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JA Solar Holdings Co., Ltd.

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JA Solar’s third-quarter 2016 results exceeded the Zacks Consensus Estimate on both the top and bottom-line fronts. However, on a year-over-year basis, the outcome was mixed. While revenues improved on strong shipments, earnings deteriorated substantially. Geographically, JA Solar witnessed strong shipments in South and North America. However, the company posted a dismal performance in its domestic market owing to lower demand in China. Also its slashed shipment guidance for 2016 has dampened investors’ sentiments. Nevertheless, JA Solar stands to gain from its geographically advantageous position in spite of the trade war with the U.S. Moreover, the company’s attractive product mix as well as its ability to adapt to changing market scenarios, is expected to boost revenues going forward. However, headwinds like anti-dumping policies by the U.S. and stiff competition in China, could pose serious threat to its profits.

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