JinkoSolar subsidiary forecasts sharp profit decline

Published 17/01/2025, 15:00
JinkoSolar subsidiary forecasts sharp profit decline

SHANGHAI - JinkoSolar (NYSE:JKS) Holding Co., Ltd. (NYSE: JKS), a leading global solar module manufacturer with a market capitalization of $1.25 billion, has reported that its principal operating subsidiary, Jiangxi Jinko, anticipates a significant decline in net income for the year ended December 31, 2024. In a recent press release, Jiangxi Jinko estimated its preliminary unaudited net income attributable to shareholders to be between RMB80 million to RMB120 million, marking a decrease of over 98% compared to the previous year. According to InvestingPro data, this aligns with broader expectations of revenue decline, with analysts forecasting a 17% decrease in revenue for the current year.

Additionally, the company expects a preliminary unaudited net loss, excluding extraordinary gains and losses, to range from RMB750 million to RMB1,050 million. This reflects a further decrease and contrasts sharply with the income reported in the prior year.

JinkoSolar, which owns approximately 58.59% of Jiangxi Jinko, has cautioned investors to exercise prudence when considering these preliminary figures. The company highlighted that these unaudited results are prepared under PRC GAAP, which differs from U.S. GAAP used in JinkoSolar's consolidated financial statements.

The press release also contains forward-looking statements regarding the company's business outlook, which are subject to risks and uncertainties that may cause actual outcomes to differ materially from those projected.

JinkoSolar has established itself as a prominent player in the solar industry with a diverse international customer base and a significant global presence, including over 10 production facilities and more than 20 overseas subsidiaries. Despite current challenges, InvestingPro analysis indicates the stock is trading at attractive valuations with a price-to-book ratio of 0.46 and offers a substantial dividend yield of 12.57%. For deeper insights into JKS's valuation and prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

This announcement comes as the solar industry continues to face various challenges, including fluctuating material costs and competitive market dynamics, reflected in JinkoSolar's modest gross profit margin of 12.79%. The information presented is based on a press release statement from JinkoSolar and market analysis from InvestingPro, which offers additional insights through its extensive collection of financial metrics and expert analysis.

In other recent news, JinkoSolar Holding Co., Ltd., a global solar panel manufacturer, has reported notable developments. The company's third-quarter earnings exceeded expectations, with a net income of $3.2 million and total revenue of approximately $3.5 billion. Despite lower average selling prices for solar modules, shipments reached 25.9 gigawatts, largely to overseas markets, particularly the U.S.

Goldman Sachs has revised its outlook on JinkoSolar, raising the price target to $20.00 from $18.00 while maintaining a 'Sell' rating. This update comes after the third-quarter earnings and revenue surpassed both Goldman Sachs' estimates and consensus figures. However, Goldman Sachs noted the company's anticipation of a potential downturn in the fourth quarter of 2024 due to seasonal trends and political risks.

In addition, JinkoSolar's management has revised its full-year 2024 module shipment guidance downward, expecting shipments to be in the range of 90 to 100 gigawatts. This is a decrease from the previously projected range of 100 to 110 gigawatts. The company also plans to list Global Depositary Receipts (GDR) in Frankfurt by the second quarter of 2024, an action expected to result in a 5% to 6% dilution.

Lastly, JinkoSolar has announced its upcoming Annual General Meeting (AGM) to be held in the near future. Shareholders of record will be invited to attend the AGM, where they will have the opportunity to vote on various company matters. The specific resolutions to be proposed and discussed at the meeting have not been disclosed. These are some of the recent developments for JinkoSolar.

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