The largest solar-cell producer by capacity,
JA Solar Holdings Co. Ltd.
) reported its first quarterly profit in fourth quarter 2013
following ten quarters of reporting in the red. The stock hit a
52-week high of $13.14 on Mar 17 while increasing 2.10% on daily
The company's fourth quarter 2013 adjusted earnings came in at 16
cents per American Depositary Share (ADS), handily beating the
Zacks Consensus Estimate of a loss of 3 cents. JA Solar had
incurred a loss of $2.65 in the year-ago quarter.
In 2013, the company narrowed its loss to $1.55 per American
Depositary Share (ADS) from a loss of $7.05 per ADS incurred in
The comeback indicates the recovery in the solar industry
accompanied with a surge in solar project installations in China.
JA Solar's revenues in the reported quarter were $357.3 million,
comfortably ahead of the Zacks Consensus Estimate of $271.0
million. Revenues also increased 29.5% from $275.9 million in the
fourth quarter of 2012 and 23.0% from $290.5 million in the third
quarter of 2013. Full year 2013 total revenue also increased 6.9%
year over year to $1.2 billion. The upcast was mainly due to
Gross profit was $55.3 million or 15.5% of total revenue,
compared with a gross loss of $12.7 million or a negative 4.6% in
the year-earlier period and a gross profit of $32.8 million or
11.3% of total revenue in the third quarter of 2013.
Total operating expenses declined 33.8% year over year and 19.7%
sequentially to $45.6 million.
Total shipments in the reported quarter were 665.7 megawatt (MW),
way above the high end of the company's forecast of 500 MW to 550
MW. Shipments climbed 33.0% year over year as well as
sequentially. In 2013, total shipments jumped 21.7% to 2.1
Increasing shipments came on the back of a strong Chinese market
where module shipments increased 1450 basis points sequentially.
Japan also remains one of the main revenue drivers for the
company despite intensifying competition.
At the end of 2013, JA Solar had a cash balance of $350.2 million
with $216.6 million of total working capital. Total long-term
bank borrowings were $411.3 million, of which $154.6 million were
due in one year.
JA Solar expects to ship 580-610 MW of cells and modules for the
first quarter of 2014. For 2014, the company plans to establish
its position in Latin America and the Middle East with a goal to
increase its shipments by more than 30% this year to 2.7 GW and
2.9 GW in both these regions respectively. It also remains
focused on delivering full-year profitability in 2014.
Solar cell manufacturer
Canadian Solar Inc.
) reported earnings of 39 cents per share in the fourth quarter
of 2013 as against a loss of $2.43 per share in the year-ago
quarter. The bottom line, however, came in below the Zacks
Consensus Estimate of 49 cents by 20.4%.
JinkoSolar Holding Co. Ltd.
) reported fourth quarter 2013 results with adjusted earnings per
ADS of $1.28 (adjusted earnings of 32 cents per share) coming in
ahead of the Zacks Consensus Estimate of 86 cents. The company
reversed its year-ago adjusted loss per ADS of $5.06 (adjusted
loss $1.26 per share) in the reported quarter.
JA Solar 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.
Positive factors include ongoing expansion programs, improving
operating efficiencies and higher conversion efficiency. JA Solar
is steadily expanding its customer base worldwide in several
geographic end markets including the U.S., Canada, Italy, Japan,
Australia, China and India.
Again, Chinese solar product manufacturers, like JASO, are also
speeding up their domestic operations with the government
becoming more and more stringent on environmental issues. The
electricity generators are implementing new measures to bring
down emission levels of greenhouse gases. At present, nearly 70%
of China's electricity is generated from coal-fired power plants.
The country is taking active steps to idle the high operating
cost coal mines. China aims to double its generating capacity by
2030, with half of all new plants having renewable sources of
However, tepid module demand in Europe, rising competition and
the financial stability of its customers may adversely impact
performance over the near term.
Shanghai, China-based JA Solar Holdings Co. currently has a Zacks
Rank #3 (Hold). Promising companies in the space include Canadian
Solar with a Zacks Rank #1 (Strong Buy), and JinkoSolar and
Trina Solar Limited
), each with a Zacks Rank #2 (Buy).
CANADIAN SOLAR (CSIQ): Free Stock Analysis
JA SOLAR HOLDGS (JASO): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
TRINA SOLAR LTD (TSL): Free Stock Analysis
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