Jinko Solar(SH:688223) Xin Lang Cai Jing·2025-10-03 12:52Core Viewpoint - JinkoSolar, the world's largest photovoltaic module supplier, indicated that due to a policy window period demand surge in the first half of the year, the overall installation expectations for the second half of the year in China are significantly lower than in the first half, with uncertainties in terminal profitability leading to project delays [1] Group 1: Market Trends - The domestic photovoltaic installation surged in April and May due to a rush for installation, with May reaching a record high of 92.92 GW, a year-on-year increase of 388.03%. However, subsequent months saw a sharp decline in new installations, with June at 14.36 GW (down 38.45% year-on-year and 84.55% month-on-month), July at approximately 11 GW (down 47.7% year-on-year), and August at 7.36 GW (down 55.29% year-on-year and 33.33% month-on-month) [1] - The recent results of two provinces' renewable energy pricing auctions have elicited mixed reactions within the photovoltaic industry. Shandong province's auction revealed a mechanism price for photovoltaic projects at 0.225 yuan/kWh, which is 43% lower than the coal benchmark price, while Yunnan province's price was 0.33 yuan/kWh, 46.7% higher than Shandong's, providing a boost to the industry [3] Group 2: Investment Insights - The chairman of Chint New Energy emphasized that the predictability of returns is more critical for investors than fluctuations in the supply chain prices, indicating a need for clearer electricity pricing policies to guide investment decisions [2] - JinkoSolar's investor communications highlighted that while domestic year-end demand may recover, overseas markets in India, the Middle East, and Africa remain robust, with stable but slowing demand in Europe. The company maintains its production targets for the fourth quarter and its annual shipment goals [3] Group 3: Industry Challenges and Opportunities - JinkoSolar noted that the upstream capacity consolidation plan, if successfully implemented, could help balance supply and demand for silicon materials, leading to a gradual return of prices to reasonable levels. The details of this plan are still being finalized and depend on policy enforcement and market acceptance [4] - The company reported that its photovoltaic module shipments remained the highest in the industry in the first half of the year, despite facing losses. The development of energy storage, particularly through solar-storage integration, is seen as crucial for overcoming current challenges and creating a second growth curve [4] - The cancellation of mandatory energy storage in the domestic market is expected to widen the arbitrage space, and independent storage projects are projected to yield attractive returns. The integration of solar and storage solutions is becoming mainstream, particularly in markets like the U.S. and Europe [5]