JA Solar Holdings Co. Ltd.
) responded to the preliminary decision by the U.S. Department of
Commerce, or DOC, on imposing antidumping duties on China-produced
According to the DOC's preliminary determination, announced on
May 17, 2012, JA Solar's crystalline silicon photovoltaic cells
produced in China, and modules containing such cells, which are
imported to the U.S., would be subject to a preliminary antidumping
tariff rate of 31.18%. The tariff decision is expected to be
finalized in the fourth quarter of 2012.
JA Solar is disappointed by the DOC's decision. JA Solar
believes that setting barriers in the U.S. market to fair global
trade will penalize U.S. customers and hinder the growth of the
U.S. solar industry.
JA Solar is one of the most cost-efficient solar producers in
the world, with a geographically diverse customer base. The
company has 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 U.S., Canada, Italy,
Japan, Australia, China and India.
By the end of fiscal 2011, JA Solar had an annual solar cell
production capacity of 2.8GW and an annual module production
capacity of 1.2GW. JA Solar intends to maintain its annualized
solar cell capacity at 2.8GW in 2012. The company expects to
achieve annualized solar module capacity of 1.7GW by the end of the
second quarter of 2012 and 2GW by the end of fiscal 2012.
We currently have a long-term 'Neutral' recommendation on the JA
Solar stock. In the near term, however, apprehensions over the
tepid module demand in Europe, rising competition, wafer
dependency, the financial stability of its customers and the
oversupply of solar cells in the market will restrain the valuation
of the company. Thus, for the short term, in line with its peer
JinkoSolar Holding Co. Ltd.
), the stock retains a Zacks #5 Rank (Strong Sell rating).
JA SOLAR HOLDGS (JASO): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
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