This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

China Clean-Tech Stocks: Sustainable Growth

Stocks in this article: TSLYGESOLLDK

Trina Solar (TSL), Yingli Green Energy (YGE) and Suntech Power (STP) are three leading China clean-tech companies that are set to outperform this quarter.

All these companies are poised to grow as China's investments in renewable energy increased to $11.48 billion in 2009 from $163 million in 2002, representing a CAGR of 84%. Investments were mainly targeted toward wind and solar photo-voltaic projects. Moreover, investments are forecasted to grow to around $42.25 billion in 2015.

Another player, China Sunergy (CSUN), a manufacturer and seller of solar cells, reported its first-quarter results on April 30. Revenue was $104.3 million, up 181.9% year over year. Earnings stood at $7.11 million or 18 cents per share, surpassing consensus estimates of 10 cents per share.

Subsequently, the stock gained 6% in trade, closing at $4.80 on Friday. The stock has surged 17% in the last two trading sessions. It is trading at an attractive forward PE of 11.57, indicating further upside in the near future.

We reckon that this growth rate will be sustained and the companies involved in this business will be major beneficiaries as a result of this surge. In addition to the above-mentioned stocks, we present another four that are leveraged to this growth story and could be multi-baggers in the future. They include:

Solar wafer manufacturers ReneSola (SOL) and LDK Solar (LDK), and manufacturer of PV solar cells JA Solar Holdings (JASO) and Solarfun Power (SOLF).

ReneSola, JA Solar and Trina Solar are expected to report their results on May 10, May 11 and May 25, respectively.

According to analysts polled by Bloomberg, ReneSola is expected to report first-quarter 2010 revenue of $196.0 million, representing a year-over-year growth of 83.0%. Earnings are estimated at 13 cents per share compared to a loss of 22 cents per share a year ago.

JA Solar is expected to report revenue of $265 million, representing a year-over-year growth of over 600%. Earnings are forecasted at 18 cents per share compared to a loss of 18 cents per share a year earlier.

Trina Solar's revenues are anticipated to be $323 million, representing a year-over-year growth of 145%. Earnings are estimated at 61 cents per share compared to a loss of 42 cents per share during first-quarter 2009.

China Heading in Right Direction

According to a report released by GBI Research titled "Renewable Energy Investment Opportunities in Emerging Economies," Financial investments in renewable energy in emerging countries surged from $1.76 billion in 2001 to $65.86 billion in 2009, growing at a CAGR of 57.6%.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs