Trina Solar (TSL, Financial) delivered excellent fourth quarter 2014 performance with solid shipments of 3.66 gigawatts, achieving its top performance for the year and in line with the annual guidance. Through this breakthrough performance, it emerged as a world’s major solar module producer and dealer.
A strong and diverse portfolio
Further, by the conclusion of 2014, Trina reinforced its attempts in growing DG projects in China by regulating several of its business models such as offering EPC service coupled with staff growth. It has already concluded 13-megawatt DG project in the fiscal year 2014 being an EPC provider. It now has a total of approximately 300-megawatt DG projects in its growth portfolio and nearly 15 megawatts are under development.
Trina strengthened its top position in the module business segment. Its uniquely designed solar installations grew in the key markets of the U.S., Japan and China along with several other major markets with the reduction of the module prices.
The rapid acceptance of the solar panels developed by Trina signifies the company’s leadership in the emerging solar power market.
Smart moves
The focused cost-reduction efforts of Trina through the adoption of manufacturing process optimization along with the accelerated acceptance of its major products in the key and significant markets of U.S., EU nations and Japan is forecasted to develop Trina into a Solar market leader, going forward.
The strategic growth investments of Trina into the DG projects in China as well as the much required optimization of its key business models is believed to expand the company’s market share and the overall profitability.
The solar battery market in China is believed to reach 65GW with an annual expansion of 14% by 2018. Moreover, Photovoltaic power generation industry is steadily received by several national governments who are persuading it to expand.
Conclusion
Overall, the investors are advised to invest into Trina Solar Limited looking at the impressive company valuation with the trailing P/E and forward P/E ratios of 23.96 and 8.66 respectively. Also, it is comparable to the industry’s average P/E of 22.30. The PEG ratio of 0.34 depicts solid company growth and better than the industry’s average of 1.03. The profit margin of 2.60% is satisfactory. However, Trina needs to optimize its debt-laden balance sheet with huge total debt of $1.13 billion against weaker total cash of $392.89 million only to continue to plan for future growth investments.
