JA Solar Gains Strength in Q3 – Analyst Blog

JA Solar Holdings Co. Ltd. (JASO) announced adjusted earnings per American Depositary Share (EPADS) of RMB 0.66 (10 cents) in its fiscal third quarter, which exceeded the Zacks Consensus Estimate by 7 cents. The performance improvement came from higher shipments along with growing margins.

 

In the reported quarter, revenues rose 119.6% to RMB 1.3 billion ($193.3 million), as compared to RMB 600.7 million ($88.0 million) reported in the previous quarter. However, revenues fell 37.8% when compared to year-ago quarterly revenue of RMB 2.1 billion ($310.7 million).

 

JA Solar’s shipments were a company record of 177MW in the quarter. In the prior quarter, shipments were only 77MW, representing a sequential growth of 129.9%. In the year-ago quarter also, shipments were only 99MW, representing shipment growth of 78.8%.

 

JA Solar’s gross profit in the reported quarter rose to RMB 220.5 million ($32.3 million), or 16.7%, compared with RMB 68.3 million ($10.0 million) or 11.4% in the second quarter of 2009 and RMB 458.1 million ($67.1 million) or 21.6% in the third quarter of 2008.

 

JA Solar at the end of the reported quarter had cash and cash equivalents of RMB 1.7 billion ($256.1 million), compared with RMB 2.2 billion ($329.0 million) after the end of the second quarter of fiscal 2009. Operating cash flow for the latest quarter was RMB 288.6 million ($42.3 million), compared with RMB 194.7 million ($28.5 million) in the second quarter of 2009. At the end of the reported quarter, the company had convertible bonds outstanding of RMB 1.7 billion ($253.5 million) and total long-term bank loans outstanding of RMB 680 million ($99.6 million).

 

Outlook



JA Solar expects fourth quarter shipments to be in the range of 170MW – 200MW, and full year 2009 shipments to be in the range of 448MW – 478MW.