Battery business than the major JA Solar woeful

JA Solar JASolarHoldingsCo., ADR bad doped expected, and no end of consecutive losses for the company how much hope. This is because a large part of the company's sales still come from low-margin small solar cells .

Thursday, JA Solar shares fell as much as 7%. The company expects third-quarter shipments almost flat, unlike other competitors that have higher expectations. The difference with competitors that rely heavily on JA Solar production of solar cells. The company's second-quarter total shipments of 463.7MW, which accounted for approximately 45% of the solar cell.

As a solar panel accessories, solar cells, low prices, the decline in demand, because in order to reduce costs, many solar companies are now using solar cells are homegrown. On the other hand, solar panels china more profitable.

"JA Solar's operations include solar cells outsourcing, in the bottom of the supply chain, and still are not profitable businesses??" S & P Capital Intelligence analyst AngeloZino representation. He gave the stock a "buy" rating.

Number of Chinese PV companies have said that solar panel prices began to stabilize. Over the past two years, the solar panel prices fell more than 60%. Solar panel demand, especially demand from Japan, so that these photovoltaic business prospects even brighter.

JinkoSolar second quarter ended seven consecutive quarters of losses, profitability. Astor solar year is expected to achieve profitability, while Trina said that this year's goal is profit.

Including JA Solar, including the Chinese solar manufacturers who profit from exports to the European market, however, by the European season on solar products imported from China to limit the decline in sales.

Analysts said the company is expected to almost flat shipments was mainly due to the decline in demand in Europe, the European project will be imported from China solar products scale control in 7GW / years.

"The second half we will not see (JA Solar) any significant earnings improvement," Arete Research analyst JimFontanelli said. According to Thomson Reuters predicted that the company at least until the end of 2014 will not be profitable.

JA Solar expects third-quarter shipments of photovoltaic products, 450-470MW. Boosted by demand in Japan, the company's shipments in the second quarter increased 11% to 463.7MW.

Quarter the company's gross margin from 4.8% to 8.1%, but the cost increase of approximately 18%. In contrast JinkoSolar costs fell 22% in the second quarter.

"It seems unlikely that we see (JA Solar) third-quarter gross margin improvement," the analyst JimFontanelli representation.

Reported JA Solar second quarter net loss narrowed to $ 21.6 million, equivalent to 58 cents per American Depositary loss; revenue fell 12% to $ 258.1 million. A year earlier, the company lost $ 72.1 million, loss of $ 1.91 per American Depositary.

JA Solar is also trying to expand the business of construction of solar power plants to compensate for the impact of reduced market share in Europe. Traditionally, Europe is the company's largest market.

Analysts, however, this strategy of the company hold?? Skepticism, because the majority of the company's development projects are located in the prices of solar products in China the world's lowest.