Solarfun Power Holdings Co. Ltd. (NASDAQ: SOLF) shares spiked by 8% after the company posted its second-quarter earnings and announced a strategic investment from Hanwha Chemical.
Solarfun earned $40.2 million or 69 cents per ADS (American depository share) in second-quarter revenue, more than doubling from the prior year to $258.5 million. Adjusted EPS was 59 cents, more than double the 25-cent consensus analysts had predicted.
The company also announced that South Korea’s Hanwha Chemical will acquire a 49.99% stake in SOLF for $370 million, a 4.6% premium to Monday’s closing price, according to Reuters. Hanwha Chemical will acquire 36,455,089 SOLF ordinary shares at 14.51 RMB, or $2.144 USD per ordinary share, or $10.72 per ADS, for proceeds of $78 million.
SOLF will use the cash to fund plans for expansion and for general corporate expenses. Hawwha will also acquire all 120,407,700 additional ordinary shares and 1,281,011 American Depositary Shares held by investment firm Good Energies II LP and by Yonghua Solar Power - a company owned by Solarfun chairman Yonghua Lu.
On completion of the deal, Hanwha will get three of the solar company’s seven board seats.
For the third quarter, Solarfun said it expects to see shipments of 210-220 MW.
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BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.
Beacon Equity Group Disclaimer
This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
