JinkoSolar Holding CEO (
), Chen Kangping said today that China's solar panel manufactures
should begin to see a recovery in solar power as soon as this
Mr. Kangping went on to say "We believe those companies that
perform well, including Jinko, will be profitable in the second
half of this year," and those remaining Chinese solar companies
that can survive the turn in 2013 should be able to print a
profit next year.
JKS is now seeing order volume being to approach saturation
levels for production. This is key for JKS as it puts the
company in the driver's seat and allows the company to be more
selective on which orders they process first allowing for higher
profit margins from their larger long term clients.
With China's government shift to power generation projects in
solar and other clean energies, Li Hejun, chairman of the China
New Energy Chamber of Commerce is expecting nearly 10 trillion
yuan or roughly $1.6 trillion U.S. dollars in value over the next
He went on to say during his speech at the Chinese People's
Political Consultative Conference that even though the domestic
(China) is promising and strengthening, the global market in the
space continues to be challenging.
When asked during the conference where Mr. Chen saw
opportunities he said emerging markets of Africa, Middle East and
Southeast Asia are promising. He went on to say there is less
competition in these markets and are focused on getting service
rather than price.
With close to an 85% drop in JKS' stock price from 2010's high
of $41.75 due to production overcapacity and now that the JKS is
looking to emerging markets and the possibility of more
consolidation within in these markets JKS should be able to
maintain strong margins as it expands into emerging markets.
: JKS is back on my radar as an early speculative play.
There is no rush to jump into this name and with the stock being
listed in New York Stock Exchange I'm waiting for an overall U.S
equity market to pullback and grab a better entry point in