Daqo New Energy Clocks 60% Revenue Growth In Q4

Daqo New Energy Corp DQ reported fourth-quarter FY21 revenue growth of 59.7% year-on-year to $395.5 million.
The company attributed the 32% sequential decline in revenues to lower polysilicon sales volume.
Margins: The gross margin expanded by 1,640 bps Y/Y to 60.6%.
The EBITDA margin expanded by 1,700 bps to 63.5%.
Adjusted earnings per ADS of $1.97 improved from $1.02 last year.
Daqo held $724 million in cash and equivalents.
Longgen Zhang, the CEO, said, "In the fourth quarter of 2021, we produced 23,616 MT of polysilicon, including 1,111 MT from our newly-built Phase 4B facility, and we sold 11,642 MT."
"Despite the strong increase in raw material cost during the fourth quarter, most of this cost increase was passed to our downstream customers, as ASPs for the fourth quarter increased to $33.91/kg, compared to $27.55/kg in the third quarter."
Outlook: Daqo sees Q1 FY22 polysilicon production of 31,000 MT - 32,000 MT.
Daqo sees FY22 polysilicon production of 120,000MT - 125,000MT.
Price Action: DQ shares closed higher by 2.98% at $42.92 on Friday.

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