Earnings Preview: JinkoSolar

| About: JinkoSolar Holding (JKS)

Company Profile

JinkoSolar Holding Co., Ltd. (NYSE:JKS), together with its subsidiaries, engages in designing, developing, producing, and marketing photovoltaic products in the People's Republic of China and internationally.

JinkoSolar is scheduled to report its first-quarter earnings results on June 20, 2012, before market open.

Technical Overview

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JinkoSolar has a market cap of $91.03 million and it is currently trading around $4.07 with a 52-week range of $3.62 to $27.30. The stock has -18.6% price performance for the year 2012. The following table provides the key financial ratios for JinkoSolar:

Key Ratio

Value

Current Ratio

0.82

PEG

0.29

P/E

2.87

Profit Margin

3.70%

Return On Assets (ROA)

3.63%

Return On Equity (ROE)

9.83%

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Recent News

  • On May 21, 2012, JinkoSolar announced it will provide modules for a 50 megawatt (MW) solar project operated by state-owned renewable energy development company GSHHSD in northwestern China.
  • On May 15, 2012, JinkoSolar unveiled its "WING" series solar modules. The sleek, lightweight product line marks a significant upgrade to the company's already robust lineup of premium solar modules for residential and commercial applications.
  • On May 10, 2012, JinkoSolar announced that the company has dismissed the company's previous independent registered public accounting firm, PricewaterhouseCoopers Zhong Tian CPAs Limited Company ("PwC") and engaged Ernst & Young Hua Ming ("EY") as the company's independent registered public accounting firm for the fiscal year ending December 31, 2012.
  • On April 25, 2012, JinkoSolar announced that its mono- and multicrystalline solar modules achieved high yield performance results in PHOTON Laboratory's January 2012 outdoor field tests. New measurements resulted in exceptionally high power output, adding to a trend of strong long-term performance for the company's industry-leading line of products.
  • On April 24, 2012, JinkoSolar Holding Co., Ltd announced that JinkoSolar Co., Ltd. ("Jiangxi Jinko"), one of the company's wholly owned subsidiaries, successfully issued unsecured one-year short-term bonds with a principal amount of RMB300 million on April 23, 2012. The bonds bear a fixed annual interest rate of 6.3%, lower than the current benchmark one-year lending rate of 6.56% and will mature on April 23, 2013.
  • On March 29, 2012, JinkoSolar announced further expansion of its global operations in Asia with the opening of its new office in Singapore.
  • On March 13, 2012, JinkoSolar announced the successful completion of a 35.8kW tracker-based solar system at the Aquarion Water Company's ("Aquarion") D.W. Loiselle Water Treatment Plant at Trap Falls Reservoir in Shelton, Connecticut.

Analyst Guidance and Earnings History

The first-quarter revenue is expected to be $160.50 million when compared with $326.72 million for the same quarter last year. Earnings per share for the first quarter are expected to be a loss of 106 cents a share, down from $2.1 a share in the year-ago period.

The average price target from analyst for JinkoSolar is $5.8 with average rating is HOLD

Out of the last four quarters, Jinko Solar has met or exceeded the EPS estimates two times. The following chart shows the Analyst estimates history and the actual EPS results:

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The following chart shows the annual summary of Sales and Net income for JinkoSolar:

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Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclosure:

I have no positions in any stocks mentioned, but may initiate a short position in JKS over the next 72 hours.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.