JA Solar Holdings Co., Ltd. (ADR) (NASDAQ: JASO) shares jumped more than 6% this morning, moving with the broader solarindustry on positive sentiment of alternative energy sources in light of Japan’s nuclear reactor concerns. The sentiment outweighed a PiperJaffray downgrade of the stock from “neutral” to “overweight” on aforecast of cuts in solar demand for 2011.
JA Solar recently signed a strategic investment agreement with thecity of Hefei, in China’s Anhui province, to set up a newstate-of-the-art photovoltaic production facility for solar cells andphotovoltaic (PV) products. The facility is expected to be located inthe 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 manufacturingcapacity of 3GW of solar cells and PV products. The first phase ofconstruction will begin in 2011, with production expected to commence in 2012.
The company reported strong fourth-quarter results with recordshipments 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 quarterof 2009. The total shipments in the fourth quarter of 2010 were a record 463MW as compared with third quarter shipments of 418MW, representingsequential growth of 11%. Last year same period, the shipments grew 100% from 231MW.
Operating income reported was $89.5 million as compared with $101.4million in the third quarter of 2010 and $37.4 million in the fourthquarter of 2009. Operating margin was 15.3% in the fourth quarter of2010 as compared with 18.5% in the third quarter of 2010 and 15.2% inthe fourth quarter of 2009. The earnings per diluted ADS in the fourthquarter of 2010 were $0.59, an increase of 24% as compared with $0.48 in the third quarter of 2010 and an increase of 366% compared with $0.13in the fourth quarter of 2009.
For the full year, the company reported revenue of $1.8 billion, anincrease of 211% as compared with $572.5 million in full year 2009. Theoperating 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 ascompared with a net loss per diluted ADS of $(0.18) in full year 2009.
The company expects total cell and module shipments to exceed 2.2GWin 2011, representing an increase of approximately 50% compared to 2010. The module shipments are expected to be approximately 500MW to 600MWfor the year. The sales contracts signed for 2011 delivery amount tomore than 2GW, representing approximately 90% of the company’s expectedshipments for 2011.
The company stock has traded in the range of $4.22 and $10.24 duringthe past 52 weeks. The company’s market cap is $1.12 billion.
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