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Investing.com - Chinese solar exports jumped significantly in August, with export volumes increasing 66% year-over-year, according to data highlighted in a recent BofA report. This surge comes as major U.S. solar manufacturer First Solar (FSLR) maintains strong financial health with a 15.39% revenue growth over the last twelve months, according to InvestingPro data.
The export value of Chinese solar components, including wafers, cells, and modules, rose 21% compared to the same period last year, continuing the positive trend seen in July when volumes increased 20% year-over-year.
BofA attributes the growth partly to improved demand in Europe and Asia, along with supply chain shifts that have resulted in increased wafer and cell exports to markets including India, Türkiye, Indonesia, and Ethiopia.
The report notes that India has proposed new regulations requiring mandatory use of India-made wafers under the ALMM starting June 2028, adding to previous requirements for cells beginning June 2026, potentially influencing future trade patterns.
U.S. solar module import volume declined 32% year-over-year in July after growing 13% in June, while U.S. solar cell imports surged 99% year-over-year in July, with Laos and Indonesia accounting for 41% and 40% of those imports respectively. First Solar has demonstrated resilience amid these market shifts, maintaining a gross profit margin of 42.76% and operating with moderate debt levels.
In other recent news, First Solar has been in the spotlight following its second-quarter earnings report, which showed adjusted earnings per share exceeding analyst expectations. The company also narrowed its 2025 guidance ranges while maintaining the midpoints of those projections. UBS has reaffirmed its Buy rating on First Solar, initially setting a price target at $255.00 and later raising it to $275. This increase reflects the application of an unchanged 18.5x multiple to the company’s estimated 2027 earnings, discounted at its cost of equity.
Additionally, UBS has named First Solar a top pick due to favorable IRS guidance on tax credit eligibility, which is seen as a positive development for the industry. JPMorgan also reiterated First Solar as a "top pick," emphasizing the potential positive impact of the upcoming RE+ conference and possible U.S. factory announcements. These developments highlight a period of optimism and strategic positioning for First Solar in the renewable energy sector. Meanwhile, President Donald Trump has criticized renewable energy sources, including solar, citing economic concerns.
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