Re:market correction... by MacGyver30th, Jul. 04:11 PM Market is bullish again.. Good trading period from now to early-m...
Re:Map Technology - ... by happin30th, Jul. 03:16 PM MAP is now at 6 cents. Noticed that yesterday's last trade was 1...
Re:Rokko-An Explosiv... by neontet30th, Jul. 07:41 AM all these semicon companies are doing really well.
congrats on s...
market correction by pathfinder30th, Jul. 12:10 AM With all US company result good news ending in 2 weeks time & no ...
Re:Rokko-An Explosiv... by MOSBY29th, Jul. 11:49 PM http://www.remisiers.org/research//dailyex2307.pdf
TP :$0.30...
SUNPOWER: 57% net profit surge on stabilized materials market
Written by Sim Kih
Sunday, 28 February 2010
Being in the top technology tier, Sunpower can easily penetrate lower market segments, said Prof Guo. File photo by Sim Kih
LEADING HEAT TRANSFER technologies specialist Sunpower has posted a 57% gain in net earnings of Rmb 70.6 million for FY09.
Its executive chairman, Prof Guo Hongxin, was in Singapore to meet investors at its results briefing last Friday.
He emphasized Sunpower's long term goal of becoming a top-tier technology company, one which sets global standards for heat transfer technology.
Second-tier companies sell technology while 3rd-tier companies only manufacture, said the scientist.
Group revenues were flat at Rmb 753.6 million (down 1.7% year-on-year) while cost of sales fell 6.9% as materials prices stabilized last year.
Average selling prices of Sunpower products were reduced in FY09, in line with lower raw material prices.
Net earnings were up despite a flat top line mainly due to: 1. Lower material costs 2. Recovery in the turnkey energy saving systems segment; and 3. Revival of projects by customers
Pressure vessels were the largest revenue contributor and will drive 2010 sales.
Group gross profits improved 16.0% to Rmb 201.3 million and gross margin was 26.7%, an improvement of 4.1 percentage points.
Segment revenues improved for heat pipes (up 20.5%), pipe supports (up 26.2%) and turnkey energy saving systems (up 141.7%).
Pressure vessel sales were down 25%, but this segment is expected to outperform this year, driven by a recovery in petrochemicals demand, said Sunpower’s executive director, Frank Ma.Pressure vessels contributed 49% to top line in FY09.
Heat pipe segment margins narrowed 1.8% percentage points to 11.7%, affected by a contraction in infrastructure demand from steel mills.
Heat pipes contributed 30% to top line in FY09.
Segment margins for pipe supports were 36.2%, albeit its contributon to the top line was only 9%.
Mr Ma explained that this segment was so lucrative because Sunpower is a clear market leader in this product, which is used in the Qinghai-Tibet railway track.
Should there be an expansion in sales volume for this, margins are likely to further improve because economies of scales can still be improved, he said.
Sales of Sunpower's pressure vessels are expected to outperform this year, driven by a recovery in petrochemicals demand.
The energy-saving and environmental protection systems segment turned around this year with segment margins of 18.8% and top line contribution of 12%.
This segment had suffered a segment loss of Rmb 26.9 million for one project in 2008 due to unexpected hikes in material prices.
There was also a reversal of impairment allowance on inventories and trade receivables totaling Rmb 4.1 million, thanks to project revival by a customer.
As a result, group segment margins improved 6 percentage points to 14.9%.
Operating cashflow multiplied 4-fold to Rmb 97.4 million, mainly due to better pretax income and a substantial decrease in inventory accumulation.
While Sunpower’s serves local and international giants like SINOPEC, CNPC, BASF, BP, DOW, SHELL, sales are mainly to China (92%) where many foreign customers have set up JVs.
To meet the strong infrastructure demand from the petrochemical sector, Sunpower is looking into how it can increase capacity by 20% in 2010.
Story Archive 
FION PHUA, Tee Up Marketing Enterprises (HP: 9760-5080)
Dear advertisers...
