The Solar Stock Battle: Is Daqo or JinkoSolar Your Next Big Win?

Industry Overview - The U.S. added a record-breaking 32.4 gigawatts of solar electric generating capacity in 2023, driven by strong customer demand, supportive government policies, and rapid advances in solar technology [1] - A long-term shift toward decarbonization through green energy sources is underway and expected to continue for years [1] Company Performance: Daqo New Energy - Daqo New Energy reported a net loss attributable to shareholders of just under $120 million, significantly worse than analysts' expectations, due to an inventory impairment expense of $108 million [3][4] - The company faced a decline in sales volume of more than 20% year-over-year, with an average polysilicon selling price of $5.12 per kilogram, down over $2.50 from the previous year [4] - Daqo has failed to beat consensus earnings per share estimates for the last year, indicating persistent bottom-line struggles [4] Company Performance: JinkoSolar - JinkoSolar reported a net loss of almost $14 million for the second quarter, with revenue growth up 4.4% sequentially but down nearly 22% year-over-year [6][7] - Despite the losses, JinkoSolar experienced a year-over-year module shipments growth of over 34%, becoming the first solar module maker to deliver a total of 260 GW solar modules [7] - The company also saw substantial growth of around 20% year-over-year in total solar module exports, suggesting a potential for quicker recovery compared to competitors like Daqo [7] Comparative Analysis - First Solar Inc. remains the largest and most profitable company in the solar space, maintaining profitability while smaller competitors struggle with excess inventory and low prices [8] - JinkoSolar's rapid growth in demand for its products makes it a company to watch, while Daqo's position could improve if there is a broad increase in prices across the industry [8]