Solar product manufacturer JA Solar Holdings Co. Ltd (JASO - Analyst Report) announced that its board of directors has authorized an aggregate buyback of $100 million of its issued and outstanding American Depositary Shares. The company will have to repurchase the shares within September 30, 2012.

Cash and cash equivalents of the company as of March 31, 2012 were $676.2 million, which prompted the company to leverage its strong financial position for shareholder-friendly moves.

The outstanding shares of the company at the end of the first quarter were 195.7 million. JA Solar will be able to bring down the outstanding share count substantially through the utilization of the repurchase fund. The market also reacted positively to the news; the closing price of $1.06 reflected a gain of 14% from the previous day’s closing price.

The company from time to time authorizes buyback programs taking into consideration the prevailing market conditions. Previously, in August 2011, the board of directors of JA Solar authorized a $100 million buyback of outstanding American Depositary Shares.

The company did not provide any earnings guidance, but the producer of cost efficient solar modules expects its 2012 shipments to be between 1.8GW and 2GW surpassing the 2011 figure of 1.69 GW.

With a gradual increase in sales and decline in the share count, JA Solar will be able to improve its financial results in the forthcoming years. We project a loss per share of 44 cents in 2012, and expect it to come down to a loss per share of 14 cents in 2013.

JA Solar presently retains a short-term Zacks #3 Rank (short-term Hold rating). The company competes with Suntech Power Holdings Co. Ltd. (STP - Analyst Report).

Based in Shanghai, The People’s Republic of China, JA Solar Holdings Co., Ltd. is a manufacturer of high-performance solar power products and sells its products worldwide to solar manufacturers.