Shah Capital Management, led by Chairman Himanshu H. Shah, recently made significant purchases of American Depositary Shares (ADS) in Emeren Group Ltd (NYSE:SOL). On December 18 and 19, Shah Capital acquired a total of 16,853 ADS, valued at approximately $29,785. The shares were bought at prices ranging from $1.76 to $1.77 each, representing an attractive entry point given the stock’s 34% decline year-to-date. According to InvestingPro analysis, the company currently trades at just 0.29 times book value. Following these transactions, Shah Capital Management now holds 18,818,236 ADS in Emeren Group. The purchases were made through the Shah Capital Opportunity (SO:FTCE11B) Fund LP. With a market capitalization of $91.75 million and analysts setting price targets between $3 and $7, InvestingPro subscribers can access 12 additional key insights about Emeren Group’s valuation and growth prospects through the comprehensive Pro Research Report.
In other recent news, Emeren Group Limited has reported strong Q3 results, with revenues of $12.9 million and a net income of $4.8 million. This positive performance was largely due to a significant foreign exchange gain and robust contributions from the Independent (LON:IOG) Power Producer (IPP) segment and the Development Service Agreement model.
Despite facing operational challenges and delays in European government project approvals, Emeren projects a promising revenue outlook for the fourth quarter and the upcoming year. The company anticipates significant EBITDA contributions from both the IPP and DSA segments. Furthermore, Emeren has secured substantial battery energy storage contracts in the U.S., expecting revenue exceeding $69 million from 28 projects over the next 2-3 years.
The company has revised its full-year revenue guidance for 2024 to $97 million to $102 million and forecasts a Q4 2024 revenue of $40 million to $45 million. For 2025, Emeren is guiding an EBITDA of over $50 million, with significant contributions expected from European projects. The company remains focused on expanding its renewable energy initiatives and sees its strategic partnerships and strong financial foundation as key drivers for future growth in the solar industry.
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