JA Solar Holdings, Co., Ltd.NASDAQ
Thu, Oct. 6, 3:24 PM
- Formerly bearish Axiom Capital analyst Gordon Johnson upgrades his rating on the solar energy sector (TAN +0.5%) by two notches to Overweight from Underweight, and raises his ratings on Yingli Green Energy (YGE +4.6%), Trina Solar (TSL +1.3%) and JA Solar (JASO +4.5%) to Buy from Sell, as well as SolarCity (SCTY -2.6%) to Hold from Sell.
- A key reason for Johnson's "new-found solar optimism" is China's decision to cut solar subsidies, which could result in ~25 GW of Chinese “pull-in” demand in H1 2017, suggesting a undersupply in the solar market that should push prices higher.
- Johnson believes the stronger demand will cause the prices of all kinds of solar equipment to surge, resulting in higher margins and multiples for many solar companies.
- Also: OTCPK:SUNEQ +63% (see earlier), CSIQ +0.7%, SPWR +0.3%, FSLR -0.3%.
Wed, Oct. 5, 3:02 PM
Wed, Sep. 28, 9:58 AM
- JA Solar (JASO +1.9%) says it is withdrawing from a European Union program that spares the company from paying tariffs in exchange for agreeing to a minimum price-floor for its products.
- JASO says the minimum price set by the European Commission’s Price Undertaking program is outdated and considerably higher than average selling prices in the bloc, and that all future panels sold to the EU will be manufactured outside of China, allowing it to circumvent the tariffs.
- JASO is the second manufacturer after Trina Solar (TSL -0.3%) to opt out of the EC’s Price Undertaking, which was set up in 2013 to allow Chinese exporters to avoid anti-dumping and anti-subsidy duties on solar cells imposed by the EU.
Wed, Aug. 17, 9:29 AM
- JA Solar Holdings (NASDAQ:JASO) reported Q2 results below expectations, though posted increases across multiple shipment categories.
- Total shipments of 1,380.8 MW (1,229.3 MW of external modules and cells, 151.5 MW attributed to downstream projects). External shipments grew 55% Y/Y and 18.4% sequentially.
- Module and module tolling shipments (1,134.2 MW) increased 58% Y/Y and 23.4% sequentially. Cell and cell tolling shipments (95.1 MW) increased 29.6% Y/Y though declined 20% sequentially.
- Net revenue ($619M) grew 18.6% sequentially.
- Gross margin of 15.3% (down 110 basis points Y/Y and 130 basis points Q/Q).
- Operating profit of $28.3M vs. $23.5M Y/Y and $33.6M Q/Q. Net income of $24.7M vs. $20.5M Y/Y and $23.8M Q/Q. Cash and cash equivalents decreased $48.3M during the quarter to $303M.
- Projects Q3 total cell and module shipments of 1,200 MW - 1,300 MW and FY 2016 of 5.2 GW - 5.5 GW with 250 MW - 300MW of downstream projects shipments.
- Chairman and CEO Baofang Jin: "As expected, China was our strongest market in the quarter, driven by accelerated activity ahead of subsidy reductions that occurred this summer. While regulatory change should slow the domestic Chinese market in the second half of the year, we believe our balanced global footprint and flexible business model will allow us to adjust to evolving market conditions."
- Conference call
- Press release
Wed, Aug. 17, 9:22 AM
Wed, Aug. 17, 7:34 AM
Tue, Aug. 16, 5:30 PM
Wed, Aug. 10, 3:25 PM
- Analysts are taken aback by SunPower's (SPWR -29.6%) "guidance bomb" which calls for 2016 gross margins of 9.5%-11.5% instead of 13%-15% amid slowing demand for utility-scale solar projects and more competition in the panel market.
- The surprise is weighing on other stocks in the group: FSLR -7.5%, CSIQ -8.7%, SEDG -9.8%, VSLR -3.1%, JASO -4.5%, SolarCity SCTY -0.9%, SUNE -1.9%, Trina Solar TSL +0.1%.
- At least six firms slammed the stock with downgrades - J.P. Morgan, Oppenheimer, Deutsche Bank, Janney Capital, Credit Suisse and Avondale.
- R.W. Baird, who maintained his Outperform rating but slashed his price target to $21 from $37, said during SPWR's earnings conference call that he felt "blindsided... when you guys have publicly spoken over the past near couple of weeks, we didn’t hear any kind of hint of this at all."
- Credit Suisse’s Patrick Jobin, who cuts his rating to Neutral from Outperform as well as his price target to $12 from $32, says management now faces a credibility problem.
- Not everyone is negative: BofA/Merrill says SPWR's reduced guidance was a disappointment but the stock remains a Buy due to its technology and efficiency advantages, pipeline and backing from global energy giant Total.
Fri, Jun. 24, 2:10 PM
- Needham solar analyst Edwin Mok sees significant implications for the industry from the Brexit vote, amplifying bearishness on several names.
- The biggest hit will come for module and inverter makers like First Solar (FSLR -5.3%), along with Chinese makers, including Trina Solar (TSL -4.5%), JinkoSolar (JKS -5.6%), Canadian Solar (CSIQ -10.4%) and JA Solar (JASO -4.1%), he writes. A weaker euro means price impact: "Additionally, if Brexit results in slower demand, it could exacerbate module oversupply just as multiple producers are adding capacity. This in turn could also drive prices lower."
- A notable exception for Mok is SolarEdge (SEDG -4.5%), for which he maintains a Buy. Still: "The vast majority of [SEDG] sales are priced in the euro. With limited cost infrastructure in Europe as a natural hedge, weakness in the euro would have a direct impact to SEDG’s bottom line."
- And U.S. firms like SolarCity (SCTY -2.4%), Sunrun (RUN -7.4%) and Vivint (VSLR -4.7%) could benefit with zero international exposure and possibly lower costs of capital.
Fri, Jun. 3, 2:11 PM
- Solar stocks are lower today alongside Roth Capital's bearish report on the sector: Trina Solar (NYSE:TSL) is off 6%, JA Solar (NASDAQ:JASO) is 6.4% lower, Yingli Green Energy (NYSE:YGE) is down 2.4%, and JinkoSolar Holdings (NYSE:JKS) is down 2.5%.
- “Heading into H2’16, we are cautious on our entire group of upstream manufacturers given the threat of overcapacity in Q3 as demand in China weakens,” says Roth's Philip Shen.
- The firm downgraded Trina Solar to Neutral with concerns about ASP declines, and lowered its price target to $8 from $12 (now implying 6% upside from today's lowered price). Exposure to the U.S. market might give Trina some protection against the Chinese demand threat.
- Meanwhile, a difference in exposure has Roth very concerned about JA Solar -- also downgraded to Neutral with an $8 price target (now 9% upside from today's lower price). There's limited visibility into second-half bookings, and again: “As a Tier 1 manufacturer, we believe the company will be able to sell all the product it produces. The issue will be one of ASPs, in our view."
- JinkoSolar fares better, maintained at Buy but with a lower price target as well (to $30 from $35, implying 41.7% upside). Margins and improving geographic diversification put the firm in better position than peers, Shen says. Demand's still a worry “given the potential for an air pocket due to the FIT cut in China expected at the end of June."
Fri, May 27, 7:03 AM
Thu, May 26, 5:30 PM
Mon, Apr. 25, 7:28 PM
- SunEdison suppliers JA Solar (NASDAQ:JASO) and Trina Solar (NYSE:TSL) are likely not going to see $20.9M owed to them by the alternative-energy flameout, which filed for bankruptcy on Thursday.
- SunEdison says it's going to make payroll and make "certain vendor payments," but that may not apply to trade suppliers, says Credit Suisse's Patrick Jobin.
- It owes JA Solar $10.4M and Trina Solar $10.5M, and: “These are not trivial amounts, potentially impacting full-year earnings 6.6%-11.8% in a ‘worst case’ scenario of not receiving payments."
- Trina's EPS could drop substantially, he says (to $0.32 from $0.41), and JA Solar EPS could drop to $0.43 from $0.61.
- Now read The SunEdison Story: A Few Takeaways »
Tue, Mar. 15, 7:12 AM
- JA Solar Holdings (NASDAQ:JASO): Q4 EPS of $0.49 misses by $0.19.
- Revenue of $709.26M (+23.0% Y/Y) beats by $25.97M.
Mon, Mar. 14, 5:30 PM
Thu, Feb. 25, 4:47 PM
- JA Solar (NASDAQ:JASO) now expects to report Q4 cell/module shipments of 1.32GW-1.35GW, above prior guidance of 1.1GW-1.2GW. Revenue is expected to be in a range of RMB4.4B-RMB4.6B ($674M-$704M), well above a $604.2M consensus.
- Gross margin is expected to be in a 16.4%-17.4% range. Q4 results are due on the morning of March 15.
- JASO +1.8% after hours to $9.08. Canadian Solar hiked its Q4 guidance last week.