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China-based solar cell and module producer JA Solar Holdings Co. Ltd. JASO posted strong fourth-quarter 2014 results, as its shift in focus to solar modules instead of cells paid off. The company recorded non-GAAP adjusted earnings of 30 cents per American Depositary Share (ADS) in the fourth quarter of 2014, beating the Zacks Consensus Estimate of 27 cents by 11.1%. In the year-ago period, the company had reported earnings of 16 cents per ADS.
Total Revenue
JA Solar’s revenues in the reported quarter were $576.4 million, comfortably beating the Zacks Consensus Estimate of $525 million by 9.8%. Revenues also increased 65.3% year over year and 18.4% sequentially. The company attributed the strong sales growth to the ongoing shift to module sales, along with penetration of its key geographies, China and Japan.
In 2014, total revenues were $1.8 billion, up 50% from $1.2 billion in 2013.
Shipments
Total shipments in the fourth quarter 2014 were 952.7 megawatt (MW), up 43.2% year over year and 21.3% sequentially.
The year-over-year improvement was attributable to a 142.1% increase in module shipment. However, its cell shipment decreased almost 76% year over year. Modules and cells comprised 92.3% and 7.7% of total shipments in the reported quarter as against 54.6% and 45%, respectively, in the year-ago period, amply reflecting the strategic shift.
Increasing shipments came on the back of strong China and Asia-Pacific (excluding China) markets, which constituted 41.0% and 37.3% of the total quarterly shipment. Shipments to Europe remained at 12.8%. America witnessed a considerable drop representing a mere 4.4%.
Operational Highlights
Gross profit was $89.3 million representing 15.5% of total revenues in the fourth quarter. It surged almost 65.4% year over year and 21.9% sequentially. Gross margin remained flat year over year, while expanding 50 basis points sequentially on better product mix.
Financial Condition
At the end of the fourth quarter, JA Solar had a cash balance of $347.3 million compared with $352.2 million at 2013 end. Total long-term bank borrowings were $310.2 million, of which $3.5 million were due in one year.
Guidance
JA Solar expects to ship 680–750 MW of cells and modules in the first quarter of 2015. Full-year 2015 shipments are expected in the range of 3.6 GW to 4 GW. JA Solar expects to ship 200 MW to 300 MW of modules to its downstream projects.
Peer Comparison
ReneSola Ltd SOL reported an adjusted loss per ADS of 15 cents in the fourth quarter of 2014, in line with the Zacks Consensus Estimate. The reported loss was much wider than the year-ago loss of 3 cents per ADS and a loss of 1 cent per ADS in the preceding quarter.
Solar PV module manufacturer Trina Solar Ltd. TSL reported earnings of 21 cents per ADS in the fourth quarter of 2014, ahead of the Zacks Consensus Estimate by 50%.
JinkoSolar Holding Co., Ltd. JKS reported fourth-quarter 2014 non-GAAP earnings per ADS of 89 cents, below the Zacks Consensus Estimate of 90 cents by 1.1%.
Zacks Rank
Shanghai, China-based JA Solar Holdings Co. currently holds a Zacks Rank #2 (Buy).
The company’s solid quarterly performance is a reflection of its resilient business model and its ability to quickly adapt to market demand. JA Solar has an attractive product and geographic mix. With the fourth quarter release, this solar products manufacturer reported its fifth straight quarterly profit, backed by solid module demand.
The company anticipates robust demand in 2015 and plans to expand its cell and module capacity by 20%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JA SOLAR HOLDGS (JASO): Free Stock Analysis Report TRINA SOLAR LTD (TSL): Free Stock Analysis Report RENESOLA LT-ADR (SOL): Free Stock Analysis Report JINKOSOLAR HLDG (JKS): Free Stock Analysis Report To read this article on Zacks.com click here.
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Trina Solar Ltd.
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CODE : TSL |
ISIN : US89628E1047 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Trina Solar is based in China. Trina Solar is listed in United States of America. Its market capitalisation is US$ 2.5 billions as of today (€ 2.3 billions). Its stock quote reached its highest recent level on April 22, 2016 at US$ 9.99, and its lowest recent point on January 16, 2018 at US$ 0.01. Trina Solar has 449 180 000 shares outstanding. |