JinkoSolar (NYSE:JKS) Holding Co., Ltd. (NYSE: JKS), known for its solar module manufacturing, has announced a cash dividend of $0.375 per ordinary share, which aggregates to $1.50 per American Depositary Share (ADS).
Shareholders recorded by August 15, 2024, will be eligible for the dividend, with the payment expected around August 30, 2024. The total cash distribution is projected to be around $79 million.
The company's Chairman and CEO, Mr. Xiande Li, expressed that despite the global photovoltaic (PV) market's challenges, the dividend reflects confidence in the company's business outlook and is a gesture of appreciation to the shareholders for their support.
JinkoSolar operates on a global scale, with 14 production facilities and a broad network of subsidiaries and sales teams across various countries. The company's reach extends to key markets in China, the United States, and Europe, among others.
The solar module manufacturer recently completed a repurchase of its American Depositary Shares (ADSs) for approximately $110.7 million, with around $89.3 million remaining for additional buybacks under the extended program. On the earnings front, JinkoSolar reported a 53.3% increase in module shipments in the first quarter of 2024, with net income reaching $84.4 million.
Furthermore, JinkoSolar set a new record for solar cell conversion efficiency, achieving 33.24% with its N-type TOPCon-based perovskite tandem solar cell. The company's 2000-Volt EAGLE® Modules received UL certification, a first in the global market, expected to improve efficiency and cost reductions in utility-scale solar projects.
InvestingPro Insights
In light of JinkoSolar's recent dividend announcement, a dive into the company's financial health and market performance offers additional context. According to InvestingPro data, JinkoSolar has a market capitalization of $1.01 billion and is trading at a low Price / Book multiple of 0.34 as of the last twelve months leading up to Q1 2024. This could indicate that the company's stock is potentially undervalued relative to its book value, which might interest value-oriented investors.
The company's P/E ratio stands at an attractive 2.87, dropping to an even lower 2.45 when adjusted for the last twelve months as of Q1 2024. Typically, a low P/E ratio could suggest that the company's earnings are strong compared to its share price or that the stock is undervalued, which might be a sign for potential investors to consider. Moreover, JinkoSolar has experienced a robust revenue growth of 29.12% over the last twelve months leading up to Q1 2024, highlighting its ability to increase sales and potentially enhance shareholder value.
However, it's important to note that JinkoSolar operates with a significant debt burden, as highlighted by one of the InvestingPro Tips. This could be a factor for investors to weigh against the potential benefits of the low valuation multiples. Additionally, the company's stock has experienced high price volatility and has seen a significant price drop over the last week, which could be a point of concern for risk-averse investors.
For those considering JinkoSolar as an investment, there are 15 additional InvestingPro Tips available at https://www.investing.com/pro/JKS, offering deeper insights into the company's financials and market performance. These tips could provide valuable guidance for making an informed investment decision.
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