JinkoSolar (NYSE:JKS) reported strong third-quarter results for 2023, showing significant increases in module shipments, gross margin, and net income compared to the previous year. The company also expressed confidence in its ability to maintain healthy and sustainable profitability and increase shareholder value.
Key takeaways from the call:
- Total module shipments increased by 107.9% year-over-year, reaching approximately 21.4 gigawatts.
- Net income increased by 140.7% to $181.4 million, and adjusted net income increased by 215.1% to $184.6 million.
- JinkoSolar expects to exceed its module shipment guidance of 70 to 75 gigawatts for the full year of 2023.
- The company anticipates mass-produced N-type cell efficiency to reach 25.8% by the end of the year.
- Total revenue for the company was $4.36 billion, increasing by 63% YoY.
- Gross margin improved to 19.3%, mainly due to decreased raw material costs.
- Income from operations was about $410 million, improving both sequentially and YoY.
- Cash and cash equivalents were $1.93 billion at the end of Q3, while total debt was $4.23 billion.
JinkoSolar's Q3 results were boosted by increased module shipments and improved gross margin. The company's net income also saw a significant increase, growing by 140.7% to $181.4 million. Adjusted net income saw a larger increase, rising by 215.1% to $184.6 million.
The company expressed optimism about its future prospects, expecting to exceed its module shipment guidance of 70 to 75 gigawatts for the full year of 2023. N-type modules are anticipated to account for approximately 60% of total shipments.
JinkoSolar's total revenue for Q3 was $4.36 billion, remaining flat sequentially but increasing by 63% YoY. The company's gross margin improved to 19.3%, compared to 15.6% in Q2 and 15.7% in Q3 of the previous year, primarily due to decreased raw material costs.
During the earnings call, the company also addressed its financial position. By the end of Q3, JinkoSolar had cash and cash equivalents amounting to $1.93 billion, while its total debt stood at $4.23 billion. The company anticipates a downward trend in module pricing in Q4, which could result in a slight decrease in gross margin due to increased exposure to the Chinese market. However, the company expects improved performance in the US market in 2024.
Despite supply bottlenecks, JinkoSolar remains confident in beating its annual guidance of 75 gigawatts and expects the market to grow by 20-25% in 2024. The company's executives also discussed their plans and offerings for the coming year, expressing confidence in their high-efficiency N-type TOPCon product. They expect to continue building their order book and expanding their market share in 2023.
JinkoSolar's expansion capacity in the US is still in progress, with the company awaiting official detailed guidance before taking further actions. However, they remain optimistic about the US market. The completion of JinkoSolar's 1 gigawatt plant in Jacksonville is expected to be on time.
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