Emerging solar power product manufacturer,
JinkoSolar Holding Co., Ltd
), announced that it has won a contract to deliver 81 MW of
photovoltaic ("PV") modules at a fixed price to WBHO-Building
Energy (Pty) Ltd. ("WBHO-BE") for the development of a solar PV
park in South Africa.
The project is situated in Gamagara Local Municipality in the
Northern Cape Province of South Africa. Per the agreement,
JinkoSolar would supply a total of 344,540 PV high quality solar
modules to WBHO-BE. The project will be constructed, designed and
commissioned by WBHO-BE and is one of the first to be sanctioned
under the government's Renewable Energy Program.
The shipment of the PV modules is expected to conclude by late
2013, beginning in the first quarter 2013. With the completion of
the program, it will become the largest PV solar project in South
The solar program will have an output capacity of around 146
Gigawatt-hour ("GWh") and is anticipated to power about 12,000
homes. In addition, the project will help in reducing carbon
emissions of roughly 145,800 tons on an annual basis.
JinkoSolar has been aggressively expanding its business
footprint across Europe and Africa. The company at the end of
October 2012 supplied 5.7 MW of PV modules for the development of
an 11.6 MW solar power station in Starkenberg, Thuringia,
JinkoSolar was appointed as the principal module supplier as
well as technical support provider in an agreement with China
Jiangxi Corporation for International Economic & Technical
Co, Ltd. ("CJIC") for a 50MW solar power project in Kenya.
We believe these programs will certainly add value to
JinkoSolar's growth prospects. The constant support given by the
Chinese government to the company's domestic renewable energy
programs is also an encouraging sign. The company presently
retains a short-term Zacks #3 Rank (Hold rating).
Another Zacks #3 Rank solar product major,
MEMC Electronic Materials Inc.
), is also eyeing prospects in South Africa. This is evident from
its subsidiary, SunEdison's recent collaboration with Chint Solar
(China-based electrical appliance maker), the Public Investment
Corporation (Africa's largest investment firm) and the Kurisani
Youth Development Trust for the development of a 58MW solar plant
in the country.
The Zacks Consensus Estimates for the fourth quarter and
full-year 2012 currently stand at a loss of 83 cents and $6.02
per share, respectively. Owing to the tariff austerity and the
anti-subsidy tariff of 2.9% to 4.73% imposed in March 2012,
JinkoSolar will face difficulties in gaining traction in the
growing U.S. market, which will affect its earnings going
The beleaguered European economy will also remain an overhang
for the company's business prospects. Amid such a scenario, the
South African solar project remains the only glimmer of hope.
With a market capitalization of $140.21 million, Shangrao,
China-based JinkoSolar has 7,941 total employees.
JINKOSOLAR HLDG (JKS): Free Stock Analysis
MEMC ELEC MATRL (WFR): Free Stock Analysis
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