On Jun 27, 2013, we have maintained our Neutral recommendation
JA Solar Holdings Company Ltd.
) − the largest solar-cell producer by capacity. JA Solar retains
a Zacks Rank #3 (Hold).
Why the Reiteration?
JA Solar caters to a geographically diversified pan-continental
customer base, which spans across 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 revenues. A consistent focus on widening its
geographical customer base has resulted in incremental
The company now sees its second quarter 2013 deliveries to exceed
its projected deliveries of 410 megawatt (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.
Chinese solar product manufacturers, like JASO,
LDK Solar Co. Ltd.
Suntech Power Holdings Co. Ltd.
), are currently facing the impact of anti-dumping duties being
imposed in the U.S. 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 dipping average selling
The solar module space has consequently recovered since the end
of last year with demand rising in the U.S. and Japan. We believe
the recovery in the solar5 space will take another year or so
with JA Solar expecting to return to profitability by the first
half of 2014.
Other Stock to Consider
A promising company in the space,
JinkoSolar Holding Co. Ltd.
) looks attractive with a Zacks Rank #2 (Buy).
JA SOLAR HOLDGS (JASO): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
LDK SOLAR CO (LDK): Free Stock Analysis
SUNTECH PWR HLD (STP): Free Stock Analysis
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