JinkoSolar Taps Indian Market - Analyst Blog

Chinese PV module manufacturer JinkoSolar Holding Co., Ltd. JKS signed an agreement with PROINSO for distributing its solar photovoltaic (PV) modules across India. This move has elicited positive investor sentiment pushing JinkoSolar's share price by 6.2% yesterday.

The agreement calls for PROINSO to initiate distribution of JinkoSolar solar PV modules through its 125 qualified installers and exclusive sales network in India. The foray into India will help JinkoSolar to reap the benefits of the growing Asian market especially when solar is gaining so much prominence worldwide. The Asia-Pacific countries of Japan, China and India are expected to be the principal demand drivers of solar modules in the coming years.

The latest agreement comes after last week's announcement of JinkoSolar signing a $39 million loan agreement with China Development Bank. The deal was to finance two PV solar projects in Xinjiang and Gansu Provinces in China.

The year 2013 was remarkable for the solar giants as most of the solar manufacturing companies have returned to profitability after two years of a strenuous downturn. Notably, 2013 also showed astounding scale in the Chinese market, overtaking longtime leader Germany. This year, solar developers around the globe are expected to install record capacity as a booming Chinese market drives growth.

The universal availability of sun rays, decreasing cost of photovoltaic units and a higher conversion rate make solar power technology one of the most popular alternate energy resources.

JinkoSolar swung to profit in the fourth quarter 2013 with adjusted earnings coming in ahead of the Zacks Consensus Estimate. In fact, the company has posted a positive earnings surprise for the past four consecutive quarters, with an average positive surprise of 326.8%. The robust results reflect a diversified customer base and improvement in operational efficiency in a rapidly changing solar power environment.

This Zacks Ranked #2 (Buy) China-based company specializes in low-cost production and supply of solar panels with operations across Europe, North America and Asia.

Other attractive solar PV operators are Zacks Ranked #1 (Strong Buy) Canadian Solar Inc. CSIQ, as well as Zacks Rank #2 (Buy) ReneSola Ltd. SOL and Trina Solar Ltd. TSL.