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Sun shines on JinkoSolar, but clouds loom on the horizon

The company’s profit more than doubled in the third quarter as booming demand and plunging polysilicon costs more than offset falling prices for its solar modules.

Solar module prices may be plunging, but prices for the polysilicon that’s their main ingredient are falling even faster. That discrepancy is not only fueling an unexpected global boom in demand for solar modules, but is also fattening both the top and bottom lines for their manufacturers.

Both trends were shining prominently in the latest results from JinkoSolar Holding Co. Ltd. (JKS.US; 688223), one of the world’s top solar panel makers, which reported its shipments doubled year-on-year in the third quarter. The surging demand helped the company not only to beat its own earlier revenue guidance for the quarter, but also prompted it to predict it would beat its own full-year guidance that it already revised upward just three months earlier.

https://www.prnewswire.com/news-releases/jinkosolar-signs-3-8-gw-supply-agreement-with-acwa-power-for-high-efficient-n-type-modules-301967126.html

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