Daqo New Energy Announces $100 Million Share Repurchase Program

Daqo New Energy Corp. has announced a share repurchase program to buy back up to $100 million worth of its ordinary shares or American depositary shares. The program will be funded primarily with existing available cash and is valid until December 31, 2026.

Daqo New Energy Corp. (NYSE: DQ), a leading manufacturer of high-purity polysilicon for the solar photovoltaic industry, has announced a $100 million share repurchase program. The program, effective immediately, will run through December 31, 2026, allowing the company to repurchase its own issued and outstanding ordinary shares or American depositary shares through various means including open-market purchases, negotiated transactions, block trades, or other legally permissible methods.

The company, currently valued at $1.54 billion, maintains a strong balance sheet with more cash than debt and a healthy current ratio of 5.62 [1]. The stock, trading at just 0.37 times book value, has shown strong momentum with a 22.94% gain year-to-date. Daqo plans to fund the repurchases primarily from its existing cash balance. The program does not obligate the company to acquire any specific number of shares at any particular time, and the board will review the program periodically with potential adjustments to its terms and size.

"The share repurchase program reflects our confidence in the Company’s business prospects as we navigate the current industry downcycle," said Xiang Xu, Chairman and Chief Executive Officer of Daqo New Energy [1]. The company stated that the timing, quantity, and price of any repurchases will depend on operational performance, market conditions, and compliance with corporate governance and regulatory requirements, including applicable blackout periods.

In other recent news, Daqo New Energy Corp. reported its second-quarter revenue, which significantly missed analyst expectations. The solar industry is currently facing challenges such as overcapacity and pricing pressures, which have impacted the company’s financial performance. Despite these hurdles, Daqo New Energy remains a key player in the polysilicon manufacturing sector [2].

References:
[1] https://www.investing.com/news/company-news/daqo-new-energy-announces-100-million-share-repurchase-program-93CH-4210790
[2] https://seekingalpha.com/news/4489136-daqo-new-energy-announces-100m-share-repurchase-program