JA Solar Holdings Co., Ltd.
) has announced the beginning of shipment of the solar modules to
China Three Gorges New Energy Corporation ("CTGNE"). This
contract has been signed between JA Solar and subsidiaries of
CTGNE following a bidding procedure.
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Per the agreement, the company will provide 40 megawatts ("MW")
of solar modules to CTGNE. The whole delivery is expected to be
completed by the end of December 2012. CTGNE intends to utilize
these modules for its utility-scale project at Ningxia province
Globally, demand for renewable energy is growing primarily due to
its clean nature, increasing prices of fossil-fuels, and growing
awareness among the masses regarding its benefits. This fact
induces the utility providers to shift their mode of power
generating operations to wind, solar and water from coal, oil and
JA Solar aims to take advantage of this opportunity and expand
its overseas business footprint while foraying with international
solar infrastructure companies and engineering, procurement and
construction ("EPC") players. The company has been supplying
solar modules to customers across the globe. In September 2012,
JA Solar commenced its 90 MW solar module shipments to China
Power Investment Corporation ("CPI").
Another major Chinese solar player
Suntech Power Holdings Company Ltd.
) is also busy in expanding its global footprint with a
contract-win for the supply of 25 MW of polycrystalline solar
panels to an Italian solar EPC company.
U.S. solar markets are gradually becoming less lucrative for the
Chinese solar module manufacturers. The decision to impose
anti-subsidy tariffs and anti-dumping duty by the U.S. Department
of Commerce ("DOC"), will negatively impact the Chinese
producers. The U.S. DOC rolled-out these tariffs to constrict the
supply of the Chinese solar-products in the U.S. and encourage
domestic players to tap the growing renewable U.S. market.
Amid this scenario, we believe these kinds of domestic contracts
would provide JA Solar a ray of hope for its future growth
JA Solar Holdings Co., Ltd. currently has short-term Zacks #4
Rank (Sell rating).
Shanghai, China-based JA Solar Holdings Co., Ltd. is a leading
manufacturer of high-performance solar power products that
convert sunlight into electricity for residential, commercial,
and utility-scale power generation. With a market capitalization
of $156.70 million, the company has 11,639 full-time