Daqo Stock Soars 15% on Quarterly Revenue Growth
Shares of Daqo New Energy Corp. (NYSE: DQ) surged 15 percent Tuesday, closing at $35.88 per American depositary share, after the company posted financial results for the first quarter.
The Wanzhou-based maker of polysilicon and wafers for solar panels said in a statement today that its revenue in the first quarter declined 15 percent year-over-year to $81.2 million, but rose 7 percent from the preceding quarter.
Net income, Daco said, declined 80 percent from a year ago to $5.9 million, or 50 cents per ADS.
The company said during the quarter, its polysilicon facilities were running at full capacity and produced 8,764 MT and sold 8,450 MT of polysilicon. The company said it was able to reduce its total production costs and cash costs to $7.42/kg and $6.20/kg, the lowest level it has ever reached.
The chief executive officer of Daqo New Energy, Longgen Zhang, said in the statement, "We are currently undertaking a capacity debottlenecking project to gradually upgrade several older CVD furnaces with improved technology, allowing us to increase production capacity by additional 5,000 MT. This project is progressing well and we expect to complete the project ahead of schedule in early June 2019."
"We are optimistic about China's booming demand for solar PV in the second half of this year. Since May, the market conditions for polysilicon have shown signs of improvement as prices appear to have bottomed out." he said.
Looking ahead, the company said it expects to produce approximately 7,200 to 7,400 MT of polysilicon with total production cost of $8.0~8.5/kg during the second quarter of 2019 and sell approximately 7,100MT to 7,300MT of polysilicon.