On Mar 15, China-based solar cell and module producer, JA Solar Holdings Co., Ltd. JASO announced that it will provide solar modules for the second phase of a Guatemala solar farm. The solar modules will have a capacity of 35.1 megawatt (“MW”).
The Guatemala solar farm ranks as the largest in Central America and the second largest in the Latin American region. The company had earlier shipped 59.7 MW of solar modules for the first phase of the same project in 2014.
Latest Earnings Recap
JA Solar posted strong fourth-quarter 2014 results, as its shift in focus to solar modules instead of cells paid off. The company recorded adjusted earnings of 30 cents per American Depositary Share (ADS), beating the Zacks Consensus Estimate of 27 cents by 11.1%. In the year-ago period, the company had reported earnings of 16 cents per ADS.
JA Solar’s revenues in the reported quarter were $576.4 million, outpacing the Zacks Consensus Estimate of $525 million by 9.8%. Revenues also increased 65.3% year over year.
What Lies Ahead?
JA Solar has a strong order book and wins contracts from both domestic as well as international clients at regular intervals. Total shipments in the fourth quarter surged 43.2% year over year to 952.7 MW.
JA Solar expects to ship 680–750 MW of cells and modules in the first quarter of 2015. Full-year 2015 shipments are projected in the range of 3.6 GW to 4 GW. The company anticipates robust demand in 2015 and plans to expand its cell and module capacity by 20%.
The solar industry has increasingly gained prominence as regulators the world over have come down heavily on the usage of fossil fuels, particularly coal, for the generation of power. Energy production through solar power is the hottest talk worldwide.
In a joint pact with the U.S., China is aiming to increase the share of renewable energy in power generation to 20% by 2030, with a target of achieving 100 GW PV of power by 2020. Hence, JA Solar along with other solar module manufacturers like JinkoSolar Holding Co., Ltd. JKS, Yingli Green Energy Holding Co. Ltd. YGE and Trina Solar Ltd. TSL will increasingly gain from the ongoing regulations and policies to promote clean energy production in the long run.
Zacks Rank
JA Solar Holdings currently sports a Zacks Rank #1 (Strong Buy).
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