CICC Upgrades JinkoSolar to OUTPERFORM and Raises the Target Price34% to US$30


Jinkosolar shares closed up 11.27% at $28.64, hitting an intraday record of $28.76 a share. The stock had an 8.64% changed hands rate for a single day of trading. The climb comes a day after Jinkosolar jumped 18.67%, which had been its biggest one-day gain in the past one year! Fueled by analysts upgrading its rating from neutral to outperform and raising the target price 34% to $30.

CICC explained that the investor interest in Jinkosolar is largely due to,

  1. Coming from soIPO of Jinko Power Technology in the A-share market to ease risks of loan guarantee.
  2. Visible orders to ensure capacity utilization; benefiting from rising sector demand. JinkoSolar previously disclosed its backlog accounted for 45-50% of module capacity in 2020.
  3. Integrated production and falling exposure to OEM should support gross margin and boost earnings growth.

“There‘s a lot of growth opportunities from that point going forward,” as said by analysts, “despite outbreak of coronavirus, compared to its competitors, JinkoSolar’s much broadly global footprint will ease the pressure of supply.”

The stock’s rally and investors’ optimism are predicated on Jinkosolar achieving 55 GW of sales by 2019, 50% backlog order obtained for 2020, stabilized module ASP and cataclysm of Jinko Power IPO success. Although there’s some concern and worries of impact of coronavirus outbreak, that doesn’t stop investors assuming higher levels of margins, stable ASP, recurring revenue with which to capitalize a 2020 scenario and beyond.

Regarding to the product, Jinkosolar also forecasts a bigger 2020. As impressive as the Model Cheetah has been, which acquiring more than 22 GW sales, the company’s new and more powerful Tiger module is likely to be a second hit for Jinkosolar thanks to its higher energy density at appealing price fueled by optimized process.