The third Chinese solar player to benefit from the newfound interest in Chinese solar stocks is JinkoSolar Holding Co. Ltd. (NYSE: JKS), although it was not included in the Deutsche Bank upgrades. JinkoSolar issued 4.37 million new American Depositary Shares (ADS) at $16.25 earlier this month, and the stock still gained nearly 25% last week. We noted at the time that a short squeeze could be responsible and the institutional investors were going after some momentum plays.
The Chinese players finally have brought their manufacturing capabilities more into line with market demand and are following a course laid out by U.S. solar makers First Solar Inc. (NASDAQ: FSLR) and SunPower Corp. (NASDAQ: SPWR). That course led to the acquisition a few years ago of solar project developers to soak up the companies’ production and to take advantage of the higher value-added market for system design and installation.
First Solar and SunPower saw their shares improve last week too, but by more modest totals. First Solar stock rose about 5%, while SunPower’s stock was up about 11%.
Because the Chinese government at both the central and local levels have gotten behind solar energy with low-cost loans and feed-in tariffs, the outlook for these solar players has brightened considerably. Credit Suisse even raised its rating on JinkoSolar before the secondary offering was completed, and the stock trades today above the bank’s price target of $22.
Frothy? Maybe, but the impact of the government changes and the move to more emphasis on downstream projects could rescue the Chinese solar sector from the doom it faced just a year ago.
Shares are trading higher again Monday morning, with JinkoSolar up about 2.0% at $22.95, a new 52-week high. The 52-week low is $3.18.
Trina Solar stock trades up 3.6% at $15.36 in a previous 52-week range of $2.04 to $15.24. Yingli’s shares up about 0.2% at $6.88 after posting a new 52-week high of $6.97. The 52-week low is $1.25.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.