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JinkoSolar completes $110.7 million ADS buyback

EditorAhmed Abdulazez Abdulkadir
Published 06/27/2024, 01:52 PM
JKS
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SHANGRAO, China - JinkoSolar (NYSE:JKS) Holding Co., Ltd. (NYSE: JKS), a global solar module manufacturer, has reported the repurchase of 4,503,178 of its American Depositary Shares (ADSs) for approximately $110.7 million under its current share repurchase program. The program, originally announced on July 6, 2022, was extended on December 20, 2023, to continue through June 30, 2025.

As of today, the company has roughly $89.3 million remaining for additional buybacks under the extended program. JinkoSolar may carry out future repurchases via open market transactions, privately negotiated transactions, block trades, or other legal methods, depending on market conditions and regulatory requirements.

The repurchase strategy aligns with the applicable rules and regulations, including Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, and is also subject to the company's insider trading policy.

JinkoSolar is known for distributing its solar products and providing solutions and services to a diverse range of markets, including utility-scale, commercial, and residential sectors across various countries and regions. As of March 31, 2024, the company has established 14 production facilities worldwide and operates 26 overseas subsidiaries.

The company's share repurchase initiative is part of its capital allocation strategy and reflects its commitment to delivering value to its shareholders. This announcement is based on a press release statement.

In other recent news, JinkoSolar Holding Co., Ltd., a major solar module manufacturer, announced a series of notable developments. The company reported a 53.3% increase in module shipments in the first quarter of 2024, with net income also experiencing a substantial rise, reaching $84.4 million. JinkoSolar also set a new record for solar cell conversion efficiency, reaching 33.24% with its N-type TOPCon-based perovskite tandem solar cell.

In addition, JinkoSolar's 2000-Volt EAGLE® Modules received UL certification, a first in the global market, which is expected to lead to improved efficiency and cost reductions in utility-scale solar projects. The company also completed the delivery of over 1.1 million Tiger Neo modules to the Witznitz Solar Park in Germany, the largest photovoltaic project in the country, which is expected to generate approximately 0.6 terawatt hours of electricity annually.

In a significant partnership, JinkoSolar is set to provide Athens International Airport with a large-scale battery storage system, SunTera, as part of the airport's goal to reach Net Zero Carbon Emissions by 2025.

InvestingPro Insights

JinkoSolar Holding Co., Ltd. (NYSE: JKS) has shown a proactive approach to shareholder value with its current share repurchase program. With a market capitalization of approximately $1.12 billion, JinkoSolar is trading at a low Price / Book multiple of 0.39 as of the last twelve months ending Q1 2024, suggesting that the company's assets may be undervalued by the market. The company's P/E ratio during this period stands at an attractive 2.77, indicating that its shares could be considered a bargain relative to its earnings.

While the company's revenue grew by 29.12% over the last twelve months as of Q1 2024, the recent quarter saw a slight decline in revenue growth of -1.22%. This mixed performance is reflected in the company's stock price, which has been under pressure, trading near its 52-week low and experiencing a significant drop of 40.84% over the last six months. The InvestingPro Tips highlight that JinkoSolar is a prominent player in the Semiconductors & Semiconductor Equipment industry, but it suffers from weak gross profit margins, which stood at 14.99% in the last twelve months as of Q1 2024.

For investors seeking a deeper analysis, there are additional InvestingPro Tips available, including insights on the company's cash burn and debt burden. These tips can provide a comprehensive understanding of JinkoSolar's financial health and market position. To explore these insights further, visit https://www.investing.com/pro/JKS and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 15 additional InvestingPro Tips listed, there's a wealth of information available to help make informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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