Investing Chinese Solar - JA Solar Holding

The high flying Chinese Solar stocks used to be traded in the high $40 to $50 range back in 2008 as oil price was in triple digits.  However following the energy bubble burst, many of these Chinese Solar stocks were traded in single digit and out of the investors radar for almost 2 years.  However as crude oil price has gradually climbed back above $90 per barrel and heading to triple digits again, this is probably time to revisit the forgotten Chinese Solar companies.


JA Solar Holding (Nasdaq:JASO) is a six year old company developing solar energy product with solar cell manufacturing facilities throughout China.  Despite drop in annual revenue from $5.5 billion in 2008 to $3.8 billion in 2009, the year 2010 could be a record breaking year with $7.9 billion in revenue already for the first three quarter, about twice as much as the previous year and 40% more than the previous record high in 2008.  Net income for 2010 is also on track to set new record with $971 million so far for the first three quarters compared to $128 million net loss in 2009 and $479 net income in 2008, the previous high when shares were traded as high as $28 per share.


Shares of JA Solar are traded at $7.54 per share with $1.27 billin in market cap and a very attractive P/E ratio of 7.32.  The technical chart shows bullish trend for the long term as the stock is still traded above 200 day moving average.  Although the stock has dropped below 50 day moving average, buyers come back again today as the stock touches 20 day moving average showing support at that level.  If JA Solar was worth $27 in 2008, with stronger financial do expect double digits of share price coming soon this year.