CHINA: China-based solar product manufacturer JinkoSolar Holding Co., Ltd. JKS posted strong second quarter 2015 results, as its shift in focus to solar modules from cells continued to pay off. The company recorded non-GAAP adjusted earnings of $1.04 per American Depositary Share (ADS) in the second quarter, beating the Zacks Consensus Estimate of 83 cents by 25.3%. In the year-ago period, the company had reported earnings of 80 cents per ADS.
JinkoSolar’s revenues in the reported quarter were $516.2 million, comfortably beating the Zacks Consensus Estimate of $474 million by 8.9%. Revenues also increased 31.7% year over year and 16.5% sequentially. The company attributed the strong sales growth to the ongoing shift to module sales as well as its downstream focus.
Total shipments in the second quarter 2015 were 915 megawatt (MW), up 38.7% year over year and 15.9% sequentially.
The year-over-year improvement was attributable to a 44.2% increase in module shipment. Increasing shipments came on the back of strong China and Asia-Pacific markets. America also witnessed 115% sequential growth. As of Jun 30, 2015, the company connected 725 MW of solar projects to the grid.
Gross profit was $107 million, representing 20.7% of total revenues in the second quarter. It surged almost 20.6% year over year and 18.8% sequentially. Gross margin contracted 190 basis points (bps) year over year, while expanding 40 basis points sequentially on better product mix.
At the end of the second quarter, JinkoSolar had a cash balance of $282.7 million compared with $286.4 million at 2014 end. Total long-term borrowings were $344 million, compared with $154.2 million at 2014 end.
JinkoSolar expects to ship 1-1.1 gigawatt (GW) of modules in the third quarter of 2015. Full-year shipments are now expected in the range of 4 GW to 4.5 GW. JinkoSolar expects to ship 600 MW to 800 MW of modules to its downstream projects.
Solar PV module manufacturer Trina Solar Ltd. TSL reported earnings of 42 cents per American Depositary Shares (ADS) in the second quarter of 2015, beating the Zacks Consensus Estimate of 24 cents by 75%. The reported figure also increased from 14 cents per ADS earned in the year-ago quarter. The upside was driven by higher shipments.
JA Solar Holdings Co. Ltd. JASO posted second-quarter 2015 adjusted earnings of 27 cents per diluted ADS, surpassing the Zacks Consensus Estimate of 9 cents by an impressive 200% and the year-ago earnings by 92.9%.
ReneSola Ltd. SOL is scheduled to release second-quarter 2015 results on Aug 25, 2015. The Zacks Consensus Estimate is at a loss of 17 cents per ADS.
