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Solar panel manufacturer JinkoSolar Holding Co. Ltd. (JKS - Snapshot Report) successfully connected two solar photovoltaic (PV) power plants with a combined 39 megawatts (MW) of capacity to the grid in the Jiangsu province of eastern China. Shares of JinkoSolar advanced 6.2% on Apr 16, 2014, to close at $27.35.

The company’s 24 MW power plant in Xinyi and 15 MW power plant in Lianyungang were connected to the grid. So far, a total of 252 MW of solar PV power projects have been connected to the grid, demonstrating JinkoSolar’s commitment to its downstream business. The two latest solar projects will receive government subsidies for 20 years – 1.125 RMB/KWh for the Xinyi plant and 1.1 RMB/KWh for the Lianyungang power plant.

JinkoSolar’s shares have skyrocketed 350% last year and a sharp 14.6% so far this year. The upside to some extent can be attributed to JinkoSolar’s successful efforts to foray into the downstream business. The company still has a lofty backlog of domestic utility-scale projects which along with a steady rebound in solar panel prices is expected to boost its margins ahead.

JinkoSolar swung to profit in the fourth quarter 2013 with adjusted earnings coming in ahead of the Zacks Consensus Estimate. In fact, the company has posted a positive earnings surprise for the past four consecutive quarters, with an average positive surprise of 326.8%. The robust results reflect a diversified customer base and improvement in operational efficiency in a rapidly changing solar power environment.

The highlight of the 2013 results was the company’s record solar product shipments. Last year, total shipments were at an all time high of 1,933.1 MW, up 62.7% from the prior year.

In 2013, 213 MW of solar PV projects were connected to China’s electricity grid. JinkoSolar expects to add an additional 400 MW this year. The company has a pipeline of projects totaling 700 MW in utility scale systems and 400 MW in distributed systems.

Additionally, this Zacks Ranked #2 (Buy) company has gradually transformed its operations from a traditional manufacturer to a one-stop energy solution provider like other solar companies, Yingli Green Energy Holding Co. Ltd. (YGE - Snapshot Report) and Trina Solar Limited (TSL - Snapshot Report). China now expects solar installation for 2014 of 14 gigawatt. This focus on renewable energy development in China will definitely strengthen demand for both solar farms and distributed PV systems.

Another Chinese solar power products manufacturer JA Solar Holdings Co., Ltd. (JASO - Analyst Report) is also progressing well on its utility-scale solar projects. The company caters to a geographically diversified customer base, spread across Asia, Europe, Africa, and North and Latin America.

Read the Full Research Report on JASO
Read the Full Research Report on TSL
Read the Full Research Report on JKS
Read the Full Research Report on YGE


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