Is Now The Time To Add JKS To Your Portfolio?

 

Chinese solar panel manufacturer JinkoSolar Holding Co. Ltd. (JKS) is currently experiencing significant growth in its business driven by the rising demand for its N-type products. Additionally, the company's strong financial results and promising outlook are also reasons why it is increasingly becoming an interesting stock to watch.

 As of the most recent market data, JKS has a market capitalization of $1.93 billion and an enterprise value of $7.56 billion. The trailing price-to-earnings (PE) ratio, which measures the company's current stock price relative to its earnings per share over the past 12 months, is 3.68. The forward PE ratio is 3.31.

The stock, which has been trading between $25.15 and $61.27 for the past 52-week period, closed Thursday's (Dec. 28, 2023) trade at $37.42, up $1.87 or 5.26%, with a trading volume of over 1.91 million shares versus an average volume of 1.02 million shares.

The company is anticipating that its module shipments will be around 23.0 GW for the fourth quarter. It is confident that its module shipments for the full year will exceed its guidance of 70 - 75 GW, with N-type modules making up about 60% of the total.

Additionally, JKS expects annual production capacity for mono wafers, solar cells, and solar modules to reach 85.0 GW, 90.0 GW, and 110.0 GW respectively by the end of 2023, with N-type capacity accounting for over 75%.

While commenting on its Q3 results (reported in October 2023), Xiande Li, JinkoSolar's Chairman and Chief Executive Officer, said:

“Despite market volatility, we delivered strong results in the third quarter leveraging our advantages in N-type TOPCon technology, extensive global operation network and advanced integrated capacity structure. Our module shipments, gross margin and net income all increased significantly year-over-year. Total module shipments were approximately 21.4 GW, an increase of 107.9% year-over-year. The cost of polysilicon decreased sequentially. Our premium high-efficient N-type products accounted for over 60% of total shipments, and shipments to the U.S. recorded sequential growth. Year-over-year, net income increased by 140.7% to US$181.4 million, and adjusted net income increased by 215.1% to US$184.6 million, diluted earnings per ordinary share increased by 188.7% to US$0.63, and gross margin increased from 15.7% to 19.3%.”