LDK Solar Company Ltd. ADRLDK

Morningstar Rating

Stock Research and Analysis

by Stephen Simko

LDK Solar has burst onto the scene to become a major player in the manufacturing of solar wafers. Commencing production in mainland China during 2006, the company has seen its sales and profits increase so rapidly that LDK has already become one of Read more

Bulls Say

The solar industry is expected to continue growing rapidly in the future, which should fuel plenty of demand for the solar wafers that LDK manufactures.

In its limited history, LDK has executed very well with respect to rapidly expanding the capacity of its production and operations. Read more

Bears Say

Solar wafer capacity is far above demand, and significant pricing pressures are currently hurting LDK's profitability.

The solar wafer industry is capital-intensive and will suffer from overcapacity as additional competitors come on line in the next few years.

The solar industry depends on large subsidies for up to 50% of total installed system costs. Any pullback in worldwide subsidies could have a profound effect on current demand. Read more

Strategy

LDK is attempting to become a vertically integrated wafer manufacturer, by owning the entire value chain from silicon production to solar wafer processing. The company hopes to achieve significant cost Read more

Management

LDK Solar was founded by 32-year-old Xiaofeng Peng in July 2005. Prior to founding LDK, Peng founded Suzhou Liouxin, a manufacturer of personal protective equipment in Asia. Peng currently owns roughly 71% of LDK while acting as both CEO and chairman. Read more

Profile

LDK Solar is a Chinese pure-play manufacturer of silicon-based solar wafers. Solar wafers are the primary raw material used in solar cells, which convert sunlight into electricity. Read more

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