JA Solar Holdings Co., Ltd
) announced that it has supplied photovoltaic (PV) modules
totaling 30 megawatts (MW) for solar projects in the U.K. The
projects were developed and built by a U.K-based developer of
large-scale renewable projects - British Solar Renewables.
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British Solar Renewables installed the units at four
ground-mounted projects this year. JA Solar − the largest
solar-cell producer by capacity - is one of the most
cost-efficient solar producers in the world, with a
geographically diverse customer base as well as silicon wafer
supply agreements in place to feed its production.
JA Solar caters to an increasingly 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 low-cost locational advantage in China. A
focus on widening its geographical customer base has resulted in
incremental international sales.
Europe accounted for 20% and the Americas accounted for about 8%
of its total shipments in the second quarter. On the domestic
front, JA Solar would stand to gain from the Chinese government
boosting its target to 35 gigawatt (GW) of cumulative solar
installations by 2015. The company has also made major progress
in accessing new markets like Thailand and Australia.
The company now anticipates third quarter deliveries between 450
MW and 470 MW. Although this solar company incurred a loss in the
second quarter, it managed to cut its loss both sequentially as
well as year over year. The narrower loss came on the heels of
higher-than-expected shipments. Strong demand in the high average
selling price market of Japan led to the growth. The company also
increased its foothold in the high-margin markets of
Asia-Pacific, the Middle East and Africa.
Given the industry-wide high inventory level, we believe margins
will likely remain depressed. In addition, tepid module demand in
Europe, rising competition, wafer dependency, the financial
stability of its customers and the oversupply of solar cells may
adversely impact performance over the near term.
JA Solar Holdings Co. currently has a Zacks Rank #3 (Hold). Other
attractive stocks in the solar space are
First Solar Inc.
Trina Solar Limited
Enphase Energy, Inc.
), all with a Zacks Rank #2 (Buy).