Asian solar stocks up sharply on signs of renewed demand
Asian solar stocks on Thursday echoed a rally by their US peers, with some surging as much as 20 percent on signs that prices for solar energy components are stabilizing, reports Reuters.
In Hong Kong, GCL-Poly Energy Holdings Ltd was up 13.2 percent, Trony Solar Holdings Co Ltd rose 8.3 percent, Apollo Solar Energy Technology Holdings Ltd firmed 3.5 percent and Solargiga Energy Holdings Ltd climbed 13.2 percent. South Korea's OCI Co Ltd jumped 14.9 percent.Most solar stocks retreated by more than 60 percent last year as prices for PV panels fell sharply, erasing profit margins for manufacturers.
The global rally came as investors cheered figures showing a dramatic rise in new solar installations in Germany in the fourth quarter and higher prices for polysilicon, a key raw material.
Some analysts, however, remain wary. "Investors should take caution in dealing with the shares, especially because PV equipment prices are still depressed and there is still huge overcapacity out there," said Hong Kong-based CIMB Research analyst Keith Li.
In Wednesday trade in the United States, Chinese solar companies Hanwha SolarOne Co Ltd, JinkoSolar Holding Co Ltd, JA Solar Holdings Co Ltd, Trina Solar Ltd , Suntech Power Holdings Co Ltd and Yingli Green Energy Holding Co Ltd led the advance with gains of 23 to 41 percent.