JA Solar Q4 Shipment Growth Offset by Squeezed Margins

Solar products manufacturer JA Solar (Nasdaq:JASO) recorded shipments of 463MW in the fourth quarter of 2010, an increase of 11% q-o-q and 100% y-o-y, bringing its full year 2010 shipments to 1.46GW, just above guidance, the company announced on February 22. Revenue for the final quarter of the year was RMB 3.86 billion, up 6.6% q-o-q, while gross margin slipped to 19.5% from 22.5% in the prior quarter. Net income, at RMB 783.34 million, brought diluted earnings per share for the quarter to RMB 3.90 ($0.59), representing a sequential increase of 24.3%.

The company expects total cell and module shipments to exceed 2.2GW in 2011, representing an increase of approximately 50% from 2010, with module shipments expected to be 500-600MW.