SLVEST has risen from 0.71 to a high of 1.06, just in a period of the last 5 trading days. The closing at 1.03 yesterday was its all time high. This is somewhat similar to Greattech and UWC - reaching all time high again and again since IPO. Could SLVEST be another UWC and Greatech in the making?
The two news below from Bloomberg might had been the reason of its price surge the previous weak.
https://www.bloomberg.com/news/articles/2020-02-03/china-solar-industry-seeks-government-aid-amid-virus-outbreak
https://www.bloomberg.com/news/articles/2020-02-06/china-solar-group-flags-raw-material-labor-shortages-on-virus
When China solar companies are not performing well, their orders could flow to Solarvest and hence, its price surge.
We believe that the only way for SLVEST is continue going up, at least until the Wuhan Virus case has cooled down. But not for now.
China Solar Group Flags Raw Material, Labor Shortages on Virus
Bloomberg News
February 6, 2020, 2:21 PM GMT+8
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Producers amassed just enough material for 1-3 months: CPIA·
China’s overseas plants may be unable to receive components
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China’s solar industry is facing potential raw material and labor shortages amid efforts to contain the coronavirus, curbing their ability to resume full production.
Manufacturers run a higher risk of shortages should factory shutdowns be extended, according to the China Photovoltaic Industry Association, citing feedback from companies. This could raise production costs and increase cash flow pressure.
Producers had stockpiled just enough raw material for one to three months before the new year holiday as they weren’t prepared for such extended closures, Liu Yiyang, deputy secretary-general of the industry group, said in a phone interview Thursday.
Read similar warning about outlook from China’s steel industry here
While some companies have kept parts of their production lines running during the holiday, many could struggle to resume full production as travel restrictions lead to a shortage of workers, Liu said. The movement of solar material and components is also a challenge.
The association has been seeking feedback from solar companies over the impact of the virus on their supply chains. More than a dozen Chinese provinces have extended the new year break until Feb. 9.
Analysts including Fitch Solutions Inc. and Wood Mackenzie Ltd. have forecast that panel prices will climb if production is affected significantly beyond the next few months. This could erode profit margins of developers and threaten growth.
Overseas Plants
Smaller companies are more likely to be affected by the disruptions, Liu said. Furthermore, some northern provinces have idled large solar farms owned by private operators due to weaker industrial demand, worsening their cash flows, Liu added.
Some overseas manufacturing plants could also be hit as they will be unable to receive components from China given flight restrictions, he said.
The association has called on the government to support the industry, including delaying tariff cuts for solar power and providing subsidies or interest-free loans.
LONGi Green Energy, one of China’s biggest solar companies, has said it sees no significant impact on its panel sales and production. It kept its shipment targets for the year unchanged. Tongwei Co., another top manufacturer, has restarted operations at its production base in Chengdu, Sichuan.
China Solar Industry Seeks Government Aid Amid Virus Outbreak
Bloomberg News
February 3, 2020, 2:26 PM GMT+8
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Association proposes tariff cut delays and interest-free loans·
Virus is threatening solar industry development: CPIA’s Liu
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China’s leading solar association called on the government to provide support to the industry as measures to contain the outbreak of a virus are hampering the restart of manufacturing activity.
The China Photovoltaic Industry Association is asking policy makers to delay tariff cuts for solar power, deputy secretary Liu Yiyang said Monday. The group is also seeking subsidies or interest-free loans for manufacturers to help ease their cash flow pressure, he said.
The requests come as more than a dozen Chinese provinces have extended the new year holiday until the end of Feb. 9 in a bid to halt the spread of the virus that has killed hundreds of people and sickened thousands. Investors are trying to quantify the impact of the disruptions, including a slowdown in construction activity as workers struggle to return from their home cities.
“The sudden epidemic is affecting the pace of development of the solar industry,” Liu said in a phone interview. He added that it’s “highly likely” the government will delay the tariff cuts, but it’s unclear how long it will be.
The next cut in tariffs for unfinished solar projects approved for 2019 subsidy quotas is expected at the end of March. China has been scaling back financial support to the solar industry as it pushes for renewable energy to compete economically with conventional power sources such as coal and natural gas.
Shares Slump
Shares of Chinese solar companies tumbled Monday as onshore financial markets reopened after the Lunar New Year break. Tongwei Co., the world’s biggest solar cell maker by capacity, fell 10% in Shanghai. LONGi Green Energy Technology Co. slipped 3.3%.
CPIA is also asking the government to reduce taxes and fees for solar manufacturers, and for financial institutions to extend interest payment dates to help cushion the hit from the virus, Liu said.
The association is evaluating the impact on solar production and shipments, and is gathering feedback from companies. It will submit the findings to authorities in the next few days, Liu added.
https://klse.i3investor.com/blogs/changwt/2020-02-08-story-h1483731816-_SOLARVEST_Another_UWC_and_Greatech_in_the_making.jsp
