- Slump in Jinko's ADRs `probably not related to the results'
- On track to ship up to 4.5 gigawatts of panels this year
JinkoSolar Holding Co., a Chinese photovoltaic manufacturer, raised its shipment forecast for the year after sales and profit in the third quarter exceeded expectations.
Jinko shipped 1.1 gigawatts of panels in the quarter, boosting sales 58 percent from a year earlier to 4.05 billion yuan ($637.6 million), the Shanghai-based company said in a statement Thursday. That exceeded the 3.6 billion-yuan average of four estimates compiled by Bloomberg.
The company said it expects to deliver 4.2 gigawatts to 4.5 gigawatts of panels for the year, raising the bottom end of its August forecast of 4 to 4.5 gigawatts.
Net income fell to 195.1 million yuan, or 3.12 yuan per ADR, from 280.6 million yuan, or 8 yuan an ADR, a year earlier. Excluding expenses related to issuing convertible notes and some other charges, income of 6.5 yuan an ADR beat the 6.4-yuan average estimate.
Despite the positive results, Jinko’s ADR’s slipped 9.5 percent to $22.67 at the close in New York, the biggest decline in two months. Each ADR is worth four ordinary shares.
Scott Chui, an analyst at Daiwa Capital Markets Hong Kong, said the ADRs are being dragged down by other poorly performing solar companies, notably SunEdison Inc., which fell the most in more than a decade on Nov. 17.
“This is probably not related to the results, because JinkoSolar reported strong results,” Chui said in an interview. “The valuation is very attractive.”