JinkoSolar Holding Co. Ltd.
) reported impressive second quarter 2013 results, returning to a
profit following seven quarters of losses buoyed by higher demand
from new solar markets. This makes JinkoSolar the first Chinese
module manufacturer to return to net profitability since the
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Adjusted earnings per American depositary share ("ADS") were 56
cents (RMB 3.32), well above the Zacks Consensus Estimate of a
loss per ADS of 7 cents, a diluted loss per ADS of 56 cents in
the first quarter of 2013 as well as a diluted loss per ADS of
$2.11 in the second quarter of 2012. Each "ADS" represents four
On a GAAP basis, diluted earnings came in at 36 cents per ADS
versus a loss per ADS of $2.20 in the year-ago period and 92
cents per ADS in the first quarter of 2013.
JA Solar's top line in the reported quarter was $287.6 million,
easily surpassing the Zacks Consensus Estimate of $276 million.
Total revenue also increased 47.6% annually and 53.6%
sequentially backed by higher shipment of solar modules.
Total shipments during the quarter were 489.2 megawatts ("MW"),
representing an increase of 61.9% year over year and 44.5%
sequentially. Of the total shipments, 460.0 MW were solar
modules, 11.1 MW were silicon wafers, and 18.1 MW comprised solar
Gross margin stood at 17.7% in the reported quarter compared with
8.4% in the second quarter of 2012 and 12.7% in the first quarter
of 2013 led by increased shipment volumes.
Total operating expenses in the quarter were $25.4 million, down
13.3% year over year and 3.8% sequentially.
JA Solar at the end of the reported quarter had cash and cash
equivalents and restricted cash of $73.9 million, up from $73.4
million at the end of Jun 30, 2012.
As of Jun 30, 2013, total short-term borrowings that included the
current portion of long-term bank borrowings were $386.2 million
compared with $366.5 million at the end of Jun 30, 2012. Total
long-term borrowings were $62.4 million compared with $43.3
million in the year-ago quarter.
JA Solar expects cell and module shipments in the range of 460 MW
to 500 MW in the third quarter of 2013. The company boosted its
total solar module shipments projection to the band of 1.5 GW and
1.7 GW (from 1.2 MW -1.5 MW) for 2013.
) second quarter 2013 adjusted earnings per share of 48 cents
comfortably exceeded the Zacks Consensus Estimate of 11 cents as
well as the year-ago profit level of 8 cents. The company's
stellar results were backed by strong demand for its solar panels
in utility, commercial and residential projects
Canadian Solar Inc.
) adjusted second quarter 2013 loss per share of 29 cents was
narrower than the loss of 59 cents in the second quarter of 2012.
First Solar Inc.
) reported adjusted second quarter 2013 earnings of 39 cents per
share, well below the Zacks Consensus Estimate of 50 cents by 22%
and 43.5% from the preceding quarter. The company's reported
number also saw a 74.3% decline from the year-ago period.
JinkoSolar presently retains a Zacks Rank #3 (Hold).