Yingli Green Energy (YGE) Beats, Reaffirms Guidance

Yingli Green Energy (YGE) reported a Q2 non GAAP EPS of $0.21, 6 cents better than the analyst estimate of $0.19 on revenue of $398.1 million, vs the estimate of $371.13 million.  That represents a 62% increase over the year ago EPS number and an 82% jump in revenue, so a real nice quarter from Yingli.  Gross margins reached a record high 33.5% in the quarter.

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Here are some highlights of comments made by CEO Liansheng Miao:

– The 2010 FIFA World Cup sponsorship has made a huge splash. .. has effectively boosted our brand recognition both within and outside of the conventional solar community, which is expected to greatly enhance our competitive advantages in this new era.

– We have commenced initial production of 300 MW PANDA high efficiency solar cells in July 2010, and successfully enhanced PANDA cell conversion efficiency rate to 19% on the pilot line, and have kicked off collaboration with Innovalight to boost the average efficiency of our multicrystalline silicon based solar cells.

– Fine Silicon, our polysilicon manufacturing facility with a designed annual production capacity of 3,000 metric tons, has successfully commenced commercial operation since earlier this month.

– In Europe, we are fully stretched to satisfy our existing customer base and to continue to attract new customers in high growth emerging markets such as France, Italy, Czech Republic, Greece and the United Kingdom.

– In North America, our sales network has expanded into 18 states in the U.S., as well as Canada and the Caribbean, and we have become the leading supplier of PV modules in New Jersey and California. We have also been making progress in the rooftop and ground mounted segments and were recently selected for a number of high profile projects on both the West and the East Coasts.

– In China, we are enhancing our strategic cooperative relationships with utility companies in various concession bidding projects in order to further expand our footprints.”

Business Outlook for Full Year 2010

Looking ahead, Yingli reaffirms its PV module shipment target to be in the estimated range of 950 MW to 1 GW for 2010, which represents an increase of 80.8% to 90.4% compared to fiscal year 2009.  They have also raised the gross margin estimate from 27 – 29% to 28 – 30%.

Shares of YGE are trading flat today and are still working on carving out a new base which began in January.

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