Growth rates excite at Jetion Holdings, the Chinese solar cells-maker chaired by fêted entrepreneur Dipesh Shah. Floated on AIM last summer at 151p, the company reported sales of $106.9m for 2007, an increase of 135%, from which ‘adjusted’ pre-tax profits burgeoned from $5m to $11.2m – year-end net cash was robust at $8.4m.

A major annual highlight was the doubling of solar cell production capacity to 50MW per annum, a figure the ambitious Shah plans to double again by October. Jetion is also increasing the proportion of solar cells it converts into higher-margin modules – solar module capacity was expanded to 40MW per annum – a trend enabling the company to get closer to European end-users and develop its brand. In yet further encouragement, Jetion’s joint venture, formed with two European distributors, is already profitable and is boosting product demand in the key Western European solar market, where Spain is a notable hot spot.

In other astute moves, the commissioning of Jetion’s own wafer-slicing machines has underpinned its requirements for quality silicon wafers, while the negotiation of silicon raw material supply deals, signed at discounts to prevailing market prices, means this year’s production requirements are covered.

‘Demand for Jetion products has continued to outstrip supply,’ insists Shah, who points to punditry, suggesting the solar industry will grow rapidly in 2008. For 2008, house broker Collins Stewart forecasts dramatic sales growth to $185m, profits of $20.1m and earnings of 12p, placing Jetion on a miserly prospective p/e of only nine times. Given its staggering forecast growth rates – and decent liquidity for an AIM stock – growth company investors with a hankering for a renewable energy story should climb aboard.

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Jetion Holdings	AIM	£23.38m	31.50p	0.00p
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