SMA Solar had just turned the corner after years of losses. The Hesse-based company’s stock price had climbed 238 percent and shareholders took home a dividend for 2015, marking the first time in two years.
Then the Chinese solar market collapsed, dragging down SMA Solar’s stock price with it. As of Thursday, the company’s share price has dropped 9 percent to just €37 from €50 at the start of 2016.
As the world’s leading manufacturer of photovoltaic inverters, SMA Solar is particularly sensitive to fluctuations in the the world’s largest solar market, China. Photovoltaic inverters turn the direct electrical current from solar panels into an alternating current for electrical outlets.