India's PROINSO signs deal with China's JinkoSolar

PROINSO is to distribute JinkoSolar products throughout India after signing a deal with the China-based manufacturer. The deal will make use of PROINSO’s resources within India, including its Mumbai office, sales network, and 125 installers.

Xiande Li, chairman of JinkoSolar, said, "PROINSO’s unique business model is driving real growth in the Indian distribution market and we’re pleased to partner with them. PROINSO has a solid reputation for providing customers with high-quality, high-efficiency products, making them a perfect match with our corporate culture. This agreement further strengthens our industry leading customer base and reflects our strong position in the Indian market."

The news of the deal preceded JinkoSolar’s stock rising by 6% on Tuesday, reported Bidness Etc, although the site made no direction connection between the two.

Instead, its analyst Michael Kaufman wrote, “Barclays expects JinkoSolar’s earnings per share to compound by 49% by the end of 2016, as its cost efficiency will lead to improved margins. JinkoSolar is diversifying into Japan, the US, and China, which will positively impact average selling prices as well. Barclays expects the solar industry to experience compound annual growth rate of 20% in PV shipments by 2016. The increase in demand is expected on the basis of an increase in demand from China, Japan, the US and other countries where JinkoSolar is expanding operations.”

Kaufman added, “In the last one year, JinkoSolar’s stock price has soared 475%, outperforming the Guggenheim Solar ETF (TAN) by 308 percentage points. Currently, the stock price of the Chinese solar company is down 23.1% from its 52-week high of $38.”