Jinko Solar(688223) 华创证券·2024-11-06 11:05Investment Rating - The report maintains a "Recommend" rating for Jinko Solar (688223) with a target price of 11.17 CNY, compared to the current price of 9.28 CNY [1] Core Views - Jinko Solar's gross margin improved significantly quarter-over-quarter, with a Q3 gross margin of 11.82%, up 4.21 percentage points from Q2 [1] - The company's global shipments remained the world's largest, with 73.13GW of photovoltaic products shipped in the first three quarters of 2024, a 31.29% year-over-year increase [1] - N-type module shipments accounted for over 85% of total shipments, with Q3 module shipments reaching 23.85GW [1] - The company is actively expanding its global presence, with plans to issue GDRs to raise up to 4.5 billion CNY for overseas projects, including a 1GW high-efficiency module project in the US [1] Financial Performance - Revenue for Q1-3 2024 was 717.7 billion CNY, a year-over-year decrease of 15.66% [1] - Net profit attributable to shareholders was 12.15 billion CNY, a year-over-year decrease of 80.88% [1] - Operating cash flow turned significantly positive in Q3, reaching 12.55 billion CNY [1] Global Expansion - Jinko Solar is accelerating its transition from global marketing to global manufacturing, with plans to establish a 10GW high-efficiency cell and module project in Saudi Arabia through a joint venture with PIF and VI [1] - The company aims to achieve a full-year module shipment target of 90-100GW for 2024 [1] Market Trends - Following the anti-internal competition call by the industry association in October, market bidding and pricing have shown a clear trend of stabilization and recovery, which is expected to improve industry profitability [1] Valuation - The report forecasts Jinko Solar's net profit attributable to shareholders for 2024-2026 to be 15.05 billion CNY, 44.70 billion CNY, and 57.70 billion CNY, respectively [1] - The current market valuation corresponds to 62x, 21x, and 16x PE for 2024-2026, respectively [1]