JinkoSolar is betting on higher demand for its solar modules in 2020 amid coronavirus scare


JinkoSolar, forecasts an up to 35 percent spike in 2020 shipments given the negative impact of coronavirus, and raised its gross margin guidance to 19-21 percent for the year, betting robust demand for its solar products would dial up profits at the world’s top solar company.

This is the main headline from a better-than-expected profit for the fourth quarter. The company said it shipped 4,538 MW of modules in the fourth quarter, up 36.4% QoQ and up 25.4% YoY. Quarterly revenue hit record high of US$1.37bn, up 27.4% QoQ and up 23.4% YoY.

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JinkoSolar’s record high net profit had been widely expected after the solar giant posted its momentum Q3 report suggesting its earnings fundamentally and sustainably strengthened along with its awesome scale.

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For 2019, JinkoSolar said, the company benefited from ramping up wafer capacity, improving cost structure, and stable ASP. It hits a record full-year shipment of 14.3GW, up 25.6% YoY, with revenues of US$4.27bn for 2019, up 18.8% YoY. The gross margin climbs from 14.0% to 18.3%.

What about COVID-19 impact?

The promising outlook from JinkoSolar comes as a strong uptake of high energy density panel and their financial attractions is fueling an overall growth in the global solar PV market although there will be some suspension or postpone of projects caused by virus outbreak in the first half of the year.

The spread of coronavirus globally has in particular pressured the whole solar industry, believing it had a potential demand drop, despite general views on that any disruption will be short-lived and for example commented that both down steam developers can quickly restart projects and pick up the shortfall.

Under this unfavorable scenario, JinkoSolar’s reiteration of shipment guidance unchanged for 2020 is particularly unique and astonishing, 35% growth outstripping an average expected rise in the solar PV market worldwide.

The promising outlook from Jinkosolar – a proxy for global demand given it has 50% backlog – comes as a strong uptake of grid parity is fueling an overall demand in the global solar PV market. Moving into first quarter 2020, despite impact of coronavirus outbreak, it is anticipated that it’s to be supported by the high visibility of orders and continued ramp up of capacity. Jinkosolar reiterated its 2020 shipment guidance of 18-20 GW unchanged, implying there’s no big disruption caused by the epidemic. It is already outstripping a 15% industry growth for this year.

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