Re: XSUNX Inc.
INVESTMENT CONCLUSION AND VALUATION
We believe XSNX?s stock will gain as the Company progresses toward commercial production of solar
cells and modules. The Company is moving in the right direction exploiting the opportunities in the thin
film solar PV market, which we believe will rapidly grow as it offers the lowest manufacturing cost
per watt at the module level and will likely maintain a cost per watt advantage over the more dominant
crystalline silicon-based modules. Even the current shortage of polysilicon is providing a competitive
edge to XSNX. Backed by a qualified and experienced management team, we believe XSNX will be able
to successfully place itself on the path of business growth and revenue generation.
We expect XSNX will be on a revenue-generating platform in 2QFY09 as the Company plans to initiate
commercial production of thin-film solar modules in 2QFY09. Thus, no revenues are expected for fullyear
FY08. For FY09, we anticipate XSNX to generate $57 million in revenue, assuming revenue at
$2.60 per watt.
At a recent market price of $0.44, XSNX?s stock trades at a P/S multiple of 1.38x of our estimated FY09
per share revenue of $0.32. We initiate coverage of XSNX with a ?Speculative Buy? rating and a 12-
month target price of $1.28, which is 4x P/S multiple of our FY09 sales estimate $0.32 per share. We
believe there is ample opportunity available for further expansion with the Company marching from the
development stage to commercialization of thin-film solar modules in 2QFY09.
Is there any newest conclusion for XSNX. It's seem that we need to hold 0.29-0,3 range to stay in play.
|
