JinkoSolar Shares Soar On South African Contract
NEW YORK (AP) — Shares of JinkoSolar jumped 21 percent Wednesday after the company received a contract from WBHO-Building Energy Ltd. to supply 81 megawatts of solar modules for a power project in South Africa.
THE SPARK: JinkoSolar will deliver a total of 344,540 photovoltaic solar panels for the project, which is expected to generate about 146 gigawatt hour of power equivalent. When completed, the project will include the largest individual photovoltaic solar plants in South Africa, JinkoSolar said.
Shipments starts in first quarter and all photovoltaic panels will ship before the end of the fourth quarter. Financial terms were not disclosed.
THE BIG PICTURE: Like other solar companies, JinkoSolar has wrestled with weak demand, an oversupply of solar technology and tough competition, which has forced them to slash their prices.
Chinese producers are also facing accusations that they are engaged in predatory pricing in the U.S. and Europe, and that they have received unfair help from the Chinese government.
THE SHARES: JinkoSolar Holding Co. rose $1.11, or 21 percent, to $6.40 in afternoon trading, after peaking at $6.70 earlier in the day. Over the past 52 weeks, the company's shares have traded between $2 and $10.20.