingli is expected to supply more than 393,000 PID resistant 72 cell multicrystalline modules.
New products to power growth
In the third quarter, Yingli launched the new product line of smart modules, featuring the newest innovations in distributed electronics. Starting first quarter of 2015, customers are believed to choose Yingli PV modules with incorporated optimizers from top companies like SolarEdge and Tigo.
The 2014 FIFA World Cup is driving significant Web site traffic, more than doubling in the third quarter as against the same quarter a year earlier. Yingli generated several new leads worldwide that includes considerable volume from Latin America, representing ten times expansion in new business leads over third quarter last year.
In Germany group connections expanded by 7% during third quarter compared to second quarter making the entire system installations for the initial three quarters of the year to over 1.6 gigawatts. There were 345 megawatts of installations in July owing to demand expansion.
Yingli recently signed a 72 megawatt module supply contract and many more projects with its long-term partner Solarcentury. These shipments are expected to be completed by the closing of fourth quarter 2014.
Conclusion
Yingli has not provided any data for trailing P/E and forward P/E ratios, representing a loss to the company. The PEG ratio of 0.02, below 1 indicate poor growth compared to healthy industry’s average of 0.67. The profit margin of -11.57% signifies no profit but loss. The revenue per share and diluted EPS of 12.85 and -1.49 respectively signifies poor shareholder earnings. The quarterly revenue growth of -7.20% is disappointing compared to robust industry’s average of 28.00% and depicts continued decline in revenue.
The current ratio of 0.73 suggests huge debt levels on the company’s balance sheet. Finally, the investors are advised to stay away from Yingli as of now looking at poor long-term growth prospects indicate by the CAGR for the next 5 years per annum of -149.70%, much below the solid industry’s average of 16.48%.
