Research Desk Line-up: JinkoSolar Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 15, 2017 / Pro-Trader Daily publishes post-earnings coverage on JA Solar Holdings Co., Ltd (NASDAQ: JASO) following the Company's posting of its first quarter fiscal 2017 financial results on May 24, 2017. The solar cell maker reported a 6.4% increase in revenue on a y-o-y basis and provided shipment guidance for Q2 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Semiconductor - Specialized industry. Pro-TD has currently selected JinkoSolar Holding Co., Ltd. (NYSE: JKS) for due-diligence and potential coverage as the Company announced on June 05, 2017, its unaudited financial results for Q1 2017 which ended on March 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on JinkoSolar when we publish it.
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For the first quarter ended March 31, 2017, JA Solar generated net revenue of RMB3.70 billion ($536.4 million), up 6.4% compared to net revenue of RMB3.47 billion in Q1 2016. The y-o-y increase in revenue was primarily driven by strong shipments, partially offset by continued module average selling price (ASP) pressure in the reported quarter. The Company's revenue number had surpassed analysts' consensus of $493 million.
For Q1 2017, JA Solar's gross profit of RMB433.3 million ($63.0 million) decreased 24.7% on a y-o-y basis. The Company's gross margin was 11.7% for the reported quarter, which compared to 16.6% in the year ago same quarter. The decrease in gross margin was primarily due to a decline of ASP of solar modules in Q1 2017.
During Q1 2017, JA Solar's total operating expenses of RMB 353.3 million ($51.3 million) were 9.6% of revenue compared with operating expenses of 10.1% of revenue in Q1 2016. The Company's operating profit was RMB80.0 million ($11.6 million) for the reported quarter compared to RMB223.3 million ($32.4 million) in the year-ago same quarter, while operating margin was 2.2% compared with 6.4% in the prior year's same period. JA Solar's interest expense totaled RMB 83.3 million ($12.1 million) in Q1 2017 compared to RMB67.3 million ($9.8 million) in Q1 2016.
For Q1 2017, JA Solar posted net income of RMB 8.1 million ($1.2 million) compared to RMB 158.0 million ($23.0 million) in Q1 2016. The Company's earnings per diluted ADS were RMB0.17, or $0.03, compared to RMB2.74, or $0.40, in the prior year corresponding quarter. In Q1 2017, JA Solar's non-GAAP earnings per diluted ADS were RMB0.17, or $0.03, compared to RMB 2.33, or $0.34, in Q1 2016. The Company's earnings number beat Wall Street's expectations for a loss of $0.02 per ADS.
During Q1 2017, JA Solar recorded total shipments of 1,392.7 megawatts ("MW"), consisting of 1,325.1 MW of modules, an increase of 44.1% on a y-o-y basis and 50.2 MW of cells to external customers down 57.8% on a y-o-y basis, and 17.4 MW of modules to the Company's downstream projects. External shipments surged 32.5% on a y-o-y basis.
On a geographical basis, demand in China remained solid and represented nearly 40% of JA Solar's total shipments in Q1 2017 compared to 58% on Q1 2016. The Company stated that strong demand in India drove the country up to 31% of its total shipments during the reported quarter compared to 7.7% in Q4 2016. JA Solar's shipment in Japan represented approximately 11% of total shipments. The Company's shipments in North America saw a modest increase sequentially and represented 8% of its total shipments, up from 7% in the prior quarter. Europe represented 5.5% of JA Solar's total shipments in Q1 2017, up from 3.3% in Q4 2016.
As of March 31, 2017, JA Solar's cash and cash equivalents totaled RMB2.3 billion ($332.1 million), reflecting a decrease of RMB283.4 million ($41.2 million) during the reported quarter, and total working capital of RMB0.8 billion ($118.0 million). The Company's total short-term borrowings were RMB3.2 billion ($467.1 million) at the end of the reported quarter, while total long-term borrowings came in at RMB2.9 billion ($425.4 million), of which RMB870.9 million ($126.5 million) were due in one year.
JA Solar stated that during the reported quarter, the change in fair value of warrant derivatives was nil compared with positive RMB23.4 million ($3.4 million) in the year-ago same quarter. The warrants were issued on August 16, 2013 in conjunction with the Company's $96 million registered direct offering, and expired on August 16, 2016.
For Q2 2017, JA Solar is forecasting total cell and module shipments to be in the range of 1,550 to 1,650 MW. The Company expects approximately all of these to be external shipments.
At the closing bell, on Wednesday, June 14, 2017, JA Solar's stock slipped 1.74%, ending the trading session at $6.21. A total volume of 562.97 thousand shares have exchanged hands. The Company's stock price surged 24.20% in the last three months and 18.51% in the past six months. Moreover, the stock soared 30.46% since the start of the year. The stock is trading at a PE ratio of 2.89 and currently has a market cap of $290.07 million.
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