JinkoSolar Turns It Around After Two Years of Losses

Solar rooftop installationJinkoSolar Holding Co. Ltd. (NYSE: JKS) reported second-quarter 2013 results before markets opened this morning. The Chinese solar panel maker reported adjusted diluted earnings per American Depositary Share (ADS) of $0.56 on revenue of $287.6 million. In the same period a year ago, JinkoSolar reported a loss of about $2.19 per ADS on revenue of about $202.3 million. Second-quarter results compare to the Thomson Reuters consensus estimates for a loss of $0.07 per ADS and $298.84 million in revenue. One ADS is equal to four ordinary shares.

Sequentially, revenues improved more than 51% and module shipments were up nearly 45%.

Second-quarter gross margin rose from 12.7% in the first quarter to 17.7%, and more than doubled from 8.4% in the second quarter of 2012.

For the third quarter JinkoSolar expects module shipments in the range of 460 to 500 megawatts. For the full-year shipments are forecast at 1,500 to 1,700 megawatts, up from a previous forecast of 1,200 to 1,500 megawatts.

The company's CEO said:

I am pleased to report JinkoSolar's first quarter of profitability since the third quarter of 2011. [W]e expect to realize net profitability for the entire year as we are confident that this quarter's strong operational and financial performance is indicative of our future performance. ... By the end of this year, we expect to complete solar power projects with total capacity in the range of 200-300 MW and our project pipeline is now rapidly approaching 700 MW. ... With the largest project development pipeline and scale domestically among US-listed Chinese solar manufacturers, we expect our downstream business to benefit greatly as we continue our strategic transformation.

JinkoSolar's results continue the upbeat trend in the solar panel market. Shipments have been increasing, margins are rising and project pipelines are filling up. The squabble over tariffs between China and the European Union is resolved, and Chinese solar makers are shipping modules into Japan at rising rates. Good news for one solar provider is typically good news for all, so look for some nice increases in solar stocks today.

JinkoSolar's shares are up about 11% in premarket trading, at $15.01 in a 52-week range of $2.36 to $15.05. Thomson Reuters had a consensus analyst price target of around $9.25 before today's results were announced.


Filed under: Energy (Business) Tagged: JKS

Increase your money and finance knowledge from home

Investment Strategies

What's your investing game plan?

View Course »

Investing in Startups

The lucrative and risky world of startups.

View Course »

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:
Alia Goff

I was searching for a stock market data feed that I could integrate onto my own website so that my visitors could view this information without leaving my site. I found plenty of feed providers, but only one proved to be reliable and accurate on a consistent basis – Barchart Market Data Solutions. Their feeds can include different types of data, including historical, raw exchange and others. The best feature is that you can personalize the feed to your exact preferences.

September 09 2013 at 10:47 AM Report abuse rate up rate down Reply