NEW YORK (TheStreet) -- Shares of Trina Solar (TSL) are up 4.07% to $13.04 after it was reported that China's largest profitable panel manufacturer, agreed to buy a 90% stake in the power-plant developer Yunnan Metallurgical New Energy Co., Bloomberg reports.
The remaining 10% will be retained by the parent company Yunnan Metallurgical Group Co. and two of its units, Changzhou-based Trina said today. Terms of the deal weren't disclosed.
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Trina is expanding its efforts to build solar farms, including a 1-gigawatt project in the western Xinjiang region announced in December. Yunnan Metallurgical is developing a 300-megawatt solar plant in Yunnan province, with construction expected to begin this quarter, according to a statement.
"Developing strategic partnerships with select partners demonstrates our flexibility in exploring downstream opportunities in China," Jifan Gao, Trina's CEO said in the statement.
TheStreet Ratings team rates TRINA SOLAR LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRINA SOLAR LTD (TSL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."