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Daqo New Energy Corp DQ

Daqo New Energy Corp. is a polysilicon manufacturer. The Company utilizes the chemical vapor deposition process, or the modified Siemens process, to produce polysilicon. The Company's segments include Polysilicon and Wafer. The Company manufactures and sells polysilicon to photovoltaic product manufacturers, whereby the polysilicon is processed into ingots, wafers, cells and modules for solar power solutions. The Company offers ready-to-use polysilicon, packaged to meet crucible stacking, pulling and solidification needs. The Company offers wafers through its downstream photovoltaic product manufacturing business. The Company also provides wafer original equipment manufacturer (OEM) service to external customers through tolling agreements by processing polysilicon to produce ingot and wafer. Its annual capacity for polysilicon is approximately 12,150 metric tons (MT) in Xinjiang. The Company's wafer manufacturing annual capacity is approximately 90 million pieces.


NYSE:DQ - Post by User

Post by ROIcrusaderon Sep 11, 2023 10:26am
111 Views
Post# 35629257

Modern Shovel Maker w Deep value?

Modern Shovel Maker w Deep value?So, what's the deal here?

Solar has a very positive outlook, this company supplies the raw materials for Chinese companies.

2.7b market cap
3.2b CASH (most generated in 2022 2.4b) ... in total $41/share of cash
no debt
buying back another 10% of float this year and would expect that to continue yoy (this year was a 700m buyback plan for approx 20% of float) as they have said they will continue to buy back shares if they feel they are undervalued.


Geopolitical and Single market risk: China. 
New suppliers coming online increased competition reduced Avg Sell Price by 50% (but still healthy margins).

What am I missing? I feel like this name has deep value considering the cash on hand is literally higher than the market cap. 

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