Chinese solar power manufacturer Trina Solar Limited (NYSE: TSL) is ablaze with double digit increases in net revenues, net income, operating income and the solar megawatt volume of units shipped. The company added 12 new customers in 2Q 2007 alone, and its manufacturing capacity is booked solid through the remainder of 2007. Good thing the company is in the midst of a tremendous manufacturing capacity expansion program. Currently, Trina Solar has a manufacturing capacity of 100 solar megawatts, set to increase by 50% to 150 solar megawatts by the end of 2007, and rise again to 350 solar megawatts worth of manufacturing capacity by the end of 2008. The sky really is the limit for Trina Solar.

Despite big increases in the cost of raw materials, Trina Solar's total net revenues in 2Q 2007 jumped 77% to $75.3 million, even though the average sales price dipped. Gross profit increased 49.5% to $14.2 million, and net income increased 51.4% to $7.2 million. Because Trina Solar is still in its start-up phase, operating expenses increased as did interest expense. Based on figures thus far reported in 2007, CEO Jifan Gao states FY net revenues will total $270-$200 million, and FY net income will be in the $34.5-$36.5 million range. Trina Solar has guaranteed contracts with suppliers for 90% of the necessary supply of polysilicon for 2007 orders, and 60% for 2008 orders. Trina Solar recently began dealings with various silicon reclamation companies to ensure a stable and moderately priced supply of necessary polysilicon to meet its present demand forecast.

In an odd state of affairs, most of Trina Solar's customers are in Germany, Italy, and Spain. The company does very little business in China. CEO Gao's remarks make no reference to this fact, only that climatic conditions and government policies make it easier to do business in southern European countries. Given China's unprecedented growth in demand for energy resources, one has to wonder why the Chinese government is so late coming to the solar-powered party.

There are a whole lot of things to like right now about Trina Solar Limited (NYSE: TSL), the Chinese manufacturer of solar modules. The stock opened the year at $18.86 and closed Wednesday, August 8, at $62.08. Not a bad run up. Yes, the company is basically a start up, being in production only since 2004, and investors must be able to tolerate a high level of risk with patience. But the company is expanding on a variety of fronts while still maintaining a healthy enough balance sheet. Trina Solar 1Q 2007 earnings release back in May indicated a very positive investment scenario (the 2Q release is scheduled for August 23).

Despite the fact that the 1Q figures pertained to the winter quarter, generally a slow time for solar technology companies, Trina Solar posted a 10% increase in net revenues, to $42.5 million, from the previous quarter, but a staggering 194% (not a typo) increase from 1Q 2006. Gross profits from the quarter increased 5.3% to $9.5 million, and net income increased 7.3% to $4.7 million. Bear in mind Trina Solar posted these figures despite higher prices for raw materials and a decline in per unit price. Demand for solar technology continues unabated. Trina Solar shipped 17% more units by volume in 1Q 2007 than in 4Q 2006. That increase in volume meant Trina Solar produced and shipped 300% more solar watts in 1Q 2007 than 1Q 2006, and has plans to accelerate increases in both unit and watt volume.

Trina Solar is still in a rapid expansion phase, as is only to be expected from a company dealing in newer forms of technology. The company recently completed testing on its new line of increasing efficient solar modules and plans to market these modules to new and existing customers in Germany, Spain and Italy. At full manufacturing capacity, Trina Solar expects to produce 50 million solar watts with this product line. CEO Jifan Gao forecasts that Trina Solar will ship 87-80 million watts worth of solar modules in FY 2008, generating net revenues in the $270-$300 million range. Perhaps the wider investment community will hear of Trina Solar during the 2008 Olympics in Beijing.