Company Update (NASDAQ:CSIQ): Canadian Solar Inc. Realizes Commercial Operation on 19.1MWp Solar Power Plant Just Outside of Tokyo


Canadian Solar Inc. (NASDAQ:CSIQ) sounded off today on having attained commercial operation on its project in Japan: a 19.1MWp Gunma Aramaki solar power plant roughly 100km shy of the busy hub of Japan, Tokyo.

The Gunma Aramaki solar power plant is powered by 59,544 Canadian Solar’s CS6X MaxPower solar panels. The plant is expected to generate approximately 23,830MWh of clean solar power per year, which will be purchased by Japan’s largest energy utility, Tokyo Electric Power Company Holdings Inc. (TEPCO), under a 20 year feed-in-tariff contract at the rate of JPY36.0 ($0.32) per kWh.

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Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar shared his two cents, highlighting: “In 2017, we reached commercial operation on over 100MWp of solar power projects in Japan. Our 19.1MWp Gunma Aramaki project is the first of our two projects in the Gunma prefecture to have reached commercial operation. Today, we have successfully developed solar power plant projects in over 19 prefectures, further enhancing the geographic diversity of the operating portfolio we have developed across Japan.”

Earlier on April 3, 2017, Canadian Solar revealed it had raised JPY 5.4 billion for the Gunma Aramaki project through a dual-tenor green project bond, the first of its kind in Japan. The project received an investment grade rating of “A” from the Japan Credit Rating Agency.

“This project represents a high-quality growth opportunity for Canadian Solar Infrastructure Fund and this innovative financing structure preserves the option for the Fund to acquire this operational asset in the future,” further commented Dr. Qu, who first founded the solar panel maker 16 years prior, since going on to become one of the leading solar power companies in the world.

Shares of Canadian Solar closed yesterday at $16.88. CSIQ has a 1-year high of $19.09 and a 1-year low of $10.86. The stock’s 50-day moving average is $17.59 and its 200-day moving average is $16.50.

On the ratings front, Canadian Solar has been the subject of a number of recent research reports. In a report issued on December 15, Axiom analyst Gordon Johnson downgraded CSIQ to Hold, with a price target of $17, which represents a slight upside potential from current levels. Separately, on December 12, J.P. Morgan’s Paul Coster downgraded the stock to Sell and has a price target of $15.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Gordon Johnson and Paul Coster have a yearly average return of 1.0% and a loss of -3.8% respectively. Johnson has a success rate of 54% and is ranked #2445 out of 4726 analysts, while Coster has a success rate of 43% and is ranked #4480.

Overall, one research analyst has rated the stock with a Sell rating, 4 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $19.86 which is 17.7% above where the stock closed yesterday.

Canadian Solar, Inc. engages in the design, development, and sale of solar photovoltaic modules. It offers solar ingots, wafers, cells, modules, and other solar power products. It operates through the Module and Energy segments. The Module segment designs, develops, manufactures, and sells solar power products and solar system kits. The Energy segment consists of solar power project development and sale; engineering, procurement, and construction and development services; operations and maintenance services; and operating solar power projects, and sales of electricity. 

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