JA Solar Holdings Company Ltd.
) announced plans to develop three solar power projects in
eastern China's Hebei province. Located in Xingtai City's
Lincheng, Neiqiu and Xingtai counties, these projects will have a
capacity of 300 megawatt (MW) in total.
JA SOLAR HOLDGS (JASO): Free Stock Analysis
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JA Solar - the largest solar-cell producer by capacity - has
already attained approval for the first 50 MW in the Lincheng
County project. The company expects to receive development rights
for Neiqiu and Xingtai counties by the end of this year.
JA Solar caters to a geographically diversified pan-continental
customer base, which spans Germany, Italy, the U.S., Spain,
India, Korea, China and Japan. The company also effectively uses
its locational advantage in China, with Chinese low-cost solar
module manufacturers contributing a substantial portion of its
Chinese solar product manufacturers, like JASO,
LDK Solar Co. Ltd.
Suntech Power Holdings Co. Ltd.
), are facing the impact of anti-dumping duties being imposed in
the U.S. The U.S. Department of Commerce (DOC) rolled out these
tariffs to tighten the Chinese solar-products supply in the U.S.
and encourage domestic players to tap the growing renewable U.S.
U.S. solar markets are gradually becoming less lucrative for the
Chinese solar module manufacturers. The company also saw
declining revenues for six consecutive quarters due to poor
demand and a global supply glut of wafer and module that resulted
in falling average selling prices.
In such a backdrop, we expect domestic contract to bring some
relief to the company's growth prospects.
With global demand for renewable energy growing due to its clean
nature, increasing prices of fossil-fuels and growing awareness
among the masses regarding its benefits, utility providers are
trying to shift their mode of power generating operations to
wind, solar and water from coal, oil and natural gas. China aims
to double its generating capacity by 2030, with half of all new
plants having renewable sources of power.
JA Solar is scheduled to reports its second quarter 2013 results
on Aug 29, and expects its second quarter deliveries to exceed
its projected deliveries of 410 MW to 430 MW. It is worth
mentioning that during the first quarter, JA Solar managed to
narrow the loss on a sequential basis backed by strong shipments
that also exceeded the company's forecast.
Shanghai, China-based JA Solar Holdings Co. currently has a Zacks
Rank #3 (Hold). A promising company in the space,
) looks attractive with a Zacks Rank #1 (Strong Buy).