Long term potential for JKS based on the latest QER is phenomenal. If in Q3 they earned $1.42/share, and they projected higher earnings in Q4.
If you conservatively estimate that Q4 earnings will come in at $1.50/share, than a very conservative prediction for FY2014 earnings would be $6/share. At current prices we are just trading at PE of 5.
If Q4 results are good and show EPS over $1.50 I believe that we should see a great run past $45 and possible to $60 in the first half of the 2014.
This is a long term play, and among the Chinese solar stocks it is one of the best bets.
Just like other Chinese solar companies JKS was a distressed company with high risk of default, hence the high interest on borrowing.
If JKS can continue posting great earnings they will be able to easily restructure the debt. If Chinese solar power targets stay in place and JKS keeps their margin above 20%, the 2014 will be a great year.
How do you explain JKS producing 650MW of products and keeping costs at $0.50? Especially with tarrifs to the US that accounted for a sizeable chunk of shipments. That must mean they outsource. Outsourced cells are more expensive in Taiwan to create higher cost basis than $0.50. If not everybody would be doing it.