JinkoSolar Holding Co. Ltd.( JKS Quick Quote JKS - Free Report) reported third-quarter 2021 adjusted earnings per American Depositary Share (ADS) of 5 cents, which compared favorably with the Zacks Consensus Estimate of a loss of 21 cents. Total Revenues
In the quarter under review, JinkoSolar’s total revenues of $1.33 billion surpassed the Zacks Consensus Estimate of $1.29 million by 3.6%. The top line declined 2.3% on a year-over-year basis due to decrease in solar module shipments.
In third-quarter 2021, JinkoSolar’s total solar module, cell and wafer shipments were 4,993 megawatts (4,671 MW for solar modules, and 322 MW for cells and wafers).
Gross margin during the quarter under review was 15.1% compared with 17% in the prior-year quarter. The decrease in margin was primarily due to cost increases on account of the rise of material prices and a decreasein the average selling price of solar modules in response to the intensified market competition globally.
The company’s total operating expenses increased 24.9% year over year to $183.9 million. The year-over-year downside was primarily dueto an increase in shipping cost.
The company incurred $25.7 million as interest expenses, up 28.1% year over year, as itsinterest-bearing debts increased.
As of Sep 30, 2021, the company's in-house annual mono wafer, solar cell and solar module production capacity was 31 GW, 19 GW (940 MW for N-type cells) and 36 GW, respectively.
As of Sep 30, 2021, JinkoSolar had cash and cash equivalents of $1 billion, down from $1.15 billion as of Dec 31, 2020.
Total interest-bearing debts as of Sep 30, 2021, were $3.69 billion compared with $2.80 billion as of Dec 31, 2020.
Q3 Business Developments
JinkoSolar's percentage of module shipments in the Chinese market in the third quarter doubled compared to the second quarter. Also, in the reported quarter, JinkoSolar's competitive large-size module products accounted for nearly 50% of module shipments, compared with less than 20% in the first half of 2021.
Q4 and 2021 Guidance
For the fourth quarter of 2021, the company expects total shipments to be 7.3-8.8 GW, (solar module shipments in the range of 7 GW to 8.5 GW). Total revenues for the fourth quarter are expected in the range of $1.8 billion to $2.2 billion.
For 2021, JinkoSolar tweaked its estimates for total shipments (including solar modules, cells and wafers) from 25 GW to 30 GW to a newguided range of 22.8 GW to 24.3 GW.
JinkoSolar currently carries a Zacks Rank #3 (Hold). You can see
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