JA Solar Holdings Co., Ltd.
) announced the beginning of the production of its 5-inch highly
effective monocrystalline modules. The production will take place
on a massive scale. The 72-cell modules have power output of 210
megawatt ("MW"), which can be scaled up to 215 MW.
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This makes JA Solar the first photovoltaic ("PV") manufacturing
entity to accomplish standard output level of 210 MW from the
In comparison to other models, the monocrystalline modules
generate 3% more power annually, which in turn leads to 2% cost
savings in terms of transportation, space and materials.
The company has been involved in such large-scale production
activities. Previously, during November 2012, the company
initiated the production of the then newly launched 6-inch
full-square monocrystalline modules.
Characteristically, monocrystalline modules have high solar
energy conversion rate and are relatively lower priced with an
unmatched production rate, which makes it an attractive choice
for solar energy producers in the fast growing renewable energy
JA Solar's engagement in sizeable PV production activities will
complement its growth opportunities given the Chinese
government's plans of increasing renewable share in the energy
consumption to 11.4% by 2015. This represents a 3.1% surge from
the 2010 figures. Additionally, the government proposed offering
of subsidies to solar projects and free grid connection to PV
distribution programs is another factor that will work in favor
of JA Solar.
We believe the decision of US government to impose an
anti-dumping duty of 25.96% and a countervailing duty of 15.24%
on Chinese panels will severely impact the future prospects, as
U.S. is a prime export destination for the company. This will
more than offset the company's domestic gains. Furthermore, the
JA Solar's prospects in Europe look dull owing to the ongoing
The negative impact is adequately reflected in the Zacks
Consensus Estimate which for the last quarter of 2012 fell
significantly by 121.25% to a loss of $1.33 per share and will
linger in the subsequent first quarter 2013 with a 26.67% decline
to a loss of $1.27 per share. With both estimates falling, the
company currently retains a Zacks Rank #4 (Sell).
However, in contrast to JA Solar,
), a Zacks Rank #3 (Hold) operator is expected to do well given
its recent agreement with
). The collaborative project entails improvement in the
conversion efficiency of First Solar's cadmium telluride ("CdTe")
solar cell technology. This is a less expensive option than the
panels manufactured from crystalline silicon.
With a market capitalization of $213.86 million, Shanghai-based
JA Solar Holdings Co., Ltd. together with its subsidiaries
engages in the development, production, marketing, and sale of
photovoltaic solar cells and solar power products that convert
sunlight into electricity worldwide.