Cleantech Shares Rise on $3.2 Million in Orders

Andrew Klips |

As the markets pull-back from a broad rally last week spurred by Congress agreeing on a bill to avert the fiscal cliff, declining stocks are plentiful with two out of every three NYSE-listed companies jettisoning points in Monday morning trading.  An advancing Nasdaq play this morning Cleantech Solutions (CLNT), a Wuxi, China-based maker of metal components and assemblies primarily used in wind and solar applications as well as a manufacturer of dyeing and finishing equipment for the textile industry.

Shares are up about 10 percent to $4.46 in the first hour of trading on the back of news of $3.2 million in new orders for dyeing machines from new and existing customers.  A total of 84 machines, including 22 airflow-dyeing machines were ordered.  Cleantech expects to deliver the units in February.

The airflow machines feature a Cleantech patented technology that utilizes air in the dyeing process, rather than water, as customary in tradition dyeing machines.

"We are excited to off start the new year with strong sales momentum from our airflow-dyeing machines. We remain optimistic about the ongoing replacement trend within the textile industry and are confident about enlarging our customer base with our proven quality products and services," said Mr. Jianhua Wu, Chairman and CEO of Cleantech Solutions in today’s corporate statement.

In the third quarter of 2012, Cleantech’s revenue increased 48.5 percent to $17.3 million, compared to $11.7 million in the third quarter of 2011.  During Q3, revenue from the company’s dyeing and finishing equipment segment grew 84.8 percent to $7.5 million from $4.1 million in the year prior quarter.  Net income for the third quarter of 2012 was $2.4 million, or $0.88 diluted earnings per share, compared to $1.1 million, or $0.46 diluted earnings per share, in the third quarter of 2011.

Shares of CLNT were as low as $2.03 in July 2012, but have been climbing since, including recent highs of $5.50 per share early in December.  Across a volatile 2012 that featured huge price swings for the stock (and cleantech plays in general), shares advanced about 25 percent.

The cleantech sector has been widely publicized for a mass exodus in venture capital in the past year.  Solar plays got a big boost recently, though, as Warren Buffett’s Berkshire Hathaway (BRK.A) pumped $2 billion into two solar power plant projects. Chinese companies have also faced strong headwinds as the nation’s economy slowed to single-digit growth in last year, although data late in the year is indicating that growth is starting to ramp upward again.

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Companies

Symbol Name Price Change % Volume
CLNT Cleantech Solutions International Inc. 0.88 0.10 12.71 32,619
MNOV MediciNova Inc. 7.45 -0.13 -1.72 84,913

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