Thursday's Asia ADR Recap: Solarfun

Chinese solar company Suntech Power (STP Quote) announced its first-quarter revenue soared 76% to $434.5 million, vs. Wall Street estimates of $378 million. Suntech said first-quarter net income jumped to $55.8 million, or 33 cents per American depositary share, vs. $50.6 million, or 29 cents a share, for the same period a year ago. Looking forward, the company expects second-quarter revenue to come in between $430 million and $440 million, vs. Wall Street estimates of $426.6 million. It expects full-year 2008 revenue to be in the range of $1.9 billion to $2.1 billion, vs. Wall Street estimates of $1.98 billion.

American depositary shares of Suntech Power, which trade on the NYSE, fell 2.8% to $44.95 on 3 times the stock's average daily trading volume.

Elsewhere in the solar complex, Goldman Sachs Group downgraded Solarfun Power Holdings (SOLF Quote) from neutral to sell but raised its price target from $17 to $20. In a note to clients, analyst Cheryl Tang said the stock's premium valuation is now unwarranted and she expects to see rising downward pressure on the bottom line, due to current pricing trends for wafers. Despite the downgrade, Tang raised her earnings estimates for the years 2008 to 2010 by 28%, 21% and 25%. Shares of Solarfun plunged 22% to $20.65 on extremely heavy volume.

NetEase.com (NTES Quote), a leading Chinese Internet and online game service provider, reported its first-quarter profits fell 10% due to higher tax charges from a new income tax law. The company said first-quarter net earnings were $38.4 million, or 30 cents per American depositary share, vs. $43 million, or 32 cents per share, for the same period a year ago. Total revenue jumped 18% in the first quarter to $93 million, vs. Wall Street estimates of $82.3 million. Shares of NTES sold off sharply by 6% to $22.60.