JinkoSolar stock price is up after the company beat forecasts by a large margin. Analysts had been expecting a drop after China cut solar incentives but instead total module shipments increased 24.4%, revenue rose 4.3% and EPS of $0.76 beat the forecast $0.09 loss.
Perhaps analysts should have paid more attention to the company’s August statement that it was immune from industry woes when it didn't change its 2018 shipment guidance. In the end overseas module shipments grew strongly, accounted for almost 80% of total shipments and offset the impact of softened Chinese demand.
For those who don’t mind a bit of China risk the company still looks attractive. In fairness its a global business (not just Chinese) and one of the world’s largest solar panel manufacturers with over 10,000 employees in 38 countries including the US.
The stock is up about 30% since the earnings announcement, but the TTM PE of 15 and 2018f PE 7.0 is hardly expensive.
What about the outlook? The company made some very bullish comments about next year - “We are confident in our ability to further expand our market share with global demand expected to recover next year as solar energy becomes more competitive and grid parity approaches in more key markets”
And also;
“We are confident that Chinese and global demand next year will recover as the cost of solar energy becomes more competitive. This trend is irreversible. We are now ideally positioned with our order book in Q4 almost full from growing overseas markets and our products being in short supply. We will benefit from growth in demand for solar energy and believe we have the right strategy in place to further expand our market share, distinguish ourselves from the competition, and consolidate our leading position in the industry”
This is not a recommendation to buy. Stocks not suitable investment for everyone. Please do your own research.
Submitted November 28, 2018 at 02:43PM by InterestingNews1 https://ift.tt/2FObJzO
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