Sequentially, revenues rose 21%, while year-over-year growth came in at 39%. Revenues from solar electricity projects rose 26% and gross margins are up nearly five points, compared with the same quarter of last year. Gross margins fell by 1.4 points sequentially. The year-over-year gain in revenues is attributed to JinkoSolar’s expanded geographic reach, additional financial support for its downstream business and a stronger position in emerging markets.
JinkoSolar had a very good fourth quarter to end 2013, but its first quarter was disappointing for investors. The company’s profits were half what analysts expected even though revenues were up. Expectations for second-quarter profits slipped from $0.82 per ADS to $0.76 a week ago when competitor ReneSola Ltd. (NYSE: SOL) offered up a weak third-quarter forecast.
The company’s CEO said:
We maintained our market leading position in China as we continue to seek out opportunities in new emerging markets. We remain confident that the Chinese market will keep growing following the National Energy Administration’s reiteration of strong support for the solar industry and solar power generation, and particularly distributed power generation. The government is also encouraging local governments to play a larger and more proactive role by offering more support and extra subsidies. Our market share in the US continues to grow with shipments for the quarter increasing 61.3% sequentially.
For the third quarter, JinkoSolar expects to ship between 800 and 850 megawatts of solar modules. In the second quarter the company shipped 659.5 megawatts. For the full fiscal year, the company raised its forecast for shipments from a prior range of 2,300 to 2,500 megawatts to a new range of 2,900 to 3,200 megawatts.
JinkoSolar’s shares closed on Friday at $27.82, and traded down about 2% Monday morning, at $26.96 in a 52-week range of $12.69 to $37.98. Thomson Reuters had a consensus analyst price target of around $38.60 before the results were announced.