UPDATE 3-Solarfun shares soar on strong results, bright outlook

* Ups 2010 shipment view to 650 MW

* Sees sequentially higher shipments in Q2

* Rev jumps to $216.2 mln vs est $191.7 mln

* Shares up 17 percent

* Sees ASP flat to up in Q2, falling in Q4
(Adds conference call, analyst comments; updates share

By Krishna N. Das

BANGALORE, May 26 (BestGrowthStock) – Solarfun Power Holdings Co
Ltd’s (SOLF.O: ) quarterly profit dwarfed market estimates and
the Chinese photovoltaic cell maker raised its full year
shipment view on strong demand, sending its shares up 17

The company, which upped its 2010 shipment view by more
than 8 percent to 650 megawatt, also forecast sequentially
higher shipments for the second quarter.

It expects to ship 160 MW to 170 MW in the second quarter,
above first quarter levels of 150.6 MW.

On a constant currency basis, Solarfun sees average selling
prices (ASP) to flat to up in the second quarter, rise in the
third quarter and fall in the fourth quarter, a company
official said in the conference call.

ASP in the first-quarter, excluding module processing
services, came in at $1.76 per watt.

“There would be an upside to Solarfun’s full year earnings,
because they will ship more than what they are predicting right
now,” Auriga USA analyst Mark Bachman said.

Solarfun shares rose to high of $7.33 in early morning
trade, before shedding some of the gains to trade up 13 percent
at $7.11 Wednesday on Nasdaq.

Solarfun, like others in the sector, has seen demand jump
this year as developers in Germany rush to build projects ahead
of the planned cuts to solar subsidies in the world’s No. 1
solar market in the second half of this year. [ID:nLDE60D273]

Given the booming sales, Solarfun had earlier this month
said it would increase its module capacity to 900 megawatts.


Germany-based customers accounted for over 80 percent of
Solarfun’s total net photovoltaic module revenues in the first
quarter, up from 57 percent in the fourth quarter.

Analyst Bachman said that the overriding problem for
Solarfun as of now is the exposure to the Euro, which has
chased away investors in the last few weeks.

Since the start of the month, shares of Solarfun have
fallen about 16 percent, more than double the percentage fall
of the Euro.

“We are taking very cautious approach and are trying to
diversify out of Europe,” a company executive said on the call,
adding that revenue contribution from non-German customers will
increase in the second half of the year.

For the latest first quarter, the company earned 35 cents
per American depository share (ADS), compared with a loss of 2
cents per ADS, last year.

Excluding items, the company earned 40 cents per ADS.

Total net revenue was up 115.7 percent at $216.2 million,
as PV module shipments more than quadrupled, comfortably
beating estimates of $191.7 million. [ID:nWNAB3683]

On Tuesday, China’s Trina Solar Ltd (TSL.N: ) had also
reported strong results as shipments had nearly quadrupled, and
said it anticipates further growth in the second quarter and
through the end of the year. [ID:nSGE64O0EV]

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(Reporting by Adveith Nair and Krishna N. Das in Bangalore;
Editing by Prem Udayabhanu)

UPDATE 3-Solarfun shares soar on strong results, bright outlook