JinkoSolar, Daqo Add To Global Solar Gloom
Author: Vaishnavi Bala
JinkoSolar Holding Co and Daqo New Energy Corp followed peers in giving weak shipment outlook, as the solar sector struggles with weak demand and declining selling prices after subsidy cuts in Europe.
JinkoSolar shares, which have shed almost two-thirds of their value this year, were trading down 13 percent at $6.89 on Monday morning on the New York Stock Exchange. Daqo shares fell 4 percent to $2.71.
Companies like Yingli Green Energy and ReneSola Ltd had cut their shipment and profit margin forecasts last week.
Shanghai-based JinkoSolar forecast quarterly module shipments at 210-220 megawatt (MW), down from its previous outlook of 230-250 MW.
JinkoSolar expects revenue at $270-$280 million, compared with its previous forecast of $310-$330 million.
Analysts on average were expecting the company's quarterly revenue at $289 million, according to Thomson Reuters I/B/E/S.
"Jinko's cost structure is among the lowest in the business, but it will struggle to be profitable when you get to net income line," Avian Securities analyst Mark Bachman said.
For the full year, JinkoSolar expects module shipments at 770-800 MW, from its prior outlook of 950-1000 MW.
The company cut its full-year revenue outlook to $1.1-$1.2 billion, from $1.4-$1.5 billion.
Analysts on average were expecting the company's full-year revenue at $1.29 billion.
Daqo New Energy forecast a weak fourth quarter as it expects shipments at its core polysilicon business to be hit by slower demand in the global solar market.
(Additional reporting by Divya Lad; Editing by Don Sebastian)