JinkoSolar’s Performance Overview
JinkoSolar Holding Co Ltd’s shares are experiencing a downturn following the company’s fourth-quarter FY23 bottom-line results falling short of expectations. Despite revenue growth of 9.4% Y/Y to $4.62 billion, surpassing the consensus estimate of $4.28 billion, the company faced challenges in profitability.
Production Efficiency and Margins
JinkoSolar exhibited a substantial 67.7% Y/Y increase in quarterly shipments, with improvements in the efficiency of N-type TOPCon cells and modules. However, gross margin decreased to 12.5% due to a drop in the average selling price of solar modules, resulting in a 2.8% decline in gross profit.
Operating Performance and Forecast
Operating profit margin shrank to 1.1%, leading to a 42.6% decrease in operating income. Adjusted EPADS missed estimates at $1.21, below the consensus of $2.50. Looking ahead, JinkoSolar anticipates first-quarter module shipments between 18.0 GW-20.0 GW and FY24 module shipments ranging from 100.0 GW to 110.0 GW.
Future Projections and Strategy
By the end of 2024, JinkoSolar aims to enhance mass-produced N-type cell efficiency to 26.5% and increase the proportion of N-type module shipments to around 90%. The company plans to optimize production processes with integrated automation to reduce operational costs and improve efficiency.
Despite anticipating a decline in module prices, JinkoSolar remains optimistic about the global PV market’s growth in 2024. Chairman and CEO Xiande Li expressed confidence in navigating industry fluctuations and foresees a rise in market share. The company expects the economics of the solar energy sector to improve in the short-to-mid-term.
Price Action: JKS shares are currently down 6.62% at $26.45 in premarket trading on Wednesday.
