JinkoSolar Holding Co., Ltd.
JKS
recently revealed that its subsidiary, Jinko Solar Co. (Jiangxi Jinko), Ltd, inked an agreement with three counterparties in China for the development of the monocrystalline silicon pull rod project. This should strengthen JinkoSolar’s in-house production capabilities of monocrystalline silicon pull rods amid the rising solar demand globally.
Details of the Agreement
Jiangxi Jinko clinched a project investment cooperation framework agreement with the Qinghai Provincial Department of Industry and Information Technology, the Xining Municipal Government, and the Xining Economic and Technological Development Zone Management Committee (the Counterparties) for the development of the aforementioned project.
Jiangxi Jinko will construct silicon pull rod production lines in Xining city, which boast a total annual production capacity of 30 gigawatts.
Jiangxi Jinko intends to develop the production lines in two phases, expecting to commence the construction of the first phase in April 2022 and the second phase during the 2023-2024 period.
What’s Favoring JinkoSolar?
Due to its usage in solar panels, the monocrystalline silicon pull rod enjoys huge demand in the solar market. Thus, the aforementioned agreement will not only enhance the production efficiency of JinkoSolar but also provide an edge to the company in the global solar market and further stimulate its growth as nations are rapidly transitioning to renewable sources of energy.
In this context, it is imperative to mention that the global solar energy market is projected to witness a CAGR of 13.8% over the 2022-2027 period, per the report from Mordor Intelligence.
Considering bright growth prospects in the global solar market, JKS’ monocrystalline silicon rod production facility enhances the company’s prospects to capitalize on the increased demand and growth trend. This, in turn, is likely to boost its top line over the long haul.
Opportunities for Peers
The heightening demand for renewable sources of energy, with an aim to attain clean energy goals, has spurred demand for solar-based energy, thereby boosting the growth of the market.
Major industry players poised to gain from the surging solar demand include
First Solar
FSLR
,
Canadian Solar
CSIQ
and
Enphase Energy
ENPH
.
First Solar provides photovoltaic (PV) solar energy solutions and designs, manufactures and sells cadmium telluride solar modules that convert sunlight into electricity. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies and other system owners.
First Solar boasts a long-term earnings growth rate of 9.5%. FSLR shares have returned 14.6% to its investors in the past month.
Canadian Solar, together with its subsidiaries, designs, develops, manufactures and sells solar ingots, wafers, cells, modules and other solar power products.
The Zacks Consensus Estimate for Canadian Solar’s 2022 earnings indicates solid growth of 206.2% from the prior-year reported figure. Shares of CSIQ have rallied 10.3% in the past six months.
Enphase Energy, together with its subsidiaries, designs, develops, manufactures and sells home energy solutions for the solar PV industry in the United States and worldwide.
The Zacks Consensus Estimate for Enphase Energy’s 2022 earnings has been revised upward by 2.9% in the past 60 days. Shares of ENPH have rallied 27.9% in the past year.
Price Movement
In the past year, shares of JinkoSolar have surged 37.4% against the
industry
’s decline of 14.7%.
Image Source: Zacks Investment Research
Zacks Rank
JinkoSolar currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Investor Alert: Legal Marijuana Looking for big gains?
Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0%.
You’re invited to immediately check out Zacks’
Marijuana Moneymakers: An Investor’s Guide
. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Today, Download Marijuana Moneymakers FREE >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
