Markets
JKS

Why Shares of JinkoSolar Holding Co., Ltd. Have Dropped 12% Since July

Shares of have dropped a disappointing 12% since the start of August. But considering the general drop in solar stocks over the past month, the fall could have been much worse.

What: Shares of JinkoSolar Holding Co., Ltd. have dropped a disappointing 12% since the start of August. But considering the general drop in solar stocks over the past month, the fall could have been much worse.

So what: Solar stocks have fallen with the price of oil over the past month, putting pressure on stocks like JinkoSolar. But the company's results continue to be some of the strongest of the Chinese manufacturers, and the recently reported second quarter is no different.

Revenues rose 31.6% year over year to $516.2 million and non-GAAP net income was $33.4 million, or $1.04 per share. That easily makes JinkoSolar one of the most profitable solar companies in China, and with just $1.2 billion in debt and payables and $469 million in cash and short-term investments, the company has a better balance sheet than most as well.

Now what: I'm not a big fan of Chinese stocks in general because the companies make a commodity product and they've been less than shareholder-friendly in the past (see Suntech Power's bankruptcy). But if you're looking at China for exposure to the solar industry, JinkoSolar would be at the top of my list. The company has better margins than most competitors, is moving quickly into the systems business, and has a better balance sheet than most competitors as well.

The strength doesn't mean there aren't risks in investing in China or solar stocks, but JinkoSolar is the best among its peers in China, especially after the stock's drop over the past month.

The next billion-dollar iSecret

The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .

The article Why Shares of JinkoSolar Holding Co., Ltd. Have Dropped 12% Since July originally appeared on Fool.com.

Travis Hoium has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

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


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

In This Story

JKS

Other Topics

Stocks

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More