JinkoSolar Shares Slide as 20-Day SMA Crossed
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 30 2024
0mins
Should l Buy JKS?
Source: NASDAQ.COM
Shares of JKS.N declined sharply today, crossing below the 20-day simple moving average (SMA) as investors reacted to the company's disappointing Q3 earnings report. JinkoSolar reported a staggering 34.1% year-on-year decline in revenue, totaling 16.2 billion yuan, alongside a significant net loss of 750 million yuan, contrasting sharply with the profit of 22.5 million yuan recorded in the same quarter last year.
The technical breach of the 20-day SMA signals increased bearish momentum, reflecting growing concerns over the company's performance amid industry overcapacity and declining solar module prices. Despite a slight improvement in gross margins to 7.3%, up from 2.9% in Q2, the overall outlook remains cautious.
Looking ahead, JinkoSolar is optimistic about its energy storage segment, projecting it to become a key revenue driver by 2026, with plans to ship 6 GWh of energy storage systems by year-end. However, the current financial struggles overshadow these growth prospects, leaving investors wary.
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Analyst Views on JKS
Wall Street analysts forecast JKS stock price to fall
4 Analyst Rating
0 Buy
2 Hold
2 Sell
Moderate Sell
Current: 26.770
Low
20.00
Averages
23.33
High
25.00
Current: 26.770
Low
20.00
Averages
23.33
High
25.00
About JKS
JinkoSolar Holding Co Ltd is a holding company principally engaged in photovoltaic (PV) industry. The Company builds a vertically integrated solar power product value chain, manufacturing from silicon wafers to solar modules. The Company’s main products comprise silicon wafers, solar cells and solar modules. The Company sells its solar modules under JinkoSolar brand. The Company is also engaged in solar power generation and solar system engineering procurement construction (EPC) services. The Company mainly operates its businesses in the domestic and overseas markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Validation: This agreement not only validates steel frames as a reliable and cost-effective solution but also underscores the importance of industrialization in the U.S. solar industry, promoting the alignment of domestic manufacturing with policy incentives.
- Supply Chain Localization: Nextpower plans to expand its steel frame manufacturing capacity in the Southeastern U.S. to enable direct supply to Jinko Solar's facility in Jacksonville, Florida, simplifying project logistics and reinforcing the domestic supply chain.
- Enhanced Module Durability: Independent testing has demonstrated that steel frames offer significant advantages in torsional stiffness and deflection under mechanical load, which will help improve the long-term reliability of solar modules, especially under extreme weather conditions.
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Scalability: The supply capability is scalable, allowing for an increase up to 3 gigawatts (GW) over a three-year period.
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- PDD Trading Fluctuation: PDD shares fell about 1.5% with a trading volume exceeding 3.6 million shares, reflecting market caution regarding its short-term outlook, which could affect investor sentiment.
- Jinkosolar Underperformance: Jinkosolar traded lower by approximately 7.6% on Wednesday, indicating poor performance within the Invesco FTSE RAFI Emerging Markets ETF, potentially leading investors to reassess its market position.
- Overall ETF Dynamics: Wednesday's ETF trading revealed significant volatility among different components, reflecting varying market perceptions of emerging markets, which may influence investors' asset allocation strategies.
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- Certification Achievement: The company's North American business unit has received IEC 62443-2-4 certification from exida, a globally recognized authority in industrial cybersecurity, which signifies adherence to best practices in secure development lifecycle processes for industrial automation and control systems.
- Trading Volatility: During today's session, JinkoSolar's stock reached a high of $30.55, with a yearly trading range between $13.42 and $31.88, showcasing investor optimism regarding the company's growth potential.
- Market Impact: The IEC 62443-2-4 certification not only enhances JinkoSolar's credibility within the industry but also strengthens its competitive position in the North American market, potentially driving future business growth and bolstering investor confidence.
See More
Jinko Solar Clarifies It Has Not Collaborated with Teams Associated with Elon Musk and Has Not Entered Any Agreements
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No Signed Agreements: The company has confirmed that it has not signed any framework agreement or formal agreement related to such cooperation.
See More
JinkoSolar Shares Surge 13.7% on Musk Visit Report
- Musk Team Visit: JinkoSolar confirmed a visit from a team sent by Elon Musk, indicating potential collaboration opportunities in the U.S. 100 GW solar cell capacity plan, which could drive new market growth for the company.
- Strong Market Reaction: JinkoSolar's stock surged to the daily limit of 20% in Shanghai trading, reflecting strong investor optimism about the company's future prospects, which also boosted shares of related firms like Trina Solar and LONGi Green Energy.
- Industry Protection Policies: Despite tariffs protecting the U.S. market from cheaper solar products from China and Southeast Asia, several U.S. producers maintain links with Chinese manufacturers, potentially providing JinkoSolar with opportunities for expansion in the U.S. market.
- Photovoltaic Industry Outlook: With Musk's plans driving growth in the U.S. solar market, JinkoSolar and its competitors may benefit from changes in this policy environment, positioning themselves more favorably in the global photovoltaic industry.
See More
Nextpower Expands Steel Frame Manufacturing Capacity in Southeast U.S.
- Major Order Signed: Nextpower has entered into a multi-year supply agreement with Jinko Solar to provide over 1 gigawatt of steel frames over three years, with production expected to commence mid-2026, significantly enhancing the competitiveness of U.S.-manufactured solar modules.
- Market Validation: This agreement not only validates steel frames as a reliable and cost-effective solution but also underscores the importance of industrialization in the U.S. solar industry, promoting the alignment of domestic manufacturing with policy incentives.
- Supply Chain Localization: Nextpower plans to expand its steel frame manufacturing capacity in the Southeastern U.S. to enable direct supply to Jinko Solar's facility in Jacksonville, Florida, simplifying project logistics and reinforcing the domestic supply chain.
- Enhanced Module Durability: Independent testing has demonstrated that steel frames offer significant advantages in torsional stiffness and deflection under mechanical load, which will help improve the long-term reliability of solar modules, especially under extreme weather conditions.
See More
NEXTPOWER INC TO PROVIDE MORE THAN 1 GW OF STEEL FRAMES, WITH POTENTIAL EXPANSION TO 3 GW OVER THREE YEARS
Supply of Steel Frames: The company is set to supply over 1 gigawatt (GW) of steel frames, indicating a significant increase in production capacity.
Scalability: The supply capability is scalable, allowing for an increase up to 3 gigawatts (GW) over a three-year period.
See More
ETF Component Trading Dynamics Analysis
- NIO Trading Performance: NIO shares rose approximately 1.2% on Wednesday with over 17.7 million shares traded, indicating investor confidence in its future performance, which may provide support for the stock price.
- PDD Trading Fluctuation: PDD shares fell about 1.5% with a trading volume exceeding 3.6 million shares, reflecting market caution regarding its short-term outlook, which could affect investor sentiment.
- Jinkosolar Underperformance: Jinkosolar traded lower by approximately 7.6% on Wednesday, indicating poor performance within the Invesco FTSE RAFI Emerging Markets ETF, potentially leading investors to reassess its market position.
- Overall ETF Dynamics: Wednesday's ETF trading revealed significant volatility among different components, reflecting varying market perceptions of emerging markets, which may influence investors' asset allocation strategies.
See More
JinkoSolar's North American Unit Achieves Cybersecurity Certification
- Stock Surge: JinkoSolar (JKS) shares are climbing about 10% in Wednesday morning trading, currently priced at $28.18, reflecting a 10.86% increase from the opening price of $28.11, indicating strong market confidence following the certification announcement.
- Certification Achievement: The company's North American business unit has received IEC 62443-2-4 certification from exida, a globally recognized authority in industrial cybersecurity, which signifies adherence to best practices in secure development lifecycle processes for industrial automation and control systems.
- Trading Volatility: During today's session, JinkoSolar's stock reached a high of $30.55, with a yearly trading range between $13.42 and $31.88, showcasing investor optimism regarding the company's growth potential.
- Market Impact: The IEC 62443-2-4 certification not only enhances JinkoSolar's credibility within the industry but also strengthens its competitive position in the North American market, potentially driving future business growth and bolstering investor confidence.
See More
Jinko Solar Clarifies It Has Not Collaborated with Teams Associated with Elon Musk and Has Not Entered Any Agreements
No Cooperation with Teams: Jinko Solar has stated that it has not engaged in any cooperation with teams linked to Elon Musk.
No Signed Agreements: The company has confirmed that it has not signed any framework agreement or formal agreement related to such cooperation.
See More
JinkoSolar Shares Surge 13.7% on Musk Visit Report
- Musk Team Visit: JinkoSolar confirmed a visit from a team sent by Elon Musk, indicating potential collaboration opportunities in the U.S. 100 GW solar cell capacity plan, which could drive new market growth for the company.
- Strong Market Reaction: JinkoSolar's stock surged to the daily limit of 20% in Shanghai trading, reflecting strong investor optimism about the company's future prospects, which also boosted shares of related firms like Trina Solar and LONGi Green Energy.
- Industry Protection Policies: Despite tariffs protecting the U.S. market from cheaper solar products from China and Southeast Asia, several U.S. producers maintain links with Chinese manufacturers, potentially providing JinkoSolar with opportunities for expansion in the U.S. market.
- Photovoltaic Industry Outlook: With Musk's plans driving growth in the U.S. solar market, JinkoSolar and its competitors may benefit from changes in this policy environment, positioning themselves more favorably in the global photovoltaic industry.
See More
