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JinkoSolar Shares Near 6-Month High After Turbulent Year

Since its 52-week low of $7.11 per share in October, the stock of the Chinese solar panel maker has more than doubled after a series of advancements.

Anna Vodopyanova
    Jan 28, 2019 3:43 PM  PT
JinkoSolar Shares Near 6-Month High After Turbulent Year

The stock of JinkoSolar Holding Co. Ltd. (NYSE: JKS) climbed an additional 3 percent  Monday to $15.76 per American depositary share after a series of advancements it announced last week.

A "record high efficiency" of 24 percent was achieved by its large-area N-type silicon solar cell, following the testing by the Photovoltaic and Wind Power Systems Quality Test Center at the Chinese Academy of Sciences, JinkoSolar said on Friday.

In addition, the company announced it has supplied 5 megawatts (MW) of solar modules to its partner in Northern Greece, Juwi Hellas S.A., and was expanding on that collaboration.

The reports, coupled with recent strong financial results for the third quarter, allowed the stock of the Shanghai solar module manufacturer to recover to the levels it last held in August.

A turbulent year for Chinese solar panel providers ended on an incline for JinkoSolar. In June, Beijing unexpectedly cut subsidies to the industry and suspended construction of new solar panel farms, which sent a shudder across stocks including Daqo New Energy Corp. (NYSE: DQ), ReneSola Inc. (NYSE: SOL), and JA Solar Holdings Co. Ltd., traded on Wall Street at the time as "JASO." Shares in JinkoSolar, at the time, fell from trading near $18 apiece, on average, to $12.

By reassuring stockholders of its ongoing overseas partnerships, including supplying panels to Sustainable Power Group in Salt Lake City and producing solar panels in Jacksonville, Fla., the company saw its stock bounce up slightly throughout July and the first half of August. However, its disappointing financial results for the second quarter sent it on a long slide that took JKS to its 52-week low of $7.11 per ADS in late October.

Third quarter financials, posted in November, reversed the course. For the three months through September, JinkoSolar's revenue of $974.8 million and income of $27.5 million beat analyst projections and drew interest from investors.

The company saw its shares rise consistently since late November when they were trading at just above $9 apiece. That was further fueled by its December contract with Cambodia's SchneiTec Group to build a 60-MW solar farm and the 90-day truce in the trade war between China and the United States.

The deal between the world's two largest economies froze tariffs on Chinese solar imports at 10 percent, which U.S. President Donald Trump planned to raise to 25 percent starting Jan. 1.

Although JinkoSolar has a way to go to reach $23 per share, the level at which it traded on Wall Street a year ago, the company has been enjoying its first break from turbulence in six months.

For the fourth quarter, JinkoSolar has said it expects solar module shipments ranging from 3.7 to 4 gigawatts (GW).