JKS Continues To Focus On China’s Solar Market With 50 MW Module Deal
With shares of JinkoSolar (JKS:NYSE) down over 60 percent since February 10th (in comparison, shares of First Solar (FSLR: NSADAQ) are down 46.5 during the same period while shares of Suntech Power (STP: NYSE) are down over 80 percent), the company tried to boost its share price by announcing it will be supplying 50 megawatts (MW) of solar modules to China Three Gorges New Energy Corp (CTGNE).
The specifics of the deal were not revealed and no word on when the modules will be shipped.
While 50 MW is a certainly a large deal, investors might be troubled by the fact that four out of the last six announced deals from JinkoSolar have been to China-based projects (40 MW to China Power International, 30 MW to Guangdong China Nuclear, and 50 MW to GSHHSD). Similar to today’s announcement, none of the deals offered specifics on delivery of the modules.
To JinkoSolar’s credit, today’s deal is significant as CTGNE is a wholly-owned subsidiary of CTGC, one of China’s largest state-owned power corporations. CTGC has the potential to be a great business partner for the struggling solar manufacturer.
Investors were cautiously optimistic on today’s news as shares of JinkoSolar were up 0.85 percent in afternoon trading.