Solarfun Power (SOLF): Record Sales Contract "Incremental Positive"

Solarfun Power (SOLF), a Chinese manufacturer of photovoltaic (PV) cells/modules, announced it had entered into a 47 megawatt sales contract with Schüco International KG, a leading PV system provider in Europe. This is the company’s largest contract to date.

The 47MW of modules are to be delivered at fixed prices from December ’08 through October ’09. The modules will likely be installed in major projects in south-east Europe and the Middle East.

AmTech views this new deal favourably:

We view this deal as an incremental positive given the size of the deal at fixed prices providing some stability in fundamentals post September ’08. 47MW equates to ~15% of our 2009 production estimate. We view it as a positive that the contracted modules are to be used to a certain degree outside of Spain to grow new markets.

AmTech maintains NEUTRAL on Solarfun Power (SOLF).

See Also:
Solarfun Power (SOLF), Yingli Green Energy (YGE) and Others: 50%+ Exposure To Spain
Solarfun Power (SOLF): More Polysilicon, But Balance Sheet Problems Remain

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