- JA Solar boasts some of the highest efficiency panels in the world.
- The company employs a highly vertically integrated manufacturing model and is planning to extend its business further into the downstream solar segment.
- JA Solar has a healthy balance sheet, with one of the lowest levels of debt in the industry.
- Although there are many risks facing JA Solar, the company has proven itself more than capable in dealing with obstacles.
JA Solar Holdings: A Company With High Profit Margins For Investors
- JASO is a company worth noticing and putting your money into.
- Investors can make a good profit in the short term.
- Its latest-quarter results are expected to be even better.
Why JA Solar Looks Like A Good Option To Benefit From The Solar Industry's Growth
- The solar market is growing at a rapid pace across the globe as installations are increasing, opening up a significant opportunity for JA Solar.
- JA Solar has made a smart move by shifting its business from cells to modules, as this strategy is helping it deliver impressive growth.
- JA Solar is tapping different international markets in a smart manner with the help of its local associates.
- JA Solar's valuation is cheap, and given the rate at which its earnings are expected to grow, it could turn out to be a smart investment.
- JA Solar reported solid Q3 earnings, beating both top line and bottom line estimates. .
- The company has successfully transformed from manufacturing solely solar cells to manufacturing predominantly higher margin solar modules.
- Japan, which accounted for 36% of shipments, could be a weakness going forward as a falling Yen lowers margins.
- JA Solar posted strong results and excellent guidance including visibility into the first quarter of 2015.
- The low price to book ratio and strong earnings performance make the stock a winner for 2015.
- Stock buy back announced by the management, is substantial and can add significant tailwind to the stock performance.
- JA Solar beats market expectations and reports both good topline and bottomline during Q314.
- Stock remains extremely cheap on all valuation measures.
- Company is benefiting from strong industry growth as capacity remains sold out.
- JA Solar second quarters were underwhelming due to soft demand and ASPs in China and product mix.
- Company's forecast on Q3/Q4 ASPs may be somewhat optimistic and we see risk of further ASP declines and margin pressure.
- The Company's project business, while small, may provide sufficient cushion to overcome the turbulence.
- JA Solar missed earnings estimates for Q2, but posted solid year-over-year gains.
- The earnings miss was a disappointment, but I still have a positive long-term outlook for the company.
- Although I didn't anticipate an earnings miss in my last article, I still think JA Solar will perform well over the long term.
JA Solar Files Shelf Registration: Sign Of Things To Come?
- JA Solar filed an unadvertised self filing for $250M.
- The size of the filing in relationship to its market cap likely indicates strength.
- Coming ahead of Q2 earnings we see this as a positive sign.
- ReneSola nearly qualified for the SEC's watch list for abusive short selling.
- JA Solar did make the list several times in May.
- Frequent small transactions also point towards price manipulation.
- Longs need not be afraid, but naked options trading isn't recommended.
JA Solar's 20.4% Cells: A Fable About How U.S. Companies Keep Underestimating The Chinese
- JA Solar has become the first company to initiate high-volume production of 20%+ p-type sole cells.
- The company's technological innovation and volume ramp contrast with SolarCity's plans.
- We believe U.S. companies and investors perennially underestimate Chinese ingenuity and technological advantage.
JA Solar: Does This Second Fiddle Company Deserve A Second Look?
- JA Solar is a below the radar under appreciated solar company with good execution track record.
- Is spite of its good all around performance, the Company is negatively impacted by the Commerce decision.
- We see very little downside at the current valuation level but at the same time we do not see much upside either until the dust settles.
JA Solar: A Good Buy After A Successful Transformation
- Diversification and integration – forward looking commitment by the company towards solar.
- Low valuation, strong geographical foothold and decent Q1 results offer a great opportunity to invest in this solar stock.
- Low debt acts as a cherry on the cake.
- JA Solar reported earnings early this morning, with EPS of 23c on revenues of $366m.
- The stock trades at a discount compared to peers.
- Options provide a way to invest in the stock at discounted rates. Warning: they are thinly traded.
JA Solar: Significant Upside Is Likely On Valuation And Growth
- Improvements in the solar market have led JA Solar to turn a profit for Q4 2013.
- Strong shipments are expected to continue in 2014.
- Multiple fundamentals are improving for the company which should lead to higher stock prices.
JA Solar: Despite The Strong Rally, Stock Remains A Buy
Earnings Preview: JA Solar Reports Q2 Earnings Aug. 29
Yesterday, 2:09 PM
- Though WTI crude is still below $46/barrel and the Nasdaq is only up 0.3%, beaten-down solar stocks are posting big gains (TAN +3.9%). Quite possibly helping: Pres. Obama has said the U.S. will help finance an Indian effort to install 100GW of solar capacity by 2022.
- The head of an Indian think tank estimates such an effort would cost $160B. India says it's seeking $100B worth of investments over 7 years. The country's bureaucracy/red tape has often stalled major foreign investments; the new government has repeatedly promised to change that.
- First Solar (FSLR +4.1%) and SunEdison (SUNE +4.1%) are among the companies to have struck deals for Indian solar projects. SunEdison has announced plans to invest up to $4B in an Indian solar manufacturing plant through a JV. First Solar and Trina (TSL +5.4%) are weighing plans to build their own local plants.
- Other notable gainers: SCTY +4.7%. JKS +7.5%. SOL +5.8%. SPWR +2.9%. CSIQ +4.6%. JASO +4.4%. RGSE +3.7%. ASTI +9.3%. HSOL +3.2%. DQ +3.7%.
Tue, Jan. 20, 12:40 PM
- Chinese solar plays JinkoSolar (JKS -6.7%), ReneSola (SOL -3.9%), JA Solar (JASO -3.5%), Daqo (DQ -9.3%), and Trina (previously covered) are posting sizable losses. As is Canadian Solar (CSIQ -10%), which depends heavily on its Chinese manufacturing ops.
- The decline comes as WTI crude oil falls by 3.7% to $46.89/barrel, and Henry Hub natural gas falls by 8.6% to $2.86/mmBtu. Also: The Shanghai exchange fell 7.5% on Monday following 3-month ban on new margin trading accounts, before rising 1.8% today. The Nasdaq is currently down 0.3%.
- Saudi Arabia has provided a bit of bad news, stating it's pushing back the completion date for its massive clean energy program (includes $109B worth of solar investments) by 8 years to 2040. Unlike many of its top energy customers, Saudi Arabia depends heavily on oil (suddenly much cheaper) for electricity production.
- U.S. solar stocks are also underperforming, but less dramatically. The Guggenheim Solar ETF (TAN -2.3%) is less than $0.30 away from its 52-week low of $31.77.
- Update: Also potentially hurting: A Chinese government study found 23% of solar panel samples taken from local firms featured glass coating defects that can affect long-term power efficiency. The defects were in products set to be used in China.
Tue, Jan. 6, 2:47 PM
- The broad Monday selloff in solar names that accompanied WTI crude's plunge towards $50/barrel has been followed by major Tuesday losses (TAN -2%) as WTI falls by another $2.34 to $47.70/barrel.
- Brent crude is down by $2.44 to $50.67/barrel, and Henry Hub natural gas is up by $0.03 to $2.91/mmBtu (still down sharply over the last few months). The Nasdaq is down 1%.
- 3%+ decliners: SUNE -5.9%. SPWR -4.3%. JKS -5.8%. DQ -9.4%. VSLR -4.6%. YGE -4.4%. HSOL -4.5%. ENPH -7.6%. CSUN -8.8%. TSL -3.4%. ASTI -10.2%. CSIQ -3.9%.
- SA author Short/Long Trader sees a buying opportunity. Though admitting a "historic connection" exists between oil prices and renewable investment, the author sees little impact on rising solar demand from low oil prices going forward.
- Trina, Canadian Solar, and JA Solar (JASO -1.4%) are Short/Long's favorite picks, given their low valuations - all three have P/Es below 10 - and generally healthy fundamentals.
Dec. 31, 2014, 1:43 PM
- Given recent government comments about supporting M&A (along with various policy incentives) to strengthen the Chinese solar industry, Brean thinks smaller firms could be snapped up, thereby providing a stronger supply/demand and pricing environment for bigger names.
- Trina (TSL +7.9%), JA Solar (JASO +3%), Yingli (YGE +1.8%), JinkoSolar (JKS +4%), and Daqo (DQ +4.7%) are higher on a quiet New Year's Eve trading day. Trina might also be getting a lift from announcing it has set a new record (324.4Wp) for "power output from a high efficiency multi-crystalline silicon PV module." The accomplishment follows the development of a solar cell with 20.76% efficiency.
- This year has seen debt-laden LDK Solar (OTCPK:LDKYQ) strike a restructuring deal and get moved to the pink sheets; shares are currently at $0.08. Last year, Suntech's Wuxi, China unit filed for bankruptcy and was later sold to solar cell maker Shunfeng Photovoltaic.
- Last week: Chinese solar firms reportedly looking to build overseas plants
Dec. 26, 2014, 5:16 PM
- Taiwanese solar industry sources tell Digitimes leading Chinese solar module vendors "have plans to set up overseas production lines to avoid US antitrust taxation."
- Believing a large gap exists between U.S. solar demand and what U.S. and European module makers can supply - trade group SEIA forecasts U.S. installations will rise from 6.5GW in 2014 to 8.5GW in 2015 and nearly 12GW in 2016 - some Chinese firms reportedly "plan to set up overseas module and cell production lines with an estimated total annual capacity of 2GWp."
- The report comes after the DOC made final decisions to impose new tariffs on Chinese module makers, and thereby close a loophole that allowed the companies to avoid 2012 tariffs (still in place) by using non-Chinese cells. The ITC is expected to rule on the DOC's move by Jan. 20.
- Chinese module vendors: TSL, YGE, SOL, JKS, HSOL, JASO
Dec. 17, 2014, 4:37 AM
- The Commerce Department is hiking import duties on solar energy equipment from China and Taiwan, closing a loophole that had allowed Chinese manufacturers to avoid tariffs and sell at illegally low prices in the U.S.
- Steep anti-dumping duties will now placed on imports of most solar panels made in China and solar cells from Taiwan, likely raising the cost of solar energy at a time of falling oil prices.
- Related tickers: FSLR, SPWR, SUNE, SCTY, CSIQ, SOL, YGE, DQ, ENPH, TSL, JASO, RGSE, JKS, CSUN, VSLR, HSOL , STP, OTC:MIDIL
Dec. 8, 2014, 8:03 AM| Comment!
Dec. 5, 2014, 2:35 PM
- Recently bludgeoned in tandem with plunging oil prices and a broad selloff in anything energy-related, Chinese solar stocks are finishing the week on a high note.
- Notable gainers: JKS +3.5%. DQ +7.3%. JASO +4.9%. TSL +4.5%. YGE +2.5%. Canadian Solar (CSIQ +5.7%), which depends heavily on its Chinese manufacturing ops, is also faring well.
- Many solar bulls have been busy arguing the link between oil prices and solar demand is very limited. WTI crude has fallen to $66.14/barrel today.
- Earlier: SolarCity rallies following CEO's CNBC appearance
Dec. 1, 2014, 12:15 PM
- With the Nasdaq down 1.3%, solar stocks are adding to the steep Friday losses they saw after OPEC declined to cut production, sparking a huge selloff in oil prices and anything energy/commodity-related. Oil prices have bounced a little today, but WTI crude is still only around $68/barrel.
- Solar bulls have noted oil only accounts for a small percentage of global electricity production, and that solar stocks have already seen plenty of pain this year. The Guggenheim Solar ETF (TAN -5.2%) is now down 34% from a March high of $51.07.
- Major decliners: FSLR -6.3%. SPWR -8.4%. SCTY -6%. SUNE -6.4%. SOL -12.8%.JKS -8.1%. CSUN -8.5%. CSIQ -9.3%. DQ -10.3%. VSLR -7.2%. TSL -7.8%. YGE -9.4%. RGSE -7.4%. HSOL -9.5%. TERP -5.8%. JASO -5.2%.
Nov. 28, 2014, 10:55 AM
- Solar stocks are getting hit hard (TAN -5.1%) after OPEC opted against cutting oil production, leading crude prices to plunge below $70/barrel and sparking huge selloffs in energy/commodity stocks. Fuel cell stocks aren't faring much better.
- Solar decliners: FSLR -6.8%. SPWR -6%. SUNE -5.7%. SCTY -2.9%. CSIQ -10.7%. SOL -9.1%. YGE -7.3%. DQ -7.2%. ENPH -6.8%. TSL -6.9%. JASO -7.5%. RGSE -3.9%. JKS -6.9%. CSUN -3.5%. VSLR -3.7%. HSOL -3.8%.
- Fuel cell decliners: BLDP -6.1%. FCEL -4.5%. PLUG -2.3%. HYGS -5.3%.
Nov. 21, 2014, 6:45 PM
- Ethanol and other biofuel groups are declaring victory, as the EPA today said a decision to finalize blending requirements for 2014 - first proposed more than a year ago - has been delayed.
- The delay gives hope to ethanol producers that the EPA will rethink how it proposes the annual biofuels levels; the draft 2014 biofuels levels were much lower than the ethanol industry wanted.
- Oil company lobbyists opposed to the law say the idea of setting a retroactive quota shows the EPA is incapable of managing the program; the American Fuel & Petrochemical Manufacturers, which represents energy companies, plans to sue the EPA for failing to issue the 2014 requirements.
- Ethanol stocks: ADM, GPRE, GEVO, MEOH, SZYM, REX, CDTI, REGI, FF, AMRS, ANDE
- Related refining stocks: VLO, HFC, MPC, TSO, WNR, ALJ, PSX, PBF, DK, NTI, ALDW
- Related coal stocks: BTU, WLT, CNX, ACI, ANR, YZC, ARLP, AHGP, NRP, PVG, PVA, OXF, CLD, WLB, SCOK
- Related solar stocks: JASO, SPWR, TSL, FSLR, CSIQ, YGE, EMKR, SOL, JKS, CSUN, SCTY, RGSE, SUNE, HSOL, DQ, ASTI, OTCQB:SOPW
- ETFs: XLE, ERX, VDE, OIH, ERY, DIG, DUG, IYE, FENY, PXJ, RYE, FXN, DDG, FUE, KOL, TAN
Nov. 21, 2014, 10:28 AM
- The EPA will abandon its proposed rule setting renewable fuel targets for 2014, with an announcement to come today, according to a Bloomberg report.
- Ethanol stocks: PEIX, GPRE, GEVO, MEOH, SZYM, REX, CDTI, REGI, FF, AMRS, ANDE, FUE
- Related refining stocks: VLO, HFC, MPC, TSO, WNR, ALJ, PSX, PBF, DK, NTI, ALDW
- Related coal stocks: BTU, WLT, CNX, ACI, ANR, YZC, ARLP, AHGP, NRP, PVR, PVG, PVA, OXF, CLD, WLB, SCOK, KOL
- Related solar stocks: JASO, SPWR, TSL, FSLR, CSIQ, YGE, EMKR, SOL, JKS, CSUN, SCTY, RGSE, SUNE, HSOL, DQ, OTCPK:DSTI, ASTI, OTCQB:SPIR, OTCQB:SOPW
- ETFs: XLE, ERX, VDE, OIH, ERY, DIG, DUG, IYE, FENY, PXJ, RYE, FXN, DDG, FUE, KOL, TAN
Nov. 19, 2014, 2:43 PM
- Up yesterday following the SunEdison/First Wind deal and JA Solar's (JASO +1.2%) Q3 beat and guidance hike, several Chinese solar firms are adding to their gains today, even as the Nasdaq drops 0.5%. JKS +5.7%. TSL +3.9%. YGE +3.3%.
- Roth (Buy, $18 target) is pleased with JA's numbers. "Q4 capacity has been fully booked, and over two thirds of Q1 production has already been allocated ... Trading at just 3.4x our 2015E EBITDA vs. peer average of 8.0x, we continue to believe JASO is under-appreciated and undervalued given the company's strong execution, improving earnings strength, potential for $219mn of 2015 EBITDA, and leading balance sheet (net debt/cap of 24.3%)." It sees a resolution of the U.S./China solar dispute as a potential catalyst.
- This morning, Trina announced a deal to design, build, and run a 10MW Jordanian solar plant. Construction is expected to start in December, and grid connection is expected to happen in Q2 2015.
Nov. 18, 2014, 11:36 AM
- Under pressure for much of last week, solar stocks are rallying (TAN +4.3%) after SunEdison (SUNE +23.5%) and its TerraForm Power (TERP +29.1%) YieldCo announced they're buying leading wind project developer First Wind for up to $2.4B, and JA Solar (JASO +4%) beat Q3 estimates and upped its full-year cell/module shipment guidance to 3.1GW-3.2GW from 2.9GW-3.1GW.
- Gainers: SCTY +3.9%. SOL +4.5%. TSL +3.7%. YGE +2.7%. JKS +3.4%. HSOL +2.8%. ASTI +6%. DQ +3.2%. RGSE +2.6%.
- SunEdison CEO Ahmad Chatila declares the First Wind deal will double his company's addressable market. Cowen thinks SunEdison "can leverage First Wind’s platform to push into international markets for wind given the potential expiration of the production tax credit for U.S. wind projects."
- Along with its results/guidance, JA announced a $90M buyback; it's good for repurchasing 23% of shares at current levels, if fully used. JA's Q3 gross margin was 15%, -20 bps Q/Q but +370 bps Y/Y. Cell/module shipments rose 15.2% Q/Q and 57% Y/Y to 500.2MW.
Nov. 18, 2014, 9:13 AM
Nov. 18, 2014, 7:07 AM| Comment!
JASO vs. ETF Alternatives
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