Few ways to look at the situation but we will only come to know for sure in the coming quarters –
-
Management has entered the business prior to ADD and has stated earlier that they are cost competitive against Chinese imports and the only difference is coming primarily from incentives given by Chinese government.
-
Management has guided earlier that is not such an easy product to master and that even internationally they have a superior product, also it took BoroRenew a few years to achieve production efficiency. Given the current changes it is possible that other domestic manufacturers that are coming up with capacities now will suffer more that BoroRenew.
-
They have stated that duty ranges from 10% to 60%, this is a huge range and suggests that they might be some imports that can be sold at half the price? If that is true then definitely this is doom and gloom situation for company.
-
Even currently the company is competing in export market possible against Chinese imports, they are holding their ground there, how?
-
Cost of freight is still exceedingly high globally, could this help mitigate the difference in production costs?
In hindsight it seems to have been a very weak investment on all our parts if the entire thesis was based on ADD continuing. I will wait for the management commentary and see what is happening. If anyone has any scuttlebutt opportunities to find out glass prices from module manufacturers and how this might impact the industry would be very useful info!
Disc – Invested and have been adding, but will hold further decision till situation is clearer…
| Subscribe To Our Free Newsletter |
