In a recent transaction, Shah Capital Management, led by Chairman Himanshu H. Shah, acquired a significant number of shares in Emeren Group Ltd (NYSE:SOL). The firm purchased a total of 58,921 American Depositary Shares (ADS) over two days, December 12 and 13, 2024. The shares were bought at a price of $1.77 each, amounting to a total transaction value of approximately $104,290. According to InvestingPro data, this purchase comes as the stock trades significantly below its 52-week high of $3.00, with shares down nearly 35% year-to-date.
These transactions, conducted through the Shah Capital Opportunity (SO:FTCE11B) Fund LP, increased Shah Capital Management's total holdings to 18,801,383 ADS in Emeren Group. The acquisitions were made at a price inclusive of commission, as noted in the filing. Shah Capital Management is a substantial stakeholder in Emeren Group, reflecting its confidence in the company's prospects. InvestingPro analysis indicates the stock is currently trading at an attractive Price/Book ratio of 0.29, with management actively buying back shares. Subscribers can access 11 additional ProTips and comprehensive financial metrics through InvestingPro's detailed research reports.
In other recent news, Emeren Group Limited reported a strong third quarter, with revenues reaching $12.9 million and a net income of $4.8 million. This performance was largely driven by a significant foreign exchange gain and robust contributions from the Independent (LON:IOG) Power Producer (IPP) segment and the Development Service Agreement (DSA) model. Despite experiencing operational challenges and delays in European government project approvals, Emeren is predicting strong revenue growth for the fourth quarter and the upcoming year.
The company's gross margin was at 43.8%, with the IPP segment contributing $9.4 million to the revenue. Emeren has also secured significant battery energy storage contracts in the U.S. and anticipates revenue exceeding $69 million from 28 projects over the next 2-3 years. The company's Q4 2024 revenue is projected between $40 million and $45 million, with full-year guidance revised to $97 million to $102 million.
Emeren expects an EBITDA of $15 million to $20 million for the year and over $50 million for 2025. These recent developments underscore Emeren's commitment to expanding its renewable energy initiatives, despite the challenges posed by delays in government approvals and potential impacts from U.S. policy changes related to the Inflation Reduction Act.
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