JinkoSolar's Q1 Miss Offset By Strong Outlook, Shares Rally As Shipments Surge

JinkoSolar Holding Co Ltd JKS shares are trading higher after the Shanghai, China-based company reported first-quarter fiscal 2024 results.

JKS's Q1 revenue decreased 1.2% year-over-year to $3.19 billion, missing the consensus of $3.25 billion.

Quarterly shipments increased 51.2% Y/Y to 21,907 MW (19,993 MW for solar modules and 1,914 MW for cells and wafers).

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Gross margin for the quarter stood at 11.9%, compared to 17.3% in Q1 2023, reflecting decreases in the average selling price of solar modules.

Loss from operations was RMB339.6 million ($47.0 million), compared to RMB1.21 billion income from operations in the first quarter of 2023. 

JinkoSolar Adjusted net income was RMB 470.3 million ($65.1 million), compared to RMB 836.4 million a year ago. Earnings per ADS was RMB 11.28 ($1.56) basic and RMB 5.36 ($0.74) diluted.

As of March 31, JinkoSolar held $2.44 billion in cash, equivalents, and inventories were $2.79 billion.

Leveraging N-type technology, a broad operation network, and advanced capacity, module shipments grew 53.3% year-over-year to 19.99 GW.

N-type modules comprised nearly 80% of these shipments, with about 50% going to North America. Order book visibility for 2024 currently exceeds 70%. 

The company stated that the newly added installations in China reached 45.7 GW (+35.9% Y/Y). Module exports totaled 61.7 GW (+20% Y/Y). 

JKS is optimistic about increasing global demand for N-type technology and plans to maintain leadership by improving technology, production capabilities, and cost efficiency. By the end of 2024, they aim for N-type cell efficiency at 26.5% and expect these modules to constitute nearly 90% of their shipments due to high demand. 

The company is limiting capacity expansion in 2024, focusing on advanced N-type capacity, including 28 GW at their Shanxi, China plant. 

Outlook: The Shanghai, China-based company expects its second-quarter module shipments to be around 24.0 GW and 26.0 GW.

The company expects FY24 module shipments of 100.0 GW to 110.0 GW. JinkoSolar expects its annual production capacity for mono wafers, solar cells, and solar modules to reach 120.0 GW, 110.0 GW, and 130.0 GW by the end of 2024.

Price Action: JKS shares are trading higher by 3.56% at $25.00 premarket at the last check Monday.

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