Yingli Green Energy Holding Co Ltd (ADR) (NYSE:YGE), one of the world’s leading solar panel manufacturers, today announced that it will change the ratio of its American Depositary Shares (“ADSs”) to ordinary shares, par valueUS$0.01 per share (“Shares”) from one (1) ADS to one (1) Share to one (1) ADS to ten (10) Shares (the “Ratio Change”). The effective date of the Ratio Change is expected to be December 28, 2015.
Each shareholder of record at the close of business on December 28, 2015 will be required to exchange every ten (10) ADSs then held for one (1) new ADS. The effect on the ADS price will take place on December 28, 2015.
For Yingli Green Energy’s ADS holders, the Ratio Change will have the same effect as a one-for-ten reverse ADS split. There will be no change to Yingli Green Energy’s underlying Shares. ADS holders will be required to surrender their existing ADSs in exchange for new ADSs of the Company. No new Shares will be issued in connection with the Ratio Change.
JPMorgan Chase Bank, N.A. will contact ADS holders and arrange for the exchange of their current ADSs for new ADSs. As a result of this Ratio Change, the ADS price is expected to automatically increase proportionally, although the Company can give no assurance that the post-change ADS price will be equal to or greater than the pre-change ADS price multiplied by the ratio.
The Company believes that the Ratio Change is in the best interests of its shareholders as it will assist the Company in regaining compliance with the minimum average closing price continued listing standard of the New York Stock Exchange. However, the Company can give no assurance that this goal will be achieved upon the effectiveness of the Ratio Change. (Original Source)
Shares of Yingli Green Energy Holding closed yesterday at $0.6106, up $0.04 or 7.94%. YGE has a 1-year high of $2.47 and a 1-year low of $0.33. The stock’s 50-day moving average is $0.67 and its 200-day moving average is $0.81.
On the ratings front, YGE has been the subject of a number of recent research reports. In a report issued on November 25, Roth Capital analyst Philip Shen maintained a Sell rating on YGE, with a price target of $0.31, which reflects a potential downside of -49.2% from last closing price. Separately, on September 10, Credit Suisse’s Patrick Jobin maintained a Sell rating on the stock and has a price target of $0.75.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Philip Shen and Patrick Jobin have a total average return of -7.9% and -0.8% respectively. Shen has a success rate of 32.3% and is ranked #3507 out of 3645 analysts, while Jobin has a success rate of 33.3% and is ranked #2506.
Yingli Green Energy Holding Co Ltd along with its subsidiaries is engaged in the design, development, marketing, manufacture, installation and sale of photovoltaic products in China & overseas market.