Monday, solar cells maker JA Solar Holdings Co., Ltd. (JASO) reported higher earnings in its first-quarter, as strong demand enhanced top-line growth and shipments. Going forward, the company confirmed its fiscal 2008 revenue and production guidance.
The Hebei, China-based company reported first-quarter net income available to ordinary shareholders of RMB 154.47 million, or US$ 22.03 million, up from RMB 58.34 million, or US$ 8.32 million, a year ago. Net income for the quarter was RMB 154.47 million, an increase from RMB 60.51 million in the year earlier same quarter. Earnings per ADS rose to RMB 0.99, or US$ 0.14, from RMB 0.52, or US $0.07, in the prior-year quarter.
Analysts, on average forecast first-quarter earnings of $0.10 per share in the quarter.
JA Solar Holdings noted that its current quarter results included share-based compensation expense of RMB 52.2 million, foreign exchange losses of RMB 38.6 million and a positive change of RMB 40.7 million in fair value of embedded foreign exchange derivatives, relating to some of its supply agreements. Meanwhile, the prior year results included share-based compensation expenses of RMB 2.0 million and foreign exchange losses of RMB 6.2 million.
Quarterly revenues reached RMB 1.12 billion, or US$ 160.02 million, an increase of 234.8% from RMB 335.15 million, or US$ 47.8 million, a year ago. Wall Street was looking for revenues of $146.60 million.
Income from operations was RMB 163.56 million, or US$23.3 million, an increase of 181.7% over RMB 58.06 million in the previous year.
During the quarter, JA Solar Holdings shipped 51.4 MW of solar cells, in comparison with 14.4 MW last year. Production for the quarter stood at 49.2 MW, a sharp rise from 17.6 MW in the previous year.
Total operating expenses came in at RMB 72.30 million, up from RMB 10.69 million a year earlier.
Looking ahead, JA Solar said it still expects fiscal 2008 revenues in a range of RMB 7.22 billion, or US$ 1.03 billion, to RMB 8.02 billion, US$ 1.14 billion. Fifteen analysts have a consensus revenue estimate of US$984.40 million for the year.
The company also reiterated its annual production output estimate of at least 340 MW and annual production capacity of no less than 500 MW by the end of 2008. JA Solar Holdings noted that the new solar cell manufacturing lines in both Ningjin and Yangzhou will start production on schedule during second half 2008.
Further, the company said it expects capital expenditures to be RMB 966.8 million, or US$137.9 million, primarily for capacity expansion.
Samuel Yang, Chief Executive Officer, commented, "We are experiencing strong market demand this year, and we anticipate continued high customer demand for 2009."
JASO closed Friday's regular trading session at $23.54, up $0.70, on a volume of 6.68 million shares.
For comments and feedback: editorial@rttnews.com