Jefferies has updated its financial outlook for Jinko Solar Co., Ltd (688223:CH) (NYSE: JKS), reducing the price target to RMB8.28 from the previous RMB10.68, while reiterating a Buy rating on the stock.
The adjustment follows Jinko Solar's disclosed financial results for the first half of 2024, which showed revenues and net profits at RMB47,251 million and RMB1,200 million, respectively.
The company's second-quarter performance indicated a 21% decrease in revenue and a 99% drop in net profit year-over-year, although there was a sequential quarterly improvement of 4.7% in revenue and a reduction in net profit loss by 98%.
Despite the downturn, Jinko Solar maintained its position as the global leader in module shipments, reaching 43.8 GW in the first half of 2024, with more than 80% being N-TOPCon modules.
The firm also provided guidance for the third quarter of 2024, projecting shipments to be between 23GW and 25GW, and reaffirmed its full-year shipment target of 100GW to 110GW. Additionally, Jinko Solar's management indicated a positive operational cash flow forecast for the full year of 2024, expecting it to exceed RMB5 billion.
The strategic focus on international expansion remains a priority for Jinko Solar, as the management remains steadfast in its pursuit of growth outside its home market.
In other recent news, JinkoSolar (NYSE:JKS) Holding reported significant growth in module shipments for Q2 2024, despite industry-wide challenges. The company's earnings call revealed a steady gross margin of 11.1% and an adjusted net income of $52.1 million. Its total revenue for the quarter was $3.3 billion, a decrease year-over-year due to lower average selling prices.
JinkoSolar also completed the delivery of over 1,000 photovoltaic (PV) modules to Ohana Hope Village in Maui, aiding in the construction of a carbon-neutral housing community for families displaced by a recent fire. This move underscores JinkoSolar's commitment to sustainable energy solutions and community support.
Despite a reported net loss of $13.9 million for the quarter, Goldman Sachs (NYSE:GS) reiterated its Sell rating on JinkoSolar, maintaining a steady price target of $18.00.
JinkoSolar also announced a strategic partnership to produce 10 gigawatts of high-efficiency solar cells and modules in Saudi Arabia, and anticipates a full-year 2024 module shipment forecast between 100 and 110 gigawatts.
InvestingPro Insights
Amidst the financial adjustments and market forecasts, Jinko Solar Co., Ltd (NYSE: JKS) presents a unique profile according to InvestingPro data. With a market capitalization of $1.02 billion and a notably low price-to-earnings (P/E) ratio of 5.07, Jinko Solar stands out as a potentially undervalued player in the solar industry. This is further underscored by a price-to-book ratio of just 0.35, suggesting that the stock is trading below its net asset value. Additionally, investors may find the dividend yield of 15.46% particularly attractive, indicating that the company returns a significant portion of its earnings to shareholders.
Despite the recent decline in revenue and net profit, as highlighted by the company's first-half financials for 2024, Jinko Solar has maintained profitability over the last twelve months. This financial resilience is complemented by a commitment to dividend payouts, which is a noteworthy aspect for income-focused investors. According to InvestingPro Tips, Jinko Solar is also recognized as a prominent player in the Semiconductors & Semiconductor Equipment industry. It's important to note, however, that analysts anticipate a sales decline in the current year and expect net income to drop as well.
For those considering an investment in Jinko Solar, the InvestingPro platform offers additional insights and metrics. Currently, there are 11 more InvestingPro Tips available for Jinko Solar at https://www.investing.com/pro/JKS, providing a comprehensive analysis for potential investors.
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