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The four major Chinese solar panel manufacturers including Canada Solar (NASDAQ:CSIQ) US tax evasion by routing some of their operations through Southeast Asia, according to preliminary results from the US Department of Commerce investigation issued on Friday.
Canadian solar (CSIQ), shipping products through Thailand, will be subject to a tax of 16%, according to the results of the investigation, while JinkoSolar (NYSE:JKS), with a facility in Malaysia, which is believed to comply with tariff regulations; shares of both companies are rising sharply, +5.5% and +11.5% corresponding.
The name solar trades higher widely, with Enphase Energy (ENPH) and SolarEdge Technology (SEDG) leads the S&P 500, +6% and +5.2% corresponding; Other bulls include SunPower (SPWR) +4.5%Solar Maxeon (MAXIMUM) +5.9 %Shoals Technologies (SHLS) +6.3 %Array Technology (HUGE) +9.2%First Sun (FSLR) +0.6%.
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The investigation could prompt companies to spend more making their parts in the US or find alternative sources from elsewhere abroad to meet soaring demand for panels. Sun.
The report could herald additional solar tariffs, but not immediately, because in June the Biden administration implemented a two-year suspension of tariffs to give importers time. regulate and invoke the Defense Production Act to help US suppliers compete with Asian rivals and promote more domestic production of solar panels.
Industry groups warn government action will slow solar deployment in US
The Commerce Department will release the final results of the investigation in May after conducting an on-site audit of the companies and gathering public comments.
by JinkoSolar (JKS) “TTM’s compound annual revenue growth rate of more than 140% makes it a growth stock, [and] The three-year average revenue CAGR is 35.3%,” Motek Moyen wrote in a note Analysis recently posted on Seeking Alpha.
