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JinkoSolar (JKS) Clinches an Investment Framework Agreement
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JinkoSolar Holding Co., Ltd.’s (JKS - Free Report) subsidiary, Jinko Solar Co (Jiangxi Jinko), recently clinched an investment framework agreement with the Management Committee of Transformation Comprehensive Reform Demonstration Zone of Shanxi Province. The deal highlights the construction of an integrated project that will involve manufacturing monocrystalline silicon pull rods, silicon wafers, solar cells and modules.
Per the deal, Jiangxi Jinko is accountable for establishing manufacturing lines that will boast a total annual production capacity of 56 gigawatts (GW) for each component. The project has been divided into four phases, with each phase adding 14 GW of annual production capacity. The first and second phases are anticipated to begin operations in the first and second quarters of 2024, respectively, and the third and fourth phases in 2025.
Such development projects in terms of manufacturing capacity should bolster JKS’ long-term growth trajectory.
JinkoSolar’s Growth Prospects
JinkoSolar enjoys a leading position in solar product manufacturing and boasts a strong line-up of production facilities comprising 14 of them. As of Dec 31, 2022, the company had an integrated annual capacity of approximately 65 GW for mono wafers, 55 GW for solar cells and 70 GW for solar modules.
In particular, JinkoSolar is a leading solar module manufacturer and enjoys strong demand, which boosts its revenue growth significantly. Revenues from sales of solar modules increased by 112.6% in 2022, primarily due to a significant increase in the shipment of solar modules.
Going forward, the company expects module shipments in the range of 60-70 GW for the full-year 2023, with its N-type module shipments to lead growth and increase by about 60% from the 2022 levels. Also, as JKS continues to invest in N-type capacity and attains the expansion strategy for growth, it may reap a handful of returns from its solar module manufacturing business, thus boosting its overall growth prospects.
Opportunities Ahead
Per the latest report from the Solar Energy Industries Association (“SEIA”), 20.2 gigawatts direct current (GWdc) of solar PV capacity were added in the United States in 2022, with solar contributing half of the new electricity-generating capacity.
Going forward, the SEIA suggests that in the next 10 years, the expansion of the solar industry is likely to accelerate and grow five times higher, bringing the total installation to 700 GWdc by 2033 from 141 GW today. Solar players that stand to gain in the U.S. solar market are as follows:
Enphase Energy (ENPH - Free Report) : It enjoys a valuable position in the U.S. solar market. The company’s revenues increased 28% year over year in the United States in the last reported quarter. ENPH also began manufacturing at Flex Romania in the first quarter of 2023, bringing the quarterly capacity to approximately six million microinverters.
Enphase boasts a long-term (three-five years) earnings growth rate of 26%. The Zacks Consensus Estimate for ENPH’s 2023 earnings has been revised upward by 0.5% in the past 60 days.
Emeren Group Ltd (SOL - Free Report) : For Emeren Group, the United States continues to be a large and lucrative market. The company had mid-to-late-stage projects of 742 MW in the United States as of Dec 31, 2022. Additionally, its projects are under development in Alabama, California, Illinois and Pennsylvania.
The Zacks Consensus Estimate for SOL’s 2023 sales suggests a growth rate of 85.6% from the prior-year reported figure. The Zacks Consensus Estimate for its 2023 earnings has moved upward by 3% in the past 60 days.
First Solar (FSLR - Free Report) : After opening its third manufacturing facility in the United States, the company now projects to build its fourth U.S. manufacturing facility, which is expected to commence operations in late 2024. First Solaris also eyeing opportunities to expand its manufacturing footprint at its existing facilities in Ohio. Such production ramp-up expectations should enable FSLR to maintain its position as the largest U.S. solar module manufacturer.
The Zacks Consensus Estimate for First Solar’s 2023 sales suggests an improvement of 32.3% from the last year’s comparable figure. Its Zacks Consensus Estimate for 2023 earnings has been revised upward by 15.4% in the past 60 days.
Price Movement
In the past six months, shares of JinkoSolar have risen 1.5% against the industry’s fall of 22.6%.
Image: Bigstock
JinkoSolar (JKS) Clinches an Investment Framework Agreement
JinkoSolar Holding Co., Ltd.’s (JKS - Free Report) subsidiary, Jinko Solar Co (Jiangxi Jinko), recently clinched an investment framework agreement with the Management Committee of Transformation Comprehensive Reform Demonstration Zone of Shanxi Province. The deal highlights the construction of an integrated project that will involve manufacturing monocrystalline silicon pull rods, silicon wafers, solar cells and modules.
Per the deal, Jiangxi Jinko is accountable for establishing manufacturing lines that will boast a total annual production capacity of 56 gigawatts (GW) for each component. The project has been divided into four phases, with each phase adding 14 GW of annual production capacity. The first and second phases are anticipated to begin operations in the first and second quarters of 2024, respectively, and the third and fourth phases in 2025.
Such development projects in terms of manufacturing capacity should bolster JKS’ long-term growth trajectory.
JinkoSolar’s Growth Prospects
JinkoSolar enjoys a leading position in solar product manufacturing and boasts a strong line-up of production facilities comprising 14 of them. As of Dec 31, 2022, the company had an integrated annual capacity of approximately 65 GW for mono wafers, 55 GW for solar cells and 70 GW for solar modules.
In particular, JinkoSolar is a leading solar module manufacturer and enjoys strong demand, which boosts its revenue growth significantly. Revenues from sales of solar modules increased by 112.6% in 2022, primarily due to a significant increase in the shipment of solar modules.
Going forward, the company expects module shipments in the range of 60-70 GW for the full-year 2023, with its N-type module shipments to lead growth and increase by about 60% from the 2022 levels. Also, as JKS continues to invest in N-type capacity and attains the expansion strategy for growth, it may reap a handful of returns from its solar module manufacturing business, thus boosting its overall growth prospects.
Opportunities Ahead
Per the latest report from the Solar Energy Industries Association (“SEIA”), 20.2 gigawatts direct current (GWdc) of solar PV capacity were added in the United States in 2022, with solar contributing half of the new electricity-generating capacity.
Going forward, the SEIA suggests that in the next 10 years, the expansion of the solar industry is likely to accelerate and grow five times higher, bringing the total installation to 700 GWdc by 2033 from 141 GW today. Solar players that stand to gain in the U.S. solar market are as follows:
Enphase Energy (ENPH - Free Report) : It enjoys a valuable position in the U.S. solar market. The company’s revenues increased 28% year over year in the United States in the last reported quarter. ENPH also began manufacturing at Flex Romania in the first quarter of 2023, bringing the quarterly capacity to approximately six million microinverters.
Enphase boasts a long-term (three-five years) earnings growth rate of 26%. The Zacks Consensus Estimate for ENPH’s 2023 earnings has been revised upward by 0.5% in the past 60 days.
Emeren Group Ltd (SOL - Free Report) : For Emeren Group, the United States continues to be a large and lucrative market. The company had mid-to-late-stage projects of 742 MW in the United States as of Dec 31, 2022. Additionally, its projects are under development in Alabama, California, Illinois and Pennsylvania.
The Zacks Consensus Estimate for SOL’s 2023 sales suggests a growth rate of 85.6% from the prior-year reported figure. The Zacks Consensus Estimate for its 2023 earnings has moved upward by 3% in the past 60 days.
First Solar (FSLR - Free Report) : After opening its third manufacturing facility in the United States, the company now projects to build its fourth U.S. manufacturing facility, which is expected to commence operations in late 2024. First Solaris also eyeing opportunities to expand its manufacturing footprint at its existing facilities in Ohio. Such production ramp-up expectations should enable FSLR to maintain its position as the largest U.S. solar module manufacturer.
The Zacks Consensus Estimate for First Solar’s 2023 sales suggests an improvement of 32.3% from the last year’s comparable figure. Its Zacks Consensus Estimate for 2023 earnings has been revised upward by 15.4% in the past 60 days.
Price Movement
In the past six months, shares of JinkoSolar have risen 1.5% against the industry’s fall of 22.6%.
Image Source: Zacks Investment Research
Zacks Rank
JinkoSolar currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.