Sunshine Power: rapid growth benefiting domestic PV installed

Domestic policy or exceed expectations, we expect the State Council, Ministry of Finance, the Ministry of Industry, Energy Bureau, power grid companies and other ministries will continue to support policies, subsidies, trade access and other policies, the second half of the domestic market will be bigger than expected, industry fundamentals or substantial improvement.

With the gradual implementation of specific policies, we believe that 2013 domestic capacity or exceed expectations, the annual installed capacity is expected to 13GW, compared 3.7GW installed capacity increased significantly. Such inverter market will increase to 5.2 billion yuan, representing an increase of 180% in 2012.

Inverter power station leading to fully benefit the western yields significantly. With the value-added tax by half, the introduction of preferential policies of land, the western ground station internal rate of return (IRR) has now risen to 13.8%, with grid conditions improve, the western ground station enthusiasm remains high, the sun power as the western ground station inverter with charger will fully benefit from the leading western power station installed capacity growth.

In 2011 the company accounted for the domestic market share of 38% of the inverter, in 2012 more than 30%, according to optimistic forecasts 2013 installed 13GW, the company estimated that 30% of the market share, the company shipments will reach 3.9GW, an increase of 178% above. Even in the pessimistic expected, the installed capacity of 10GW, company shipped reached 3GW, there is still an increase of 114% or more.

Results markedly thickened mattress mining company EPC business packet mode, reference to the market building - into the model, we believe that: a) the transfer station will be counted the main business income. 2) engineering and dc to ac inverter income payments will be credited to this report. 3) transfer of beneficial revitalize the company's cash flow, while significantly thickened margins. 100MW power plant which is expected to be able to confirm this year, 70% of revenue, in accordance with the cost of 9.5 yuan / W to measure, is expected to confirm income 770 million yuan this year, net profit rate of 8%, and this year will contribute about 60 million net profit.