Solar panel manufacturer
JinkoSolar Holding Co., Ltd.
) continues with its expansion activities in China encouraged by
the increasing solar uptake in the country. The company has taken
over assets owned by Zhejiang Topoint Photovoltaic Co. and
related companies on Jan 13. The deal was announced initially on
Jan 10 following which the stock climbed 1.8% in the day's
trading showing avid investor interest in this Chinese solar
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Topoint - a high-tech photovoltaic (PV) manufacturer - has its
presence in the Huangwan Industry Park in Haining, Zhejiang
Province. The entity is presently streamlining its operations
under the supervision of the Haining City government and the
Haining City People's Court. The assets acquired by JinkoSolar
include Zhejiang Topoint, Zhejiang Yutai Photovoltaic Material
Co., Zhejiang Weishida Photovoltaic Material Co. and Zhejiang
Jiutai New Energy Co.
JinkoSolar has started operating the plants under a leasing
agreement and will assume ownership once the reorganization is
complete. This move is expected to boost JinkoSolar's capacity as
global demand for photovoltaic panels is steadily on the rise.
The properties of Topoint have 500 megawatt (MW) annual capacity
for silicon wafers, 500 MW for PV cells, and 100 MW for PV
modules. This will add to Jinko's current production capabilities
of 2 gigawatts (GW), 2.0 GW and 2.1 GW, respectively.
With a gradual recovery in the solar industry from a two-year
down cycle, demand for solar panels has improved considerably
last year. Some solar companies went into bankruptcy thereby
creating acquisition targets for stronger photovoltaic producers
JinkoSolar's solar modules have one of the highest efficiency
levels among its peers, which help in securing consistent orders
from customers worldwide. The tie-up with Beijing University's
Solar Power Engineering Center to check the efficiency of PV
modules when exposed to various conditions will further improve
the quality of its products.
Japan and China will feature among the largest users of solar
power in the next few years. The Chinese government expects to
generate 20 GW of electricity from solar energy by 2020. In
addition, Japan has set a target to install 28 GW of solar power
capacity by 2020. Given its product quality, JinkoSolar will
definitely benefit from the increase in solar power usage from
these two countries.
JinkoSolar Holding currently has a Zacks Rank #1 (Strong Buy).
Other players in the solar PV industry, which also look
attractive at current levels, include
First Solar, Inc.
). All these stocks carry a Zack Rank # 2 (Buy).