JinkoSolar Posts Robust Growth in the Third Quarter of 2018
JinkoSolar Holding Co., Ltd. (“JinkoSolar” or the “Company”) (NYSE: JKS), a global leader in the solar PV industry, announced its unaudited financial results for the third quarter that ended September 30, 2018.
Total solar module shipments hit record high of 2,953 MW, an increase of 5.7% sequentially and 24.4% year-on-year. Total revenues were RMB6.69 billion (US$974.8 million), an increase of 10.5% from the second quarter of 2018 and an increase of 4.3% from the third quarter of 2017.
The overall market increased QoQ largely due to the stability in emerging markets, and developing markets posting a moderate growth. Parallel to this, the continued strength of the Company’s business contributed to the operating profit. The results can also be attributed to JinkoSolar’s focus on strengthening product competitiveness via continuous expansion of technology upgradation, migration and sales expansion of high value-added products, such as Cheetah.
The solar PV market conditions are likely to remain challenging in 2019 amid stiff pricing competition. However, JinkoSolar has responded through the early introduction of the Cheetah product and competitive mid-level models with new features. Its shipments for next year are expected to rise significantly, while earnings will continue to improve as the Company expands sales of new premium models, even as competition is seen to be intensifying.
In addition, different from its competitors, JinkoSolar has its offices spread across different geographies around the globe. All seven regions including North America, China, Europe, Asia, Latin America, Middle East & Africa, ROW, contributed to its record sales of 11-12 GW in 2018. The outlook for Jinkosolar remains strong across next year in all regions thanks to robust demand and highly visible pipeline of orders for its high quality products as well as new product introduced into the market. JinkoSolar will proactively address demand for differentiated products. Over mid and long-term, JinkoSolar expects new opportunities in its business from ongoing transformation in the industry, led by the fact that grid parity will be achieved in more and more countries.
JinkoSolar gave a bullish outlook on the industry saying that demand and market conditions will remain stable while entering post subsidy era.
According to the company, demand in 2019 will stay strong owing to the ongoing shift to higher density and expansion of solar applications. Despite concerns over a slowdown in domestic growth, the company’s growth in overseas market is expected to continue.
2 JinkoSolar Reports Strong Financials in Third Quarter of 2018
JinkoSolar Holding Co., Ltd. (“JinkoSolar” or the “Company”) (NYSE: JKS), a global leader in the solar PV industry, announced its unaudited financial results for the third quarter that ended September 30, 2018.
Total solar module shipments hit record high of 2,953 MW, an increase of 5.7% sequentially and 24.4% year-on-year. Total revenues were RMB6.69 billion (US$974.8 million), an increase of 10.5% from the second quarter of 2018 and an increase of 4.3% from the third quarter of 2017.
The company’s goal of significantly consolidating involvement in the global market step-by-step is making good progress. With its sales guidance unchanged, Jinko Solar is expected to deliver 11-12 GW shipment this year, which enables it to boost its market share up to approximately 15% and much higher in emerging markets. In this way, it is securing the long-term leading role in the overseas market. Different from its peers, JinkoSolar actually has no biggest single market rather, products are balanced and distributed among seven defined regions worldwide.
JinkoSolar solidified its competitive positioning by focusing on value-added products, including Cheetah and Bifacial based on the mono PERC technology. It has ramped up the capacity its flagship Cheetah series, seeking to revitalize the market, since customers have been eager to upgrade, impressed by its power and new features. Investors and developers have also become far more interested in technology and quality because of good project returns. Not to mention the higher margins that are projected by the performance of products used rather than on the comfort of an FIT subsidy. Cheetah has received terrific market response after its first launched in the U.S.
Although there are other companies who have claimed to launch panels up to 400 watt, actually Jinkosolar is the first manufacturer to start the GW scale production and sales of Cheetah up to 400 watt until now. It represents new wafer size and pioneering technologies such as mono PERC and half cut. These features lift the upper power range to the next level. It will ramp up to its full capacity of Cheetah in 2019. It has had a terrific response from the customers because it boosts output and performance significantly without many changes in engineering design. All of that belongs to its comprehensive market initiative. In this way, JinkoSolar is securing the long-term leading role in the global solar PV market.
As for 2019 outlook, strong demand is expected to continue on the back of high adoption of solar, although market conditions are likely to remain challenging amid stiff price competition. However, JinkoSolar has responded through the early introduction of the Cheetah series and competitive mid-level models with new features. Its shipments for next year are expected to rise significantly while earnings will continue to improve as the Company expands sales of new premium models even as competition is seen intensifying.
In addition, Jinkosolar will also leverage its strength in quality to take advantage of the post subsidy situation when developers and investors become have become far more interested in quality when project margins and returns are projected on the performance of the products used rather than the comfort of an FIT subsidy.
Looking into the future, the Company will continue to reinforce product competitiveness based on technology, quality and manufacturing leadership. Furthermore, based on the ever-evolving ecosystem, JinkoSolar aims to offer premium service to its customers and create synergy with other partners. The outlook for Jinkosolar remains strong across next year in all regions, thanks to robust demand and highly visible pipeline of orders for its high quality products as well as new products introduced into the market. JinkoSolar will proactively address demand for differentiated products. Over the mid- and long-term, JinkoSolar expects new opportunities in its business from the ongoing transformation in the industry, led by the fact that grid parity will soon be achieved in more and more countries.
3 Jinko Solar Maintains Global Leadership Post Third Quarter Financial Results
JinkoSolar Hit Record High of 2,953 MW Module Shipments in Third Quarter 2018
JinkoSolar announced its unaudited financial results for the third quarter that ended September 30, 2018. It had a solid quarter with module shipments hitting record high of 2,953 MW, an increase of 5.7% sequentially and 24.4% year-over-year. Total revenues were RMB6.69 billion (US$974.8 million), an increase of 10.5% from the second quarter of 2018 and an increase of 4.3% from the third quarter of 2017. Gross margin was 14.9%, compared to 12.0% in the second quarter of 2018 and, 12.0% in the third quarter of 2017. Income from operations was RMB188.0 million (US$27.4 million), an increase of 98.7% from the second quarter of 2018 and an increase of 104.6% from the third quarter of 2017. For the full year 2018, the Company estimates total solar module shipments to be in the range of 11.5 GW to 11.8 GW.
Strong overseas sales, particularly impressive growth in multiple strategic markets, clearly demonstrates its market leadership and solid execution of globalization.
Turmoil gone, time for grid parity
In the past five months, solar prices dropped 30% roughly after China’s sudden policy change. On one hand, it brought down installation costs for new solar projects, particularly large, utility-scale systems, and spurred new investment opportunities in other countries. On the other hand, it hit smaller companies harder and brought them out, therefore accelerating consolidation.
After a period of turmoil first as the effects spread throughout the global supply chain, eventually, it helped solar compete with conventional power sources without the need of government support, meanwhile it spurred innovation and competition, making the industry more efficient and making the strong stronger. Ultimately, JinkoSolar set a good example.
Outlook of JinkoSolar in 2019
The current demand environment continues to be strong, despite some softness in a few spots. With a strong product portfolio and robust order pipeline, coupled with increasingly favorable grid parity environment, the company is well positioned to fuel its growth next year and years after. We continue to see strong demand for Jinkosolar’s products for most end-markets and from most geographies as customers are increasingly relying on Jinkosolar as their chosen partner in superior technology and quality.
In 2019, it is expected to further extend its competitive lead in the industry and also realize full potential capacity of Cheetah products.
4 JinkoSolar posts significant shipment growth in Q3 amid insecurity in the PV market
JinkoSolar has reported a surge in quarterly earnings thanks to its strong overseas sales. Total solar module shipments were 2,953 megawatts (“MW”), an increase of 5.7% from 2,794 MW in the second quarter of 2018 and an increase of 24.4% from 2,374 MW in the third quarter of 2017. Gross margin increased 2.9 percentage points Q-over-Q to reach 14.9% in the third quarter. It was attributable to a higher level of capacity utilization, cost improvement. The better-than-expected profit forecast was supported by the release of JinkoSolar’s latest flagship model, Cheetah.
Posted earnings in the third quarter as panel sales continued, despite that some analysts warn that timing the market is growing difficult. High quality products boosted the company’s performance, driven by solid-state demand for its panels, since investors become more interested in the performance of technology and product used rather than on the comfort of a FIT subsidy. Some analysts predict that the panel business of JinkoSolar will be in an upbeat mood in 2019 as well. The demand will continue to grow, with an expectation of better-than-industry yearly growth. Looking to 2019, the industry will remain in short supply throughout the whole year while the market is likely to turn tight from the second half of 2019. Overall, the market is projected to grow YoY, especially in developed economies, including US, China, Europe. Jinkosolar is expected to further improve profitability by focusing on sales of premium products and maximizing shipments during the year-end peak season. The Company’s release of Cheetah capacity is expected to further solidify its position as a leader in the market.
5 JinkoSolar has reported record PV module shipments in the third quarter of 2018
JinkoSolar achieved strong quarterly results in Q3 2018 – proof of the strength of its business. Both revenue and operating profit increased from the previous quarter. The Company posted 2,953MW shipment, an increase of 5.7% from the second quarter of 2018 and an increase of 24.4% from the third quarter of 2017. Total revenues were RMB6.69 billion (US$974.8 million), an increase of 10.5 from the second quarter of 2018 and an increase of 4.3% from the third quarter of 2017.
Following a successful restructuring of its product line-up, JinkoSolar led expansion of the premium market, winning more than 30% market share in emerging markets. Despite concerns over a slowdown in domestic growth, increase in overseas market continued. Earnings increased QoQ, mainly due to improved factory utilization, as demand from major customers for panels remained constant. It seems that the company has established a base for achieving stable earnings going forward. It closely monitored the market condition and the supply and demand to maintain sustainable earnings in the mid- to long-term with the industry’s leading technology and quality. In the fourth quarter, earnings are expected in increase QoQ amid strong seasonality for panels. Looking ahead to 2019, sales are expected to rebound on recovering demand from domestic market. JinkoSolar aims to increase market share by actively addressing customer demand while enhancing technological and price competitiveness. Although intensified competition and the industry’s capacity expansion may limit improvements in profits, the Company will continue to focus on profit with differentiated high-end products such as Cheetah.
Source: JinkoSolar
