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.

Trina Solar (TSL) a beacon to investors originally appeared on BloggingStocks on Sun, 26 Aug 2007 11:40:00 EST. Please see our terms for use of feeds.