Solar product manufacturer
JA Solar Holdings Co. Ltd
) announced that its board of directors has authorized an aggregate
buyback of $100 million of its issued and outstanding American
Depositary Shares. The company will have to repurchase the shares
within September 30, 2012.
Cash and cash equivalents of the company as of March 31, 2012
were $676.2 million, which prompted the company to leverage its
strong financial position for shareholder-friendly moves.
The outstanding shares of the company at the end of the first
quarter were 195.7 million. JA Solar will be able to bring down the
outstanding share count substantially through the utilization of
the repurchase fund. The market also reacted positively to the
news; the closing price of $1.06 reflected a gain of 14% from the
previous day's closing price.
The company from time to time authorizes buyback programs taking
into consideration the prevailing market conditions. Previously, in
August 2011, the board of directors of JA Solar authorized a $100
million buyback of outstanding American Depositary Shares.
The company did not provide any earnings guidance, but the
producer of cost efficient solar modules expects its 2012 shipments
to be between 1.8GW and 2GW surpassing the 2011 figure of 1.69
With a gradual increase in sales and decline in the share count,
JA Solar will be able to improve its financial results in the
forthcoming years. We project a loss per share of 44 cents in 2012,
and expect it to come down to a loss per share of 14 cents in
JA Solar presently retains a short-term Zacks #3 Rank
(short-term Hold rating). The company competes with
Suntech Power Holdings Co. Ltd.
Based in Shanghai, The People's Republic of China, JA Solar
Holdings Co., Ltd. is a manufacturer of high-performance solar
power products and sells its products worldwide to solar
JA SOLAR HOLDGS (JASO): Free Stock Analysis
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