Fed Governor Adriana Kugler to resign
On Wednesday, Jefferies analyst Johnson Wan revised the price target for JinkoSolar (NYSE:JKS) Holding Co., Ltd. (NYSE: JKS) stock, reducing it to $62.01 from the previous $65.43. Despite the adjustment, the firm continues to endorse the stock with a Buy rating. Wan’s statement highlighted the company’s financial performance in the fourth quarter of 2024, noting an adjusted net loss of $52.2 million. He pointed out a contraction in gross profit margin (GPM) to 3.6%, which represents a quarter-over-quarter decrease of 12.1% and a year-over-year decline of 8.8%. Currently trading at $20.57, the stock appears undervalued according to InvestingPro analysis, with a market capitalization of $1.1 billion and a price-to-book ratio of just 0.39.
The analyst’s commentary detailed that more than half of JinkoSolar’s module shipments were directed to China, where prices experienced a downturn in the fourth quarter. The management of JinkoSolar has reaffirmed its commitment to its share repurchase program (SRP), which exceeds $200 million. Of this amount, $120 million is already allocated at JKS’s U.S. level. The company plans to initiate the repurchase program following the earnings release for the first quarter of 2025. Despite recent challenges, InvestingPro data shows the company maintains a healthy financial position with a current ratio of 1.22 and offers a significant dividend yield of 14.3%.
Wan also mentioned the company’s future capital expenditure (Capex) strategy. JinkoSolar has signaled that it will significantly reduce its Capex in 2025 compared to previous years. This decision is based on the company’s intention not to expand its production capacity, except for upgrading its TOPCon cell lines. The strategic shift implies that JinkoSolar is focusing on enhancing existing technology rather than increasing its manufacturing footprint.
Investors and market watchers will be keeping an eye on JinkoSolar’s upcoming first-quarter earnings release in 2025 to see how these strategies will impact the company’s financials and operational efficiency. The price target revision by Jefferies reflects the latest financial results and the company’s operational plans as they continue to navigate the competitive solar industry landscape.
In other recent news, JinkoSolar Holding Co. Limited reported a challenging fourth quarter for 2024, with a significant revenue decline and a wider-than-expected earnings loss. The company’s revenue fell to $2.83 billion, marking a 37% decrease year-over-year, while earnings per share (EPS) came in at -$9.22, missing the forecasted -$3.96. The gross margin also dropped sharply to 3.6% from 15.7% in the previous quarter. Despite these setbacks, JinkoSolar maintained its position as the leading global solar module manufacturer, with annual module shipments increasing by 18.3% year-over-year to 92.87 gigawatts.
In terms of financial stability, the company’s cash and cash equivalents increased to RMB 3.8 billion from RMB 3.2 billion in the third quarter. JinkoSolar expects module shipments in 2025 to range between 85-100 gigawatts, with Q1 2025 shipments projected at 16-18 gigawatts. The company is focusing on enhancing its N-type cell efficiency to approximately 27% by the end of 2025. Despite financial challenges, the company remains optimistic about future efficiency improvements and market position.
Analysts have expressed concerns over potential impacts from U.S. import tariffs, but JinkoSolar plans to explore alternative supply chains to mitigate these effects. The company also announced plans to increase shareholder returns through dividends and share repurchases, totaling approximately $200 million. JinkoSolar’s management remains confident in overcoming future challenges, citing their strong market position and technological advancements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.