Hong Wei the stock price dropped from 33 to 3 SunEdison tells PV enterprises

Polaris solar PV net news: talking about 2015 solar stocks high platform diving champion, people would have thought that Han could one day plunge 47% because it has not resumed trading, so the Championship is among the SunEdison. Its stock price fell from the highest $ 33.45 on July 20 last year to its lowest $ 2.65 on January 14 this year.


Hong Wei: the stock price dropped from $ 33 to $ 3 SunEdison tells PV enterprises?

Hotel reviews China PV companies, industry will inevitably talk reviews United States famous PV companies, old red really special someone. In addition to language barriers, but because SunEdison impression in the trade, is the world’s first scale, was continued merger and acquisition cases, is using Yildco and other financial means of the superb financial management techniques to all Chinese PV industry, the classic joke.

SunEdison now has a new classic, and that’s why 2009 MEMC $ 200 million acquisition was North America’s largest solar energy services provider SunEdison company, in 2013, just after muyizigui changed its name to SunEdison, the past three years, SunEdison sudden force, had been progressing by leaps and bounds in a high profile, but just in the past six months, investors its comments by leaps and bounds is the stock price dropped 90%.

On what grounds? What is this high dive show wants to tell the Chinese PV industry?

For the reason, SunEdison’s former Chief Strategy Officer considered: “capital markets stock PV value and associated with traditional fossil energy market downturn.” But this is clearly wrong, because Chinese PV companies Canadian solar, jinko’s stock price at the same time trend, is denied any such conclusion. Discussion of SunEdison’s slump in share prices, or to look for problems of their own.

SunEdison did over the past few years?

The past few years, SunEison in the full flowering of the market, made several influential, classic:

Large-scale photovoltaic power plant. MEMC company with more than 40 years of history, its Silicon business to 2008 has been developing weakness and sluggish stock prices, 2009 following the acquisition of SunEdison start solar power plant investment business, sending its shares finally began to rise from $ 1.44. SunEdison through capital by means of yieldco, in the rest of the world through direct investment and mergers and acquisitions, including expanding the holdings of large photovoltaic power plant. July 2014, for example to buy United States scale 336MW photovoltaic power generation enterprise, June 2015 in South Africa have made 457MW plans, become sub-Saharan zone developed one of the leading manufacturers of solar energy. August 2015 said “SunEdison now has 8.1 gigawatts total projects and growing business. “What’s interesting is, SunEdison’s earnings analysis more often than other similar enterprises to introduce PV power plant growth.

Actively into wind power generation, energy storage market. In addition to investing in photovoltaic power plant in the past three years, SunEdison’s expansion in new energy direction is also fast and broad in scope. November 2014 and its subsidiary TerraFormPoweryieldco invested $ 2.4 billion acquisition of United States wind energy developer FirstWind, Hawaii, New England, and some small high price the market has built more than 1 gigawatt of wind power assets. This acquisition makes TerraForm in becoming the world’s second-largest yieldco company at the same time, also makes the SunEdison became the world’s largest renewable energy developers. March 2015 SunEdison company providing energy storage photovoltaic integrated systems of the United States SolarGridStorage acquired the business and assets of the company, “became the world’s first provides photovoltaic power generation, wind power generation and energy storage of three business enterprise.”

By strategically India PV market in the world. January 2015 SunEdison announced the injection of 4 billion US dollars in India building’s largest photovoltaic manufacturing plant. Yieldco TerraFormGlobal, Chief Executive of the company said: “the SunEdison is India’s major players. This strategy has been a foregone conclusion. We have been to India’s Prime Minister promised, starting from February 2015 in span of seven years, 15.2GW. ”

Take advantage of Yiedco financial instruments. Any rapid expansion of enterprises must be combination of constant capital and, in addition to known outside the capital means, SunEdison most major capital of the stories associated with the Yieldco of innovative financial products. In early 2014, SunEdison to United States Securities and Exchange Commission registration statement transmitted to the create yieldco. On July 18, the start of the subsidiary TerraFormPower yieldco in Nasdaq trading, initial public offering of 20 million shares, shares of $ 25 per share, with a total turnover of US $ 500 million, SunEdison holding TerraForm64% shares. Born from the Yieldco that day, it frequently appears in almost all SunEdison’s expansion, becoming one of its major development strategies.

Centralized, distributed PV market full flowering. SunEdison is a successful utility investors, but it does not meet, said as early as July 2014, SunEdison will dabble in smaller projects, “and is expected to double size distributed solar projects this year and next.” July 2015 it was announced to us $ 2.2 billion in cash, stock and convertible bonds to buy United States largest household PV developer VivintSolar company. This enables SunEddison 4,000 new employees, 523MW rooftop PV projects portfolio, was attacked by SunEddison distributed market. On the SunEdison’s Chief Strategy Officer, has said “we want to build the future of the world’s largest energy companies. ”

No matter how SunEdison’s future results, the above facts are sufficient proof, it is a human law for renewable energy development, has a clear means to become the industry leader, with the largest capital enterprises. Just for this strategic model, evaluation of the trade, what are the financial results?

Evaluation of SunEdison and financial data

In the PV industry, if there is no systematic and thorough tracking and research, SunEdison is distinguished look.

In the PV industry abroad, commented: SunEdison Solar module production, large-scale photovoltaic power generation, photovoltaic power generation, energy storage, distributed wind a lot, even for relatively new business such as microgrids are involved, it is obviously trying to cover every aspects of renewable energy. Comments: Although comments SunEdison business model in the long-term success too early, but this way the risks should not be overlooked.

In any case they say, since the choice of continuing expansion strategy, how to balance size, debt, the financial result is that each choice the same enterprise development strategy must be to answer the question. SunEdison faced roughly the past three years the business and liabilities


Hong Wei: the stock price dropped from $ 33 to $ 3 SunEdison tells PV enterprises?

Curing on funding. Buy assets such as wind energy, energy storage to not speak, only relevant information about 8 GW held SunEdison photovoltaic plant assets, according to a recent “2014 World’s largest photovoltaic power plant units of kilowatt cost of RMB 9644~26660 Yuan/kW” take the middle number, this part about curing the funds of at least 140 billion yuan of assets, that is, more than 20 billion dollars.

On the debt. 2015 second-quarter financial statement analysis said that SunEdison has tens of billions of dollars of debt (with information about 11 billion), and that its cash and cash equivalents of approximately $ 1.3 billion. Its financing costs more than 10% also said, although as high as SunEdison’s friends say there is no, but old red know United States financing costs are closely related to the enterprise’s credit level.

Enterprise must make up a story, but capital markets need is one thing, how to tell a story, how to listen to the story of the capital market is another emotion. Story to happy, the story is not to have the opposite effect, in this regard, the Chinese share prices “5.20” crash 47% is a description. SunEdison’s photovoltaic industry is probably a good story, to capital markets as if it’s not a good story, when human it acquired China PV VivintSolar respect for eye look when the United States capital markets people cast a vote against, its result is a rapid fall in share prices after July 20. In contrast, the plunge in Chinese share prices seems to be a cause, its earnings still look good after all, SunEdison is less unjust, because its earnings are not good.

SunEdison wants to tell the Chinese PV industry

SunEdison will happen tomorrow? SunEdison’s friends said they will try to get out of trouble. Understanding United States PV market friends said may go bankrupt. Old red said: only on the current shares of SunEdison and Yieldco slump, will inevitably lead to financing difficulty of it for some time, just as they lose the hematopoietic function inevitably into a kind of virtuous circle. SunEdison with confidence, at least in the short term, we must hear the SunEdison new, ever-expanding, one exciting story.

The old saying: look for lively, adept road. For people in the PV, SunEdison trying to chop out all the stories in the past, and not care about the result, but on what the reason for results. Especially for those who are facing too many development opportunities, being confused in the PV industry in China, even if the moment should speed development of reason cannot be found, if you can find a reason to not be speeding development is also important.

Old saying says: happy family happy reason is always the same, unhappy families are unhappy for reasons that are not the same. In the photovoltaic industry, may not seem like it, unhappy for reasons that seem the same. This is the reason why SunEdison is not so happy now, PV enterprises, China will inevitably see some not-so-happy in the past for similar reasons: high asset liability ratio! Over the past more than 10 years China PV industry development process, you’ll be amazed: large scale PV companies died because of bad market without, debt to asset ratio is too high because of market prosperity and dead people.

PV industry, especially the end markets are capital intensive industries, is the powerful pull of policy, is a space full of imagination, the future market opportunities and rapidly growing industry. In this industry, there is no financial sense no, there are no financial awareness financial mobilization ability not there doesn’t mean the financial ability to mobilize the financial control also. Financial control lies in financing capacity and enterprise scale, ability to balance development strategy, speed, also in a higher ratio of assets and liabilities of positive and non-positive.

From industry thought capital thinking, are each to entrepreneurs in the PV industry achieve the required courses. But capital is a double-edged sword, in the PV industry in China today, happy was: continue to hold the photovoltaic power station, will the assets into listed companies, rolling development through refinancing has become solar entrepreneurs pattern thinking. Worry is: expanding PV market opportunities, and build the future of the Internet, asset-light, large data energy service providers, it makes too much solar entrepreneurs flap ripples, thirst for capital to stop. Solar products is always a stop in which, writing PV enterprises capital story is live or die.

People with high ideals, but realize the lofty ideal, it must be with this person realize the lofty ideal of combining ability, doing business as well. Not, reality and vision are separate. Now, SunEdison current fall is falling here.

“We to build Earth Shang maximum of future energy company”, SunEdison is a has great ideal of company, can last year July, dang it completed has let industry amazing and applauded of on VivintSolar acquisition of when, dang it judge: “acquisition VivintSolar will makes we of value turned 3 times times” of when, it of shares is select has from 33.45 dollars to 2.65 dollars of way fell.

“We want to build the future of the world’s largest energy company,” SunEdison’s Chief Strategy Officer could ever dream of, and not every country’s solar entrepreneurs dream? SunEdison’s trajectory, licencing is not the track some Chinese PV companies have. It warned PV is: once the overextended, the result is not their own. In this way, sinovideo has passed, Yingli is walking, SunEdison will not be the last. Especially in the current China PV industry, another would drive people crazy is when.

Where do all want first, especially in the Internet economy. Economies of scale of the PV industry, financial awareness, financial mobilization capacities also became the first of the necessary means. Unfortunately SunEdison financial means are successful, industry first was unsuccessful. It was not successful, does not deny the existence of success. How to make capital means success, industry’s first successful, must be the SunEdison wants to tell all PV companies looking to make great a tragic story is taking place.

References:

United States solar giant SunEdison announced debt restructuring shares fell nearly 40% in a single day

The SunEdison intending to sell to TerraForm Global 425MW India property

The SunEdison completed FirstWind acquisitions into the world’s largest renewable energy developers

The SunEdison acquisitions FirstWind added “good horse” asset

The MEMC proposed $ 76 million acquisition of Solaicx

The SunEdison MEMC to subsidiary name

United States developer SunEdison injected $ 4 billion in India to build largest solar photovoltaic manufacturing plant

The improvement MEMCSunEdison cases of corporate governance

SunEdison business model of the disadvantages of early risk can’t be ignored

The SunEdison in South Africa made of 457MW construction

The SunEdison plunge: the photovoltaic boom is just a fad? 》

United States SunEdison photovoltaic power generation business of buying 336MW

The SunEdison solve the financing problem

The SunEdison million acquisition of energy storage systems to speed up development of PV power station

The SunEdison photovoltaic sector revenues surged in the second quarter 168% solar energy reserves of up to 3.4GW

Transformation of the business model of the United States SunEdison2013 year Q4 PV project hits new high

Analysis report on China new energy: solar electricity cost five years of 50%

Hong-Wei

The January 18, 2016

Original title: SunEdison shares dropped from 33 to 3 dollars to tell what PV enterprises?

Posted in Solar Charger.