Solar planes maker First Solar Inc. (FSLR) and China Power International New Energy Holding Limited (CPINE), a wholly-owned subsidiary of China Power New Energy Development Company Limited (CPNE), have agreed to pool their resources for solar photovoltaic (PV) projects in China, the United States and other international markets.
Per the agreement, First Solar and CPINE will initially explore collaboration on solar PV projects in China and identify project investment opportunities for CPINE in the U.S. and other global solar markets.
The agreement will leverage CPINE’s advantages in the domestic solar power industry enhancing its role as a leading renewable energy developer in China.
The Chinese company has plans to develop 2 GW of solar capacity in China by 2020. Additionally, the agreement will boost First Solar’s expertise as a leading global solar PV technology company, helping it to further expand its business in China along with its 2.4 GW pipeline in North America.
Both China and the U.S. are important markets with vast potential for solar energy, and this agreement can serve as a model for U.S.-China collaboration on renewable energy. Apart from gaining command in the Chinese and U.S. power markets, First Solar and CPINE said this agreement has the potential to help expand in other international markets, opening up tremendous growth opportunities.
Based in Phoenix, Arizona, First Solar designs, manufactures and sells solar electric power modules using a proprietary thin film semiconductor technology. The company's solar modules employ a thin layer of cadmium telluride semiconductor material to convert sunlight into electricity.
Last week, First Solar reported first quarter 2011 robust results, with earnings per share of $1.33 smoothly sailing past the Zacks Estimate. For fiscal 2011, First Solar reaffirmed its sales guidance range of $3.7 billion – $3.8 billion. Fiscal 2011 earnings per share guidance range is also reaffirmed between $9.25 and $9.75.
First Solar’s growth story is marked by its utility-based order backlog and strong balance sheet. The company focuses on capacity build-outs, technological enhancements and cost minimization. At the same time it also enjoys technological superiority over its silicon-based solar peers.
We are currently Neutral on this Zacks #3 Rank stock. This is in line with its peers like Ascent Solar Technologies Inc. (ASTI) and China Sunergy Company Ltd. (CSUN).
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