| JA Solar Seeks Growth in New Markets: Will This Pay Off? | |
| | |
|
On Sep 14, 2015, we updated an equity research report on JA Solar Holdings Company Ltd. JASO, Ningjin, Hebei, China-based solar company.
JA Solar caters to a geographically diversified pan-continental customer base, spanning over 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, UK, South Africa and Latin America.
Moreover, the company witnessed strong demand in the Asia-Pacific market (excluding China) as well as in China, which constituted 31.9% and 45.3% of total module shipments, respectively, in the second quarter of 2015. Moreover, total module shipments in the second quarter increased 60.9% year over year to 717.4 MW.
With a focus on research and development (“R&D”), JA Solar strives to enhance the efficiency of its solar cell conversion. Its focus on conversion efficiency will act as a catalyst in gaining a sizeable market share in the fiercely competitive solar space. The Double Standard Class 6 test was cleared by the salt mist resistance PV modules of JA Solar – the first company to do so. These modules boast higher corrosion resistance ability. Its commitment to develop new and efficient products will help in maintaining its order book and remaining competitive.
Again, JA Solar has gradually shifted its mode of business from cells to solar modules. The move is now paying off. In the second quarter, module shipments increased 60.9% from the prior-year period to 717.4 MW and accounted for 90.7% of total shipments. Module shipments were only 65.4% of total shipments in the prior-year period. The company’s resilient business model, attractive product mix and 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.
China is striving to not only be the largest solar panel making nation but also the biggest solar market in the world. In fact, Chinese banks are now providing more credit to new solar PV projects driven by a favorable government policy. Hence, this Chinese solar player stands to gain from its locational advantage.
However, 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 players namely ReneSola Ltd. SOL, Trina Solar Ltd. TSL or Yingli Green Energy Holding Co. Ltd. YGE. America comprised a mere 0.6% of the company’s shipments in the second quarter compared with 11.2% in the year-ago period.
In spite of the trade war with the U.S., JA Solar stands to gain from its geographic advantage. It enjoys proximity to India and Japan, two countries which are projected to witness skyrocketing solar demand in the coming years.
Zacks Rank
Currently, JA Solar 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
|
|
|
Ja Solar Holdings Co. Ltd.
|
|
|
CODE : JASO |
|
|
| |
ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Ja Solar est une société basée en Chine. Ja Solar est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 71,2 millions US$ (62,5 millions €). La valeur de son action a atteint son plus bas niveau récent le 21 novembre 2008 à 1,55 US$, et son plus haut niveau récent le 02 avril 2015 à 9,98 US$. Ja Solar possède 9 510 000 actions en circulation. |