solarpvinvestor.com/spvi-news/...ar-of-the-pv-industry-is-born
In our opinion, an average analysts' estimate of $2.76 per share does not even consider the whole module business potential.
Excluding non-cash deductions, the company already made $1.36 during Q3. The entry, which affected it, will still play a role in the forthcoming quarter, as the particular bonds are $13M undervalued to their face value. Jinko’s excellent operational performance increased the fair value of its market -traded financial instruments, having non-cash consequences on the income statement.
By just repeating Q3 results in 2014, even on the fully diluted basis, $5.00 is highly probable, as long as $32M retainage for prior module sales is included. With $65M of FiT income from 200MW of solar plants at 60% GM, Jinko can possibly make $39M gross profit, and net profit of 30% will result in $19.5M. Including the additional 300MW of projects planned for 2014, calculating only half-a-year contribution will boost earnings per share by an extra $1.34 per share.
At $6.34 EPS for 2014, Jinko is a new rock star among peers. Its potential lies in the $50 to $63 range per share, using 8 to 10 price-to-earnings ratio. Trina’s market’s valuation seem to consider the manufacturing model only, but if plant sales come on line at the speed described by Wang, modification will be required.