Credit Suisse Sees Solid Execution in Tough Environment for JinkoSolar Holding Co. Ltd.

In a report published Friday, Credit Suisse analyst Patrick Jobin reiterated an Outperform rating and $45.00 price target on

. In the report, Credit Suisse noted, “JinkoSolar reported Q3 non-GAAP earnings of $1.36, above cons/CS estimates of $0.71 mainly due to a tax benefit. Excluding the tax benefit, non-GAAP EPS was $0.71 and EBIT of $39m vs. our estimate of $42m, with the lower performance due to lower module shipments to third parties (658.1 MWs vs. guidance of 650-680 MWs and our est of 665 MWs). Total module shipments (including downstream shipments) of 758 MW were below guidance of 800-850 MW as some volumes were diverted away from projects and pushed to Q4 (projects were 100 MWs vs. guidance of 150-170 MWs). Management reiterated 2014 module shipment guidance of 2.9-3.2 GWs. Gross margins declined to 20.6% from 22.6% last quarter, in-line with our estimate of 20.7%, and prior commentary of 19-21%, but are expected to increase. We increase our 2014 estimate to $3.30 (from $2.42) to reflect the $25m tax benefit in Q3 and adjust to our margin forecasts slightly due to the ASP/tariff environment and reduce our 2015/16 EPS est to $4.01/$6.18 from $4.81/$7.59.” JinkoSolar Holding Co. Ltd. closed on Thursday at $22.86.