文档介绍：April 20, 2009 Y. Edwin Mok • emok@ • 415-262-4896
Solar PV Technology / Clean Technology
LDK Solar Co. Ltd. (LDK) – Hold
LDK: Near-Term Challenges Overshadow Long-Term Potentials; Initiating Coverage with
a Hold
We are initiating coverage of LDK Solar Co., Ltd. with a Hold rating Coverage Initiation
and a fair value of $10 per share. As the largest solar wafer
manufacturer with substantial economies of scale, we believe LDK
Market Data
has the lowest polysilicon-to-wafer conversion cost in the industry.
Over the long term, we believe bination of LDK's low cost Price (04/17/09) $
operation with its own polysilicon supply is a winning strategy; 12-Month Price Target N/A
however, pany will need two years to fully realize the 52-Week range $-
benefits of producing its own polysilicon. Based on our belief that Shares Out. (MM)
solar demand will remain muted through 2009, we believe Market cap (MM) $
consensus estimates are too aggressive. We anticipate downside Avg. daily volume (000) 2,
adjustment to estimates. Based on our conservative estimates, the Financial Data
shares are trading in line with its solar peers. Therefore, we believe Total Debt/Cap. %
the risk/reward is balanced, and we mend investors wait for
Price/LTM Rev.
a reset of Street estimates before getting aggressive on the name.
Tangible BVPS $
Net Cash Per Share ($)
• LDK has the lowest polysilicon-to-wafer conversion cost in the
industry. LDK has e the largest solar wafer producer in
production and capacity. We believe LDK has ~8% cost advantage in
wafering, which will e more important as polysilicon prices fall. LDK Solar Co., Ltd. is the largest
• We believe owning a polysilicon supply is a winning strategy for multicrystalline solar wafer manufacturer in the
LDK, but it limits rebound in margins in the near term. We believe world. LDK focuses on the design,
LDK is making progress with its po