JinkoSolar Holding Co. Ltd.
) reported first quarter 2013 results with an adjusted loss per
American Depositary Share ("ADS") of 56 cents or (adjusted loss
of 14 cents per share), narrower than the Zacks Consensus
Estimate of a loss of $1.66 per share. Loss was also well below
the year-ago adjusted loss per ADS of $2.36 or (adjusted loss 59
cents per share). Each "ADS" represents four ordinary shares.
The results reflect a diversified customer base and improvement
in operational efficiency in a rapidly changing solar power
Including the expenses related to the issuance of the company's
convertible senior notes, changes in the fair value of the
convertible senior notes and capped call options, interest
expenses on the convertible senior notes, and the exchange gains
on the convertible senior notes and capped call options, GAAP
loss per "ADS" was 92 cents, as against a loss of 64 cents per
share in the first quarter of 2012.
JA Solar's revenues in the reported quarter were $187.3
million, missing the Zacks Consensus Estimate by $14 million.
However, the top line was above the year-ago figure of $168
Revenues remained approximately in line on a quarter-over-quarter
basis due to a decrease in revenues from system integration
projects for which the company provides Engineering, Procurement
& Construction services. However, these decreases were offset
by an increase in revenues from higher shipments of solar
Total shipments in the first quarter of 2013 were 338.6 megawatts
("MW"). This represents a 12.2% increase from 301.9 MW in the
fourth quarter of 2012 and a 36% rise from 249 MW in the first
quarter of 2012. Of the total shipments, 282.4 MW were solar
modules, 25.4 MW were silicon wafers, and 30.8 MW were solar
Gross profit in the first quarter of 2013 was $23.7 million
compared with a gross profit of $1.1 million in the first quarter
of 2012 and $7.1 million in the fourth quarter of 2012. Gross
margin was 12.7% in the first quarter of 2013 compared with 0.7%
in the first quarter of 2012 and 3.8% in the fourth quarter of
Total operating expenses in the first quarter of 2013 were $26.4
million, down 78.8% sequentially and 46.9% year over year.
Operating expenses in the reported quarter were 14.9% of total
Net interest expense in the quarter under review was $8.9
million, down from $9.3 million in the year-ago quarter.
Operating loss in the first quarter of 2013 was $2.7 million
compared with an operating loss of $117.8 million in the fourth
quarter of 2012 and an operating loss of $48.6 million in the
first quarter of 2012.
Operating margin was a negative 4.1% in the first quarter of 2013
compared with a negative 62.9% in the fourth quarter of 2012 and
a negative 28.9% in the first quarter of 2012.
JA Solar at the end of the reported quarter had cash and cash
equivalents and restricted cash of $93 million, up from $40.7
million at the end of Mar 31, 2012.
As of Mar 31, 2013, total short-term borrowings that included the
current portion of long-term bank borrowings were $397 million
compared with $380.1 million at the end of Mar 31, 2012. Total
long-term borrowings were $55.4 million compared with $27.4
million in the year-ago quarter.
JA Solar expects its cell and module shipments to be in the range
of 450 MW and 470 MW in the second quarter of 2013. The company
expects total solar module shipments in the range of 1.2 GW and
1.5 GW in 2013. By the end of full year 2013, the company expects
in-house annual silicon wafer, solar cell and solar module
production capacity to be approximately 1,200 MW.
Canadian Solar Inc.
) reported first quarter 2013 results with adjusted loss per
share of 10 cents much narrower than a loss of 49 cents in the
first quarter of 2012 and a loss of $1.01 in the fourth quarter
JA Solar Holdings Co. Ltd.
) announced a loss of 85 cents per ADS in its first quarter of
2013, better than the Zacks Consensus Estimate of a loss of
$1.01. However, results came far below the year-ago earnings per
ADS of $1.03.
) reported a loss per ADS of 45 cents, wider than the Zacks
Consensus Estimate of a loss of 39 cents per ADS. However, its
first-quarter loss narrowed from the year-ago quarterly loss of
47 cents per ADS.
CANADIAN SOLAR (CSIQ): Free Stock Analysis
JA SOLAR HOLDGS (JASO): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
RENESOLA LT-ADR (SOL): Free Stock Analysis
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Though still in the red, the loss incurred by JinkoSolar in the
reported quarter was narrower than the Zacks Consensus Estimate.
Revenues however were short of the forecast.
Going forward, we remain concerned about the continued module
oversupply, weak global economic growth, rising competition,
decline in average selling prices of photovoltaic products and
the financial stability of the company's customers. JinkoSolar
presently retains a short-term Zacks Rank #4 (Sell).