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On Aug 13, 2015, we have issued an updated research report on JA Solar Holdings Company Ltd. JASO, the Chinese solar cell and module manufacturer.
JA Solar caters to a geographically diversified pan-continental customer base, spanning across Germany, Italy, the U.S., Spain, India, Korea, China and Japan. The company’s focus on widening its geographical customer base has resulted in incremental international sales. The company is expanding its presence by working with local partners in Japan, the UK, South Africa and Latin America.
Recently, JA Solar reported solid second-quarter 2015 earnings that beat the Street estimate by 200% and improved 92.9% from the year-ago figure. The results were backed by strong demand in the Asian market. Shipments grew 16% year over year, surpassing the company’s own projection, largely driven by higher demand in China, which accounted for 45% of its total shipments.
Apart from China, the company intends to boost its sales by foraying into the untapped markets of India. India now aims to produce nearly 175,000 megawatts (“MW”) of electricity through renewable sources by 2022, comprising 100,000 MW of solar energy alone. JA Solar is also expanding its geographical presence with modules supply in the South Pacific, including New Zealand and Fiji, and opening a new manufacturing facility in Penang, Malaysia. The company’s expansion into these regions will aid top-line growth and help it meet its total shipment target of 3.6–4 gigawatts (“GW”) this year.
With focus on research and development (R&D), JA Solar strives to improve the efficiency of its solar cell conversion. Recently, the company’s salt mist resistance PV modules passed the Double Standard Class 6 test, which makes it the first company to do so. These modules boast higher corrosion resistance ability. JA Solar’s commitment to develop new and efficient products will help maintain its order book and remain competitive.
JA Solar continues shifting its sales model to include more modules and fewer cells. Module shipments were 717.4 MW in the second quarter, up 60.9% from the prior-year period and accounting for 90.7% of total shipments in the quarter. The company’s resilient business model, attractive product mix as well as its ability to adapt to changing market scenarios, as evident from its shift in focus to solar modules, will ensure solid revenue growth, going forward.
On the flip side, the U.S. government’s recent efforts to promote its own solar industry have led the country to take strict action against the import of cost-competitive Chinese-manufactured solar modules. The latest anti-dumping policies imposed by the U.S. could pose challenges to JA Solar’s profitability like other Chinese solar companies, including ReneSola Ltd. SOL, Yingli Green Energy Holding Co. Ltd. YGE and Trina Solar Limited TSL. America comprised a mere 0.6% of the company’s shipments in the second quarter of 2015 compared with 11.2% in the year-ago period.
Zacks Rank
JA Solar presently sports a Zacks Rank #1 (Strong Buy).
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 >> 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 YINGLI GREEN EN (YGE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Ja Solar Holdings Co. Ltd.
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CODE : JASO |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Ja Solar is based in China. Ja Solar is listed in Germany and in United States of America. Its market capitalisation is US$ 71.2 millions as of today (€ 62.5 millions). Its stock quote reached its lowest recent point on November 21, 2008 at US$ 1.55, and its highest recent level on April 02, 2015 at US$ 9.98. Ja Solar has 9 510 000 shares outstanding. |