Sunpower    Last:0.47   -

Re-look at Sunpower

To all my followers, watch this stock. Run up coming soon.

 

the dilution is quite a lot and not really sure what' s the value that a PE firm can bring to the table unless of course there is a buy-out somewhere down the road.

 

time for it to breakout to new heights!~

 

announcement is out and trading halt is lifted. However, I am not sure about the implication on the share price

CDH Investments (鼎 晖 投 资 ) (one of the largest China-focused Private Equity Firms) subscribes for US$110 million Convertible Bonds, and will own 28.2%1 of Sunpower, assuming full conversion at S$0.50 Conversion Price 

 

If shares due for force selling yesterday then what will happen due to the halt?

 

beltrance      ( Date: 13-Dec-2016 10:46) Posted: Trading halt pending release of announcement. Probably related to previous announcement on 7 Dec 2016 : SUNPOWER IS A MEMBER OF THE CONSORTIUM WHICH WON THE TENDER FOR A PPP PROJECT IN SHANTOU CITY, GUANGDONG PROVINCE, CHINA  Sunpower is expected to participate in the design, build and operation of cogeneration power and centralised facilities, and will not be participating in the investment, build and operation of industrial wastewater treatment plant and water recycling plant. The commercial details are still in discussion. The Company will make announcements in due course as and when the commercial details are finalised.

 

Trading halt pending release of announcement.

Probably related to previous announcement on 7 Dec 2016 :

SUNPOWER IS A MEMBER OF THE CONSORTIUM WHICH WON THE TENDER FOR A PPP PROJECT IN SHANTOU CITY, GUANGDONG PROVINCE, CHINA 

Sunpower is expected to participate in the design, build and operation of cogeneration power and centralised facilities, and will not be participating in the investment, build and operation of industrial wastewater treatment plant and water recycling plant. The commercial details are still in discussion. The Company will make announcements in due course as and when the commercial details are finalised. 

 

http://www.theedgemarkets.com.sg/sg/article/sunpower-stocks-heating-amid-green-investments

 

Sunpower stocks heating up amid green investments
By Jude Chan / theedgemarkets.com.sg   | December 12, 2016 : 4:29 PM MYT    
SGX Mainboard-listed Sunpower Group is a cheaper environment concession play with shares trading significantly cheaper than overall industry peers, says CIMB in an unrated report on Friday.
The China-based environmental equipment specialist recently diversified into green investments of power plants by leveraging on its proprietary heat insulation and clean coal technology
&ldquo The company is a potential beneficiary of Chinese policies on stricter air quality and replacement of inefficient coal-fired boilers,&rdquo says CIMB lead analyst Ngoh Yi Sin.
&ldquo Apart from its penetration into green investments, Sunpower continues to gain traction in its existing businesses,&rdquo Ngoh adds.
Sunpower&rsquo s core net profit has more than doubled to RMB 89.2 million ($18.5 million) in 9M16, compared to RMB 40.7 million in the same period last year.
&ldquo The company currently trades at 12.2x historical P/E, which is significantly cheaper than overall industry peers&rsquo average of 31.2x,&rdquo says Ngoh.
While Sunpower does not have a formal dividend policy, Ngoh says the company has been paying out dividends based on an approximately 5% payout ratio, implying a dividend yield of about 0.2% on average.

 

Considering to vest in Sunpower coz seems new contract will have positive impact on FY2017 results.   Anyone any views on this counter ?

 

Sunpower subsidiary wins $4.6 mil contract in Inner Mongolia

By  PC Lee  / theedgemarkets.com.sg   | September 20, 2016 : 6:57 PM MYT     

Sunpower Group says wholly-owned subsidiary, Jiangsu Sunpower Technology Co. has won a RMB22.58 million ($4.6 million) contract from China Shenhua Coal to Liquid and Chemical Co. (CSCLC).

Sunpower, the designer of energy conservation products in China, says the subsidiary will provide Engineering, Procurement and Construction (EPC) services to the E1 concentrated liquid crystallisation project of CSCLC&rsquo s coal liquefaction project located in Ordos City, Inner Mongolia.

This zero-liquid-discharge salt separation project in the first of its kind in China, says Sunpower.

The EPC project will be completed in 2017 and will have a positive impact on the group&rsquo s FY2017 results.

 

40cent ai lai leow

 

Was interested in sunpower but high pe and pb with levitated debt. Stock is nevertheless on up trend due to recent spate of contract wins and focus on clean energy in China. I may have missed this gem!

 

not sure if it is a case of undisdiscovered gem? just announced another contract win of RMB116.1m. since dec last year, they have won 7 contracts totaling RMB1.2bil, of which all were disclosed to have material financial impact for FY2016.

these new contracts already represent some 83% of FY2015' s revenue so orderbook is definitely looking solid for this year. dividend might be little but makes sense given that the industry is CAPEX intensive. seems like a gem to look out for.

 

Still trading with very low volume....can be a bear trap so when want to sell no buyers around.

 

quite an elaborate write-up by NextInsight that explains Sunpower' s capabilities and abilities to tap on the market for clean environmental controls in China. the RMB500b centralised heating market seems to open up opportunities for the niche player. business model sounds like the water companies (HanKore, SIIC, United Enviro) in the early days with the BOO/BOT project wins. (Article)

UOBKH also wrote a non-rated research note, in terms of valuations, compelling as it is only trading at 6.7x trailing PE.

INVESTMENT HIGHLIGHTS 

Key beneficiary of rising government spending in China to tackle worsening pollution.
Environmental expenditure in China rose 3% yoy to Rmb112b in Dec 15, compared with a 1% growth in overall expenditure, according to SCMP. In Oct 14, the Chinese government released the &ldquo Boiler Action Plan&rdquo aimed at promoting high energy-efficient boilers with a total capacity of 500,000 tonnes of steam production/hour and to phase out obsolete coal-fired boilers with a total capacity of 400,000 tonnes of steam production/hour by 2018. 

Estimated market potential for boiler replacement.
Sunpower estimates the market value for the complete replacement of obsolete boilers at S$108b. Given its long track record and proprietary technology protected through patents, we see major opportunities for the company as China embarks on environmental reforms. We understand this is a new market with very few players but interest is growing as more and more companies enter this space. The company is actively engaging provincial authorities to negotiate for projects in the different economic development zones in China. 

Dr Lin Yucheng takes a stake.
Dr Lin is the founder of Citic Envirotech (Citic) Ltd (previously United Envirotech Ltd). Given Citic&rsquo s track record as an EPC contractor operating in Chinese industrial parks, we view this as a vote of confidence in the potential of the market and in Sunpower&rsquo s management. 

Moving towards recurring revenue.
The central boiler contracts are on a buildoperate-transfer (BOT) or build-operate-own (BOO) basis with tenors of up to 30 years. It takes 8-9 months to construct and get a boiler ready for use. This gives each project a visible and sustainable revenue stream going forward. The downside of such models would be the capital required to build and construct the asset. As of 31 Dec 15, excluding pledged bank deposits, the company had a small net debt of S$0.03/share. A reasonably healthy balance sheet and large cash balance provides room to leverage up and raise capital for projects with attractive IRRs.

OUR VIEWS

Boiler financials. Our estimates indicate boilers could cost Sunpower Rmb100m to Rmb1b to construct. We expect an IRR of around 15% for each project with a payback period of 6-7 years. As of Dec 15, the company had secured three central steam boiler contracts worth a combined of about Rmb1b.

Putting the brakes on coal. We believe the Chinese government is taking active measures to tackle pollution in the country. According to China Daily, coal consumption was down about 5% yoy in 2015. However, obstacles remain as we feel enforcement of such laws is still weak as Reuters reported there is still widespread misreporting of harmful gas emissions by Chinese electricity firms. 

 

does this recent correction present a good entry opportunity? any thoughts?

 

http://sunpower.listedcompany.com/newsroom/20151230_174325_5GD_I3GWUT2U98OJGYWD.1.pdf

 

0.345      Vol:3128k        +0.045

4 year wait to dble the investment.. Not bad a time frame..

congrats to those who stuck with sun power thru thick n thin n believed in its potential

ozone2002      ( Date: 28-Sep-2011 13:31) Posted: still believe it still is :) the recent announcement confirms it :) ozone2002      ( Date: 27-Feb-2011 20:45) Posted: MEGA GEM...... best kept secret

 

Volume is expanding slowly but steadily. I bought some this morning and wait for breakout signal at 15.1c then I will chase. Good luck to those who are vesting here.

 

Asdew has been stuck here for  a year. will it do something in 2015?

ozone2002      ( Date: 24-Apr-2013 23:39) Posted: SUNPOWER: Artur sells but Asdew buys Written by Sim Kih Wednesday, 24 April 2013 07:00 Sunpower?s stock price has been suffering an overhang ever since substantial shareholder Artur Jurczakowski started offloading his holdings via open market transactions. Stock price was about 40 cents when he started selling in February 2011. It has been battered down by some 50% to about 20 cents since then. Bloomberg data SUNPOWER GROUP?S substantial shareholder Artur Jurczakowski has been regularly offloading his shares -- but a Singapore fund, Asdew Acquisitions, has upped its stake in the past year. Jurczakowski's latest announced disposals were in February 2013, when he sold 1.4 million shares at an average price of 20 cents on the 5th and 19th and his interest dipped below 5%. Asdew Acquisitions, on the other hand, upped its stake in Sunpower from 3.57% as at 9 March 2012 to 4.29% as at 8 March 2013. Just check out the annual reports. Asdew Acquisitions is a fund predominantly owned by former Kim Eng director Alan Wang. In February 2013, Asdew emerged as a cornerstone investor of Mapletree Greater China Commercial Trust, one of the largest ever REIT IPOs in Singapore. Last month, the high profile fund also took a placement of new shares issued by Sino Grandness Food Industry. The placement increased Asdew's interest in the manufacturer and distributor of bottled juices and canned fruit & vegetables by 8 million shares to 18.8 million, making it a substantial shareholder with a 6.4% stake. Major shareholder Professor Guo Hongxin founded the company and now holds 23%. The key management collectively hold over 60% in the company. NextInsight file photo Since then, investors chased Sino Grandness' stock price up by a whopping 39% to reach a historical high of S$1.26 on 19 April. Will Asdew's interest in Sunpower work similar magic? For the same magic to work with Sunpower, investors may have to wait out Jurczakowski's disposals. Jurczakowski held 10.85% when he started his open market sales on 28 February 2011. He was still its fourth largest shareholder with a 4.86% stake as at 19 February 2013. Sunpower's stock price was about 40 cents when Jurczakowski started selling back in February 2011. Each transaction was between 20,000 to 40,000 shares and took place about twice a month. These regular share disposals battered the stock down to about 20 cents. Last week, its stock price plunged to a 3-year low of 16 cents before recovering to 17.5 cents. At this price, dividend yield is 0.86% and price earnings is only 3.5 times for FY2013 (Bloomberg data). For FY2012, it is proposing a first and final dividend of 0.15-cent that goes ex on 2 May and is payable on 31 May. The top three shareholders in Sunpower are executive chairman Guo Hongxin (23.19%) and executive directors Li Lai Suo (21.0%) and Ma Ming (17.36%). In FY2012, its revenue decreased 6.1% to Rmb 1,173.3 million while net profit decreased 33.2% to Rmb 60.7 million. The good news is: Gross profit margin increased from 21.9% to 25.1% due to better selling margins of heat pipes and heat pipe exchangers. The company?s order book remains strong. It was Rmb 1.12 billion as at 26 February 2013. Being a member of both China Petroleum and Chemical Corporation (?SINOPEC?) materials supply network and China National Petroleum Corporation first-tier network, the Group is pre-qualified to supply products to companies in the SINOPEC and CNPC groups. Last year, Sunpower secured substantial contracts from long-term customers in various sectors. These customers included Sinopec Hubei fertilizer, Xining Special Steel, Ningbo Haiyue and China Huanqiu. It also penetrated the Mexican market in August 2012, providing key equipment for Braskem Idesa, a joint venture between Brazilian Braskem, the largest producer of thermoplastic resins in the US and the eighth largest in the world, and Mexican Grupo Idesa.

 

Still holding. Patience.

 

Private placement of 65.8 million share at 14c per share is  completed and Sunpower kicked start 2014 with a relatively  remarkable  1Q result.

 

For Immediate Release Sunpower&rsquo s 1Q2014 net profit to shareholders increased to RMB11.4 million

Revenue grew 19.5% yoy due to increased sales of Energy Saving and Environmental Protection products

&bull Profit increased mainly due to one-off sale of equipment to certain customer

&bull Group to improve efforts in research and development to capture the growing energy conservation and environment protection market in China