Shunfeng Photovoltaic International Limited is making more noise, as it looks into tapping more financial resources for further expansion plans.
Bloomberg recently said Shunfeng has talked to five undisclosed banks about raising capital for future solar installations. Chairman Zhang Yi said he was excited for the future as he acknowledged the Chinese government is keen on clean energy for its energy mix.
Shunfeng is well known for taking control of LDK Solar and Suntech Power Holdings, which was the largest solar module manufacturer for a few years before collapsing on the back of a competitive market and financial scandal.
Zhang Yi also suggested its company can benefit from strong research & development, and firm cost-saving strategies.
In August, Shunfeng received 20 billion yuan ($3.3 billion) in credit from China Minisheng Banking Corporation. It’s expected the company will have 200 million yuan in borrowing expenses in 2014.
Financially, Shunfeng is in good shape, turning the corner. It’s stock has advanced by 53% in the last six months and made a profit of 502.5 million yuan ($81.81 million). Last year, it lost 670.8 million yuan ($109.34 million).
Shunfeng has some large-scale ambitions. It plans on building 10 GW worth of solar power plants by the end of 2016 and needs 25 billion yuan ($4 billion) to reach this target. Earlier this summer, CleanTechnica reported the company is planning to get into solar power plant development. This year, Shunfeng is aiming for 3 GW of installations, 2.4 GW for finished panels, and 2.2 GW of solar cells produced.
Is Shunfeng a solar stock to look at as it moves forward? Some investors could cast a doubtful eye on Chinese solar stocks, given turbulence in recent years. However, as recently discussed here on Solar Love, these stocks may give some upside potential in the future. Shunfeng will definitely be a stock to keep our eyes on in the near future.
