Trading Idea: Jinko Solar


Welcome Back everyone :)

I want to start the new month with a trading Idea. The stock I want to point out today is Jinko Solar. As the name suggests it's a stock that operates in the solar sector and is the biggest producer of Solar products in the world.

 

Disclaimer:

Nothing here is financial advise and everything you read is for educational and entertaining only! Please do you own research about everything I say and never invest money you can not afford to loose!

 

Jinko solar was found in China in 2006 and went public on 2010. The stock saw some parabolic jumps in falls since that and giving money into a volatile company is always more risky then dividend aristocrats. This should be considered, as well as the fact that a higher risk stock should always only be a addiction to some very low risk stocks in your portfolio. 

 

After the bankruptcy of many European producers of solar energy during the late 2010s, Jinko had been able to position themselves into the hard competioned solar market during the years between 2010 and 15 and became the largest producer of consumer cells during the last year's. But Jinko doesn't only sell their products to consumery. Their clientlist also include institutional investors, as well as contracts from several state projects. 

 

Jinko produces some of the most efficient cells in the market and is opting to introduce new cells with a efficiency of 28 Percent in the coming years. Combined with their cost efficient production and the stable balance sheet, Jinko could become a future chine value stock. 

Their earnings are earning and beating expectations for a few quarters in a row now and the outlook is looking pretty good as well.

The P/E Ratio is at 10 right now at a price of 33Dollars. If next year's forecasted  earnings are really happening, this could go down to 4 or 5 which makes it a pretty cheap possibility at the moment of writing that article. 

 

 

As Solar energy will be a key energy source for the transformation to a complete CO2 free society its pretty obvious that Solar companys could be the biggest winner of this trend during the next decades. Especially the lower price and the higher earnings compared to wind energy makes solar energy company's are thing you should take a look at.

 

There are some other nice solar company's out there that are competing with Jinko, like Solaredge, First Solar, Canadian Solar ......

So if you don't like this explicit stock, you can maybe at least take a look at the Solar sector as a whole.

I will cover this topic in a future article as well.

 

 

As always: What do you think about the Solar sector? Which sectors are you investing in and why? And what is your favorite stock at the moment?

 

Have a good day, volks :)

Cheers

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Domifidsch
Domifidsch

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