Bear of the Day: JinkoSolar (JKS)

JinkoSolar Company Overview

Zacks Rank #5 stock JinkoSolar (JKS) is a Chinese manufacturer of photovoltaic (PV) solar modules and energy systems. JinkoSolar builds a vertically integrated solar product through its supply chain, which is recovered from silicon materials or solar modules. The company’s primary products are silicon wafers, solar cells, and solar modules, which are all PV. JKS has residential, commercial, and utility scale projects globally and is focused on sustainability and clean energy innovation.

Tariff Wars Lead to Uncertainty for Chinese Solar Industry

With the intensifying trade war between the United States and China, uncertainty is abound on Wall Street. The Trump administration’s attempt to negotiate bilateral trade deals globally has sparked heated rhetoric, tit-for-tat threats and tariffs, and uncertainty on Wall Street. Though it appears that the Trump team has made progress with some countries, China and the United States remain miles apart. For instance, over the past few days, the Trump team has claimed that talks are being held between the two adversaries, while the Chinese government has denied such claims. Meanwhile, Trump officials such as Treasury Scott Bessent say that a deal with China could take as long as two or three years.

For years, President Trump has alleged that China is “dumping cheap product” on the United States and other countries. It’s not just right-leaning politicians saying this, either. In 2024, then-Treasury Secretary Jant Yellen warned that China is treating the global economy as a dumping ground for cheap, clean energy products. In other words, the Chinese government subsidizes clean energy companies so that their prices are artificially low, putting local companies out of business. When those companies exit the market, the Chinese companies hike prices. In response to this threat, Trump has set solar tariffs as high as 3,521% in Asia! While this is likely a positive for US solar companies like First Solar (FSLR) and Tesla (TSLA), it essentially means that the US market is non-existent to companies like JinkoSolar.

JKS Earnings Are Likely to Slide

Wall Street analysts are incredibly bearish on Jinko’s future and expect EPS to crater 453.85% this year!

JKS is a Laggard

JKS shares exhibit relative price weakness and are down 28.2% year-to-date, dramatically underperforming the S&P 500 Index. Meanwhile, shares are stuck below the key moving averages and are carving out a bear flag structure.

Bottom Line

JinkoSolar, a major Chinese manufacturer of solar PV products, faces several bearish headwinds due to trade tensions between the US and China.

 

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This article originally published on Zacks Investment Research (zacks.com).

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