Jinko's Q3 Loss Narrower Than Feared, but Revenue Misses by $390M
JKS is trading near its 52-week low of $7.825 (6.5% above the low).
Summary
Jinko posted a Q3 adjusted loss of 32 cents per share, far better than the 97-cent loss five analysts expected, and the reported net loss of $25.36 million (48 cents per share) is a big step down from the prior quarter's RMB697.3 million loss. The problem is the top line: revenue fell 10.5% to $2.03 billion against a $2.42 billion consensus, so the improvement came from cost and margin recovery rather than demand. Gross margin recovered to 12.3% per the 6-K filed today, following the 4.2% trough in Q2. This lands after the October 16th guidance for a nine-month loss of RMB3.0-3.6 billion, and the quarter's result puts the company at the better end of that range. The stock is down 13.5% this quarter and 68.1% this year, and the average analyst rating sits at hold with a $16 median target. The revenue shortfall is the number that matters — margin repair on shrinking sales is not a recovery story yet.
At the time of this announcement, JKS was trading at $8.33 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $413.6M. The 52-week trading range was $7.83 to $31.88. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.