JKS

[admin]

publish chart | backtests Type: candle | line | advanced    Timeframe: intraday | daily | weekly | monthly Settings

JKS [NYSE] JinkoSolar Holding Co., Ltd.

Thats a mighty rise, and equally mighty fall. That spring sun, just like the weather in Europe, has to wait for another moment, apparently..

[admin]

Any substantial dip offers an opportunity to buy, as an end of the solar cycle doesn't seem in sight any time soon. They also consider selling off their higher margin project business. The news did little for the stock price today, which went down with the rest of the solars and the market.

JinkoSolar Holding Co. (JKS), a Chinese solar manufacturer, is considering a possible spinoff or public share sale for its project unit to help expand the business. Separating the unit from manufacturing operations will aid growth and benefit JinkoSolar shareholders, the Shangrao-based company said today in a statement. It expects the subsidiary to have 500 megawatts of installed capacity by the end of the year.

Jinkosolar Considers Selling Off Solar Project Business - Bloomberg

[admin]

Running away today (+12% at $34.5 at the moment)

Monday, Mar 3

7:02 PM

JinkSolar sells off in spite of Q4 beat

• A Q4 beat and fairly healthy guidance weren't able to prevent JinkoSolar (JKS -6.1%) from selling off today. The Chinese solar module vendor expects 2014 shipments of 2.3GW-2.5GW, up from a 2013 level of 1.77GW. Shipments for seasonally weak Q1 are expected to total 440MW-470MW.
• 533.3MW of modules were shipped in Q4, beating guidance of 500MW-530MW. Gross margin rose to 24.7% from 22.3% in Q3 and a mere 3.8% a year ago.
• Jinko says it now has a pipeline of 700MW worth of utility-scale solar project, and 400MW worth of distributed solar projects. The company connected 108MW of systems to the grid in Q4, and recognized $4.9M in electricity revenue.
• Q4 results, PR, CC transcript

[admin]

• After a monumental rise the last two years, shares in JKS still have further to run.
• There are considerable risks, but we think these are outweighed by the opportunities.
• The solar market is expanding, less dependent on subsidies, and panel prices and margins still move in the right direction.
• And big opportunities lie in distributed and utility scale projects, these enjoy much higher margins and are not cyclical.

JinkoSolar Holding Co., Ltd. (JKS) news: Opportunities And Risks For JinkoSolar - Seeking Alpha

[admin]

Stock price under some pressure lately, the following article sums it up, but is too gloomy:

One of the key driving forces behind the solar boom has been the abundance of cheap Chinese-manufactured panels. Well, rising input costs — the cost of energy needed to run solar panel factories — along with supply constraints are lifting prices for Chinese-produced PV. According to Boston-based green think-tank GTM Research, the price of Chinese-made solar panels will rise about 20% this year. And already, the price rise is beginning to take shape. According to its latest report, GTM shows that Chinese solar producers like JinkoSolar (JKS) have priced their modules at 80 to 85 cents per watt for new deliveries. That compares to just to 70 cents per watt at the end of 2013.

The Sun Is Setting for Chinese Solar Stocks | InvestorPlace

They cite other factors:

• Trade issues with the EU and the US
• Shale gas revolution in the US
• A cut in Japanese solar feed-in tariff
• China might not make it's 14GW 2014 target (by far the largest market in the world)

And indeed, Trina and Yingli issued warnings, but consider the following quote from Barrons:

But Trina Solar can still beat expectations, says Nomura Securities. This is because Trina Solar raised its gross margin guidance from the mid-teens to 18-20%, even as the company lowered its shipment guidance. Here is analyst Nitin Kumar doing the numbers for us: Prior to Trina’s latest update, we had expected 1Q14F external module sales of 725MW with margins of 16.2% (Trina’s original guidance: Shipments – 670~700MW; GM – midteens) for a net profit of USD17.4mn. Based on the new guidance update, we now see external shipments of 567.5MW along with a 50MW project sale in China for a gross margin of 19.7% (Trina’s new guidance: Shipments – 540~570MW; GM – 18~20%). This translates into earnings of USD27.1mn for 1Q14F as per our estimates. Note: Lower shipments have a corresponding reduction in SG&A as shipping charges are included in SG&A.

Trina Solar: Q1 Could Beat Despite Guidance Cut, Says Nomura - Emerging Markets Daily - Barrons.com

For years, there was a solar slump with steeply falling prices. Then these stabilized, margins improved, and the stocks shot up. But now prices are even rising and margins expanding, that doesn't seem the recipe for a solar crash to us..

[admin]

JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company" (NYSE: JKS), a global leader in the solar PV industry has announced that it will supply 38.7 MW of PV Modules to EDP Renovaveis, a leading Independent Power Producer (IPP) in the global renewable energy sector, for two solar parks in San Bernadino County, California.

JinkoSolar to supply 37.2MW PV Solar Panels to EDP Renovaveis for Lone Valley Solar Park in the U.S. - SolarPVInvestor

[tojo]

Anyone seen this?

Could this be the beginning of the next chapter in solar PV market?

“We have some customers that have already built plants and that currently receive very good FiT from the third and fourth Conto Energia that are switching from the FiT to a PPA. This is a good sign for the market; the PPA business model works very well,”

http://www.pv-tech.org/news/some_italian..._contracts

[admin]

No I hadn't seen that, thanks for the heads up, quite interesting. Demand has been rather soft in Europe so perhaps a shift in business model can revive the market.

[admin]

Reason for sell-off today, but I think this should be mostly priced in already as there were earlier reports of China perhaps not making its 14GW target this year:

Solar stocks clocked due to Chinese worries, tech selloff

• Chinese solar demand fell to just 1GW in Q1 from 6GW in seasonally strong Q4, writes Deutsche, which was upbeat about local solar activity at the start of the year.
• Deutsche believes Q2 installations will be in a 3GW-4GW range, and (following talks with Chinese solar firms) and thinks 2GW is a more realistic target for 2014 Chinese distributed solar installations than the government's 8GW target. A 14GW target has been set for total installations (8GW distributed, 6GW utility)
• The Deutsche report comes a couple days after Bloomberg reported the Indian government has deemed foreign solar firms (inc. U.S. and Chinese companies) guilty of dumping products, a move that raises the possibility of tariffs. Though still much smaller than China's solar market, the Indian market has been growing quickly.
• Solar stocks (TAN -3.6%) are underperforming amid a market selloff. Notable decliners: JKS -7.5%. SCTY -6.1%. TSL -5.4%. CSIQ -5.3%. YGE -4.9%. CSUN-4.7%.
• Daqo (DQ -9.8%) is especially hard-hit after pricing its 2M-share secondary offering (previous) at $29.

[admin]

Lest one forget, JKS is the Chinese market leader, and with all the disappointment over the development of that market it's worthwhile to keep in mind what the company issued just a week ago:

JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company" (JKS), a global leader in the solar PV industry, today announced that it reaffirms its guidance for the first quarter of 2014 and full year 2014: total solar module shipments are expected to be in the range of 440 MW and 470 MW for the first quarter of 2014 and total solar module shipments are expected to be in the range of 2.3 GW to 2.5 GW, with total project development scale expected to be above 400 MW for the full year 2014.

JinkoSolar to Reaffirm Guidance for the First Quarter of 2014 and Full Year 2014 and to Report First Quarter 2014 Results on May 27, 2014 - Yahoo Finance