JinkoSolar Modules for India - Analyst Blog

By Zacks Equity Research,

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JinkoSolar Holding Co., Ltd. ( JKS ) has completed the supply of 5 megawatt (MW) modules to Sunkon Energy (P) Ltd's photovoltaic ("PV") solar project. Located in Gujarat, India, Sunkon Energy develops, finances, constructs, owns, and operates utility-scale solar PV power plants.

Spread over a span of 80,000 square meters, the solar project has installed 17,886 JinkoSolar poly-crystalline modules. On an annual basis, the project is expected to produce 8,030 MW hour of electricity and reduce CO2 emission by 7,882 tons.

The company has spread its operations in the Asian, European and African markets. Only last month, JinkoSolar entered into an agreement with a well-recognized solar project developer in South Africa. Per the terms of the agreement, JinkoSolar will supply high-efficiency solar panels totaling 115 MW for two projects in South Africa.

In Mar 2013, JinkoSolar opened a sales office in Tokyo, Japan to capitalize on the increasing opportunities of providing clean and sustainable energy solutions to the country.

Also, with the objective to expand and strengthen the company's Chinese operations, it entered into an agreement with China Development Bank for a 15-year loan worth approximately $58 million (RMB360 million) in April.

However, international expansion for this Chinese solar manufacturing company is no longer an easy task. Indeed, increasing order flows do not sufficiently offset the headwind from anti-dumping duties in Europe as well as the U.S. Beginning Jun 6, 2013, the European Commission is planning to impose anti-dumping duties on 47% of Chinese solar imports.

In 2012, the U.S. Department of Commerce (DoC) implemented anti-dumping duties of effectively 25.96% and countervailing duties of 15.24%. The U.S. DoC rolled out these tariffs to tighten supply of Chinese solar-products in the U.S. and simultaneously encourage local players to tap the growing renewable domestic market. These steps have made the North American solar power market increasingly competitive for the Chinese solar power product manufacturers.

Therefore, like its peer Suntech Power Holdings Co. Ltd. ( STP ), the company is also subject to anti-dumping and countervailing duties. Given the negative dynamics, the company presently retains a short-term Zacks Rank #5 (Strong Sell).

On Jun 7, 2013, the company is expected to release its first quarter 2013 earnings results. The Zacks Consensus Estimate for the quarter is currently at a loss of $1.66 per share.

However, stocks to look out for in the solar space are Trina Solar Limited ( TSL ) and JA Solar Holdings Co., Ltd. ( JASO ), both with a Zacks Rank #2 (Buy).

JA SOLAR HOLDGS (JASO): Free Stock Analysis Report

JINKOSOLAR HLDG (JKS): Free Stock Analysis Report

SUNTECH PWR HLD (STP): Free Stock Analysis Report

TRINA SOLAR LTD (TSL): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: JASO , JKS , P , STP , TSL

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