Sun power: inverter prices have bottomed out

  2012 PV installed capacity in the country is about 4.5GW the solar torch share remained at more than 30%; 2013, large domestic power plant installed at least completed 3.5GW, Golden Sun projects completed at least 2GW distributed contribution considerable capacity increase will also start The amount of total new installed capacity is expected to reach 8-10GW. At the same time, the attitude of the national grid of distributed photovoltaic grid positive forthcoming national electricity subsidies, clearing the way supporting policies, monocrystalline solar panel needs to start facing the bottleneck will soon be resolved. The inverter industry capacity greater flexibility, but after this round of adjustment, the inverter price reversal probability is small, the solar manufacturer industry supply and demand to maintain the balance will be maintained, sun power industry leading position and market share.

Overall the economy dragged down by the solar distributor industry, Sungrow 2012 performance decline. With the substantial growth of the domestic PV installed,the performance of the company will appear in their own capacity to fully release the reversal, we expect 2013-2014 EPS were 0.41 yuan, 0.63 yuan, corresponding to the current stock price PE of 27 times, 17 times, giving "recommended" rating.