Why Shanghai-Based Photovoltaic Company JinkoSolar's Shares Are Skyrocketing Today

JinkoSolar Holding Co Ltd JKS reported third-quarter FY23 revenue growth of 63.1% year-on-year to $4.36 billion, beating the consensus of $4.19 billion.

The company stated that the revenue increase is attributable to the increases in the shipment of solar modules due to the increasing demand in the global market.

Quarterly shipments increased 21.4% sequentially and 108.2% YoY, at 22,597 MW (21,384 MW for solar modules and 1,213 MW for cells and wafers).

Gross margin expanded to 19.3%, from 15.7% in 3Q22, with gross profit of $840.6 million, up 99.7% Y/Y.

The operating margin was 9.4%, compared to 0.3% a year ago. The operating income stood at $409.8 million for the quarter.

Adjusted EPADS of $3.31 beat the consensus of $1.44.

As of September 30, JinkoSolar held $1.93 billion in cash and equivalents. Inventories were RMB19.15 billion ($2.63 billion), compared with RMB20.09 billion as of June 30, 2023.

By the end of Q3, the mass production efficiency for JKS’s N-type TOPCon cells reached 25.6%, and N-type modules power output was 25-30wp higher than that of similar P-type modules.

Outlook: The Shanghai, China-based company expects its fourth-quarter module shipments to be around 23 GW.

The company said it is confident that its full-year module shipments will exceed the guidance of 70 to 75 GW, with N-type modules accounting for approximately 60%.

JinkoSolar expects its annual production capacity for mono wafers, solar cells, and solar modules to reach 85.0 GW, 90.0 GW and 110.0 GW, respectively, by the end of 2023, with N-type capacity accounting for over 75%.

Price Action: JKS shares are trading higher by 17.11% at $30.32 on the last check Monday.