Investing Chinese Solar - Solarfun Power Holdings

The hard beaten Chinese Solar stocks are attracting investors attention again with crude oil price has gradually climbed back above $90 per barrel.  Many of these Chinese Solar companies that used to be traded in double digits are getting attractive again with many of them traded in single digit and low P/E ratio.  So far we've looked at JA Solar and LDK Solar, lets look at another solar stock today.  


Solarfun Power Holdings (Nasdaq:SOLF) is a supplier of photovoltaic cells and photovoltaic modules with vertically-integrated facility in China.  The solar cell maker only earn annual revenue of $630 million in 2006 but the next year quadripled to $2.4 billion and doubled the following year to its peak to $4.9 billion in 2008.  The global financial storm brought the revenue down a little bit to $3.7 billion in 2009 and the year 2010 should be record high with earning of $5.4 billion so far for the first three quarters.  And after consecutive years of net loss in 2008 and 2009, Solarfun should swing to net income in 2010 as for the first three quarters the company has already earned $386 million in net income.  


Shares of Solarfun Power used to trade as high as $38 back in late 2007 early 2008.  The stock sank to all time low of $2 per share in 2009 during the financial crisis and has gradually climbed back  toward double digit this year.  At $9.26 per share and market cap of $538 million market cap, the stock is still attractive with P/E ratio of 9.8.  The technical chart shows the stock is about to swing back to uptrend as 20 day moving average is about to cross on top of 50 day moving average.   KD lines also shows positive signal as both KD lines are going up.  At the current trend expect the stock to keep going up for the next two to three months.