Jinko Solar Q2 2014 Results

Jinko Solar (JKS), one of the best Chinese Solar companies has proven itself by giving the best quarterly result. The company is vertically integrated across the solar chain. The company has a strong geographical presence and has an annual capacity of 2 GW for silicon ingots, wafers, and solar cells each and ~ 2.1 GW for solar panels as of March 2014. Jinko Solar has a customer base across USA, Europe, China, India, Japan, South Africa.

Jinko Solar’s revenues have increased in the current quarter by 20.8 % to $ 329.1 million, from in Q1 2014. Total shipments also showed an increase from 581.2 MW in Q1 2014 to 659.5 MW in Q2 2014, representing an increase of 13.47%. The company gave a continuous fifth quarter of profitability with 22.6% gross margin in Q2 2014. The company completed 252 MW of solar projects and has another 100 MW of solar projects under construction in the third quarter. Also the electricity revenues generated from solar projects was $ 9.8 million, representing an increase of 26.1% from ~ $ 7.8 million in the first quarter of 2014.

Jinko Solar is currently trading at $ 29.10 and has outperformed competition like ReneSola (SOL), Yingli Green Energy (YGE) and Trina Solar (TSL). The company gave a robust future outlook, with total solar module shipments to be between 800 MW and 850 MW in the third quarter of 2014 and between 2.9 GW and 3.2 GW for the full year 2014. Given its good performance, geographical diversification, strong Chinese support and solar business, I would recommend buying the stock.

“I am pleased to report our fifth consecutive quarter of profitability, as we confidently look towards the second half of the year,” commented Mr. Kangping Chen, JinkoSolar’s Chief Executive Officer. “We gained considerable momentum during the quarter. Total revenues increased 20.8% sequentially and 37.8% year-over-year. We expanded our geographic reach, secured financial support from globally-respected financial institutions for our downstream business and solidified our position in important emerging markets where we have made strategic investments such as South Africa and Latin America.”

Source: Jinko Solar