JA Solar Holdings Co., Ltd. (ADR) (NASDAQ: JASO) shares jumped more than 6% this morning, moving with the broader solar industry on positive sentiment of alternative energy sources in light of Japan’s nuclear reactor concerns. The sentiment outweighed a Piper Jaffray downgrade of the stock? from “neutral” to “overweight” on a forecast of cuts in solar demand for 2011.
JA Solar recently signed a strategic investment agreement with the city of Hefei, in China’s Anhui province, to set up a new state-of-the-art photovoltaic production facility for solar cells and photovoltaic (PV) products. The facility is expected to be located in the Hefei High-Tech Industrial Development Zone in the City of Hefei. The construction is expected to take place over a multi-year period and, when fully completed, the facility is expected to have a manufacturing capacity of 3GW of solar cells and PV products. The first phase of construction will begin in 2011, with production expected to commence in 2012.
The company reported strong fourth-quarter results with record shipments of 463MW, an increase of 11% sequentially and 100% year-over-year.
The company reported fourth-quarter revenues of $584.3 million, an increase of 6.6% as compared to $548.3 million reported in the third quarter of 2010 and an increase of 137% from $246.5 million reported in the fourth quarter of 2009. The total shipments in the fourth quarter of 2010 were a record 463MW as compared with third quarter shipments of 418MW, representing sequential growth of 11%. Last year same period, the shipments grew 100% from 231MW.
Operating income reported was $89.5 million as compared with $101.4 million in the third quarter of 2010 and $37.4 million in the fourth quarter of 2009. Operating margin was 15.3% in the fourth quarter of 2010 as compared with 18.5% in the third quarter of 2010 and 15.2% in the fourth quarter of 2009. The earnings per diluted ADS in the fourth quarter of 2010 were $0.59, an increas! e of 24% as compared with $0.48 in the third quarter of 2010 and an increase of 366% compared with $0.13 in the fourth quarter of 2009.
For the full year, the company reported revenue of $1.8 billion, an increase of 211% as compared with $572.5 million in full year 2009. The operating income for full year was $299.6 million as compared with $14.2 million in full year 2009. The net income per diluted ADS was $1.61 as compared with a net loss per diluted ADS of $(0.18) in full year 2009.
The company expects total cell and module shipments to exceed 2.2GW in 2011, representing an increase of approximately 50% compared to 2010. The module shipments are expected to be approximately 500MW to 600MW for the year. The sales contracts signed for 2011 delivery amount to more than 2GW, representing approximately 90% of the company’s expected shipments for 2011.
The company stock has traded in the range of $4.22 and $10.24 during the past 52 weeks. The company's market cap is $1.12 billion.
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