Investors are concerned that a steep equipment cycle downswing could take place, given that up to 12GW of new manufacturing capacity in the solar sector could be added this year.
According to Commerzbank, Manz has managed to capture a significant portion of new orders because of its “leading high-efficiency selective emitter equipment”. The firm recently announced it had received orders for its technology, dubbed OneStep, from Bosch, Conergy and Yingli, and that all three of these customers will introduce the technology into their pilot production lines over the coming months before launching it into mass production.
However, visibility for 2011 is very limited. Commerzbank says that almost all new orders call for immediate shipment, so there is no backlog building for next year. “We understand that, in particular, Chinese customers have outlined great capacity ramp-up plans, but following through on these plans might become difficult,” said Robert Schramm, an analyst at Commerzbank.
A downturn in the purchasing of equipment used to manufacture solar devices could also have a negative effect on fellow German firms, Centrotherm Photovoltaics and Roth & Rau, both of which focus on making equipment for the solar sector.
Manz’s share price fell 12.3% during May, ending the month at €45.80.
Market: Frankfurt
Symbol: M5Z
Price: €45.80
12 month high/low: €71.66/€38.06
Market cap: €207m
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