Yingli Green Energy

Yingli Green Energy (YGE:NYE)

Renewable energy stocks and solar stocks in particular were impacted negatively this month amid reports from Reuters that Germany will cut its Solar Financial Support.

German regulators have proposed a reduction in the country's feed-in tariff for roof-top and ground-based installations. The proposed 15% reduction is greater than the 10% reduction previously expected and comes three months earlier than forecast. This news in addition to a weaker stock market and Euro, has resulted in a 20% decline in US-listed solar module vendors since January 13th 2010.

The reduction in the German Solar Financial Support may result in a modest impact on worldwide module demand during the first half of 2010, particularly in Germany but, given declining module prices, the demand should increase again strongly over the next few years.

This dip in prices gives us a great buying opportunity to get into this rapidly growing sector. Low-cost suppliers such as Yingli will be able to supply modules at low price points and should continue to grow profits strongly.

Yingli Green Energy Holding Company Limited was founded in 1998 and is headquartered in Baoding, the Peoples Republic of China. The company and its subsidiaries engage in the design, development, marketing, manufacturing, installation, and sale of photovoltaic (PV) products in the People's Republic of China and internationally.

Its products include multicrystalline polysilicon ingots and wafers, PV cells, PV modules, and integrated PV systems. These products are incorporated into solar energy systems that turn sunlight into clean energy. The company, with an annual production capacity of 400 megawatts of polysilicon ingots and wafers, 400 megawatts of PV cells, and 400 megawatts of PV modules, is one of the few companies in China involved in all stages of PV manufacturing, sales, and installation.  Yingli sells PV modules under its own brand name, Yingli Solar, to PV system integrators and distributors located in various markets around the world, including Germany, Spain, Italy, South Korea, Belgium, France, China and the United States. It also sells to installers and other value- added resellers and to mobile communications
service providers in the People's Republic of China.

Yingli has completed various large projects in Europe and China over the past few years, such as the China National Brightness Project in 2002. It cooperated with Solar-Energiedach GmbH NL in the design and installation of a 1MW PV system covering the roof of the Kaiserslautern soccer stadium in Germany, one of the 2006 FIFA World Cup venues. At the end of 2006, Yingli signed a 42MW contract with Acciona Energy to help build the world's largest solar plant in Moah, Portugal.

Yingli completed its Initial Public Offering on the New York Stock Exchange on June 8, 2007. In 2009 the company was the first Chinese Company to receive the most prestigious financial award in the renewable energy industry - "Equity Deal of the Year - Technology" award in recognition of the company's successful June 2009 equity follow-on offering of 18,390,000 ADSs which helped to raise investors' confidence in the renewable energy sector.

On January 13th 2010 Yingli announced that it has received through its US subsidiary, Yingli Green Energy Americas, Inc.a tax credit of US$4.5 million from the USTreasury Department, as part of its Recovery Act Advanced Manufacturing Tax Credit program ("MITC program"), for the Company's planned establishment of manufacturing operations in the United States. According to the U.S. Department of Energy, tax credits under the MITC program are focused on putting Americans back to work by building a robust domestic manufacturing capacity to supply clean and renewable energy projects with American-made parts and equipment.

Yingli Green Energy is currently evaluating several potential sites for its planned 100 MW module manufacturing facility, which will also serve as its North American headquarters for operations and research and development. The Company expects to select a location shortly and begin production later in 2010. Much of the manufacturing equipment used for production and testing will be procured from US companies and assembled in the United States.

"We are pleased to have been selected as a recipient of tax credits under the MITC program," commented Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. "Establishing a manufacturing presence in the United States will enable our company to better serve our local customers and build upon our existing commercial relationships. The tax credits we received will positively contribute towards making these domestic operations sustainable for our customers, employees and community."

"The tax credits we received will accelerate our momentum in the US market," added Mr. Robert Petrina, Managing Director of Yingli Americas. "Our North America Center of Excellence will serve to facilitate the collaboration we enjoy with our commercial partners and reduce time-to-market for newly developed innovative products designed to drive down the cost of solar power generation. We look forward to advancing our contribution to the growth of the domestic green economy."

This is a company with a bright future in China and Internationally. We can take advantage of the lower stock price right now to buy into a company that has excellent growth prospects for the medium to longer term.

Buy Yingli Green Energy (YGE:NYE) up to $15