JinkoSolar's loss smaller than expected, company bets on China
(Reuters) - JinkoSolar Holding Co Ltd (JKS.N) reported a smaller-than-expected loss as costs fell and strong sales in China made up for weakness in markets such as Europe, and the company said half of its 2013 revenue would come from the Asian country.
JinkoSolar shares, which have fallen about 28 percent until close on Monday, rose 4 percent to $3.64 in morning trade on the New York Stock Exchange on Tuesday.
The company said it was shifting focus to emerging markets such as China, South Africa and South America as the European Union could follow the United States in imposing tariffs on Chinese solar products.
More than half of JinkoSolar's revenue next year will come from China, a company executive said on a conference call with analysts.
The Asian country in August hiked its 2015 target for solar power capacity by 40 percent to about 21 gigawatt (GW), the third increase in just over a year.
"China sucks up a lot of the inventory out there, but at the same time I don't see it turning the economics of the industry around," Avian Securities analyst Mark Bachman said.
JinkoSolar expects to ship between 250 megawatt (MW) and 300 MW modules in the fourth quarter, compared with 280 MW in the third quarter.
The company posted its fourth straight quarterly net loss of $8.7 million in the third quarter, compared with a profit of $10.7 million a year earlier.
Revenue fell 22 percent to $221.1 million.
However, the loss was 82 percent lower and revenue up 12 percent from the second quarter .
"This is a relative bright spot that you have a company that's starting to show that they are putting up less losses than they did in the quarter before," Bachman said.
Excluding one-time items, third-quarter loss was 20 cents per American depositary share, much lower than the 79 cents loss per ADS analysts expected, according to Thomson Reuters I/B/E/S.
(Reporting By Garima Goel in Bangalore; Editing by Sriraj Kalluvila)
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