JinkoSolar Holding (NYSE: JKS) announced strong 3Q10 results on Monday, beating its guidance and sending share prices upwards.
The Chinese solar manufacturer, which went public this summer, saw its share price climb roughly 15% on the news to close the day at $35.14.
Net income in 3110 was RMB259.5 million (US$38.8 million), an
increase of 43.6% from RMB180.7 million in 2Q10 and 1,766.9% from
RMB13.9 million in 3Q09. Basic and diluted earnings per share in the
third quarter of 2010 were RMB2.99 (US$0.45) and RMB2.93 (US$0.44),
respectively, and basic and diluted earnings per ADS were RMB11.94
(US$1.78) and RMB11.70 (US$1.75), respectively. Each ADS represents four
ordinary shares.
Total 3Q revenues were RMB1.4 billion (US$215.0 million), an increase of 59.7% from RMB900.6 million in 2Q10 and 260.5% from RMB398.9 million in 3Q09.
JinkoSolar said the sequential increase in revenues was primarily due to the increase in the sales volume, particularly in solar modules, as the Company’s product mix shifted from wafer to module, as well as an increase in the average selling price (ASP) of the Company’s solar modules.
Gross margin increased to 33.5% in 3Q10 from 26.9% in 2Q10 and 15.8% in 3Q09, mainly due to an increase in the ASP of the Company’s solar modules and a further decrease in average non-silicon cost as the company continues to benefit from the vertical integration of its production process.
Total solar product shipments in 3Q10 were 134.8 MW, consisting of 33.7 MW of silicon wafers, 8.6 MW of solar cells and 92.5 MW of solar modules. By comparison, total shipments for 2Q10 were 99.9 MW, consisting of 29.6 MW of silicon wafers, 16.0 MW of solar cells and 54.3 MW of solar modules. Solar module shipments in 3Q10 increased by 70.3% sequentially, while total solar product shipments increased by 34.9% sequentially and 110.6% year-over-year.
In 3Q10, the company expanded its in-house annual silicon wafer, solar cell and solar module production capacities from approximately 400 MW, 300 MW and 300 MW, respectively, as of June 30, 2010 to approximately 600 MW, 300 MW and 450 MW, respectively, as of September 30, 2010.
For 4Q10, JinkoSolar expects total solar product shipments to be in the range of 130 MW to 140 MW with module shipments expected to be between 100 MW to 110 MW. Total revenues are expected to be in the range of US$210 million to US$220 million
Based on the current operating conditions, the Company raises its full year 2010 total solar product shipments guidance to an estimated range of 448 MW to 458 MW, from its earlier guidance of 395 MW to 415 MW, with module shipments expected to be in an estimated range of 257 MW to 267 MW for the full year 2010, as compared to its earlier guidance of 195 MW to 205 MW.
The Company also raises its full year 2010 revenue guidance to an estimated range of US$638 million to US$648 million, as compared to its earlier guidance of US$500 million to US$525 million.
The Company expects to increase its in-house annual silicon wafer, solar cell and solar module production capacities to approximately 600 MW each, as compared to the original guidance of 500 MW each by the end of 2010.
Leading U.S. solar firm First Solar released 3Q results at the end of the week and saw its share price slide.
Loading...