ABTrades1
Nov 3, 10:40 AM
$TOYO The earnings nobody is counting yet (1/3)
TOYO's plant in Texas makes solar modules. Under Section 45X every watt made and sold in the US earns a federal tax credit of 7 cents, on top of the price the customer pays, and the credit can be sold for cash.
The plant has 2 GW of capacity. The first line started in October 2025 and the second was finished this fall. At full output 2 GW is
$140M of credit a year. The whole company was worth about
$202M at Monday's close of
$4.72, so at full output the credit alone is 69% of the market cap, every year.
For comparison,
$FSLR expects
$2.1B of the same credit in 2026, which is 45% of its sales, most of its gross profit, and 11% of its market cap. For TOYO the same credit is 69% of the company.
On July 21 TOYO said a third party tax firm reviewed the plant's production and sales and that it expects to qualify from 2025. 2025 was only one quarter of output, so 2026 is the first full year.
(1/3)
0 replies
