Enphase Energy Inc (NASDAQ:ENPH) shares broke out on Monday, with the stock finally breaking back above its 50-day simple moving average for the first time since late July. The move came on an uptick in volume. The principal catalyst was the company’s announcement that it has partnered with BayWa r.e. Solar Systems Co., Ltd., a leading solar photovoltaic (PV) distributor globally, to distribute its seventh-generation Enphase IQ microinverters to installers across Southeast Asian countries including Thailand, Vietnam, the Philippines, Singapore, Indonesia, and Malaysia.
According to the release, BayWa r.e. will ship Enphase’s IQ 7 microinverters across the region from two of its warehouses located in Thailand. This has obvious implications from an operational expansion perspective, and has already impacted the stock substantially.
Enphase Energy Inc (NASDAQ:ENPH) bills itself as a company that, together with its subsidiaries, designs, develops, and sells microinverter systems for residential and commercial markets in the United States and internationally.
The company’s semiconductor-based microinverter system converts direct current (DC) electricity to alternating current (AC) electricity at the individual solar module level.
It also offers energy storage systems, including its AC battery; and energy monitoring and control services.
The company sells its microinverter systems primarily to distributors, as well as directly to large installers through original equipment manufacturers and strategic partners. Enphase Energy, Inc. has a strategic partnership with Panasonic Corporation of North America for the development of AC modules.
The company was founded in 2006 and is headquartered in Petaluma, California.
According to company materials, “Enphase Energy, a global energy technology company, delivers smart, easy-to-use solutions that connect solar generation, storage and management on one intelligent platform. The Company revolutionized solar with its microinverter technology and produces the world’s only truly integrated solar plus storage solution. Enphase has shipped over 17 million microinverters, and more than 790,000 Enphase systems have been deployed in over 120 countries.”
A Foothold in Asia
As we discussed earlier, ENPH just announced that it has partnered with BayWa r.e. Solar Systems Co., Ltd., a leading solar photovoltaic (PV) distributor globally, to distribute its seventh-generation Enphase IQ microinverters to installers across Southeast Asian countries including Thailand, Vietnam, the Philippines, Singapore, Indonesia, and Malaysia.
This announcement has popped the stock higher, which certainly isn’t surprising. ENPH shareholders are now sitting on about 7% in gains over the past week, with basically all of that coming on Monday.
“We are looking forward to working with BayWa r.e. on a strong launch into Southeast Asia,” said David Ranhoff, chief commercial officer at Enphase Energy. “The solar market in Southeast Asia has great potential for Enphase, particularly in the small- to medium-sized commercial rooftop market segment. We believe Enphase’s unique value proposition of high-output performance and flexible installation, as well as a safe low voltage all-AC system architecture will resonate well.”
Enphase Energy Inc (NASDAQ:ENPH) managed to rope in revenues totaling $75.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 1.6%, as compared to year-ago data in comparable terms.
In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($58.5M against $114.6M, respectively).