Singulus lowers outlook after delayed CNBM order
Sep 10, 2019 08:57 PM ET
- The German PV equipment provider will not achieve the sales and earnings targets set for this year. CNBM is not expected to place orders for the expansion of its CIGS thin-film production operations in China until the fourth quarter.
The China National Building Materials Group (CNBM) has told German PV equipment supplier Singulus it plans to continue expanding its CIGS thin-film module production capacity – but not until the fourth quarter.
The strategy was agreed in Shanghai by representatives of Chinese state-owned CNBM and the management board of Singulus Technologies AG.
The resulting delay in signing contracts and in the receipt of down payments from the major Chinese client has forced the Singulus board to revise down its guidance for this financial year. Previously stated sales and EBIT targets will no longer be achievable, the equipment maker said.
Before the announcement, Singulus was aiming for sales of €135-155 million, with EBIT of €6-11 million. In the first half, Singulus generated a small net profit of €1.6 million.
CNBM is now producing its CIGS thin-film modules in Bengbu, China and has taken over rival Avancis, whose factory in Meishan will be commissioned in the coming months. The state-owned manufacturer is sticking by plans to further expand CIGS production capacity in China and plans to commission production lines in other Asian countries.
A major client for Singulus, CNBM also raised its shareholding in the German supplier to almost 17% at the start of the year.