JA Solar Holdings Co. Ltd. (JASO) has revised its guidance upwards for its first quarter ended Mar 31, 2010. JA Solar now projects first quarter shipments to exceed 265MW, above the high-end of its previous guidance of 215MW to 225MW given on Feb 11, 2010. The updated guidance is based on current customer orders and product deliveries.

JA Solar is witnessing strong demand for its solar products from major solar markets worldwide, including Germany, China, U.S., Italy, South Korea, Spain, France, the Czech Republic and India. The company is also focusing on its emerging markets, such as Australia, Canada and Japan.

JA Solar expects to report its first quarter of fiscal 2010 results in mid-May. The company having witnessed a resurgence in the solar sector reported 66.2% higher revenue year-over-year in the fourth quarter of fiscal 2010.

JA Solar, based in Ningjin of the Hebei province in the People’s Republic of China, manufactures high-performance solar cells. JA Solar’s principal customers are solar module manufacturers, who assemble and integrate their products into modules and systems. The company sells primarily to customers in China, Europe and the U.S.

JA Solar is one of the most cost-efficient solar producers with a geographically diverse customer base, as well as silicon wafer supply agreements in place to cater to its production. Positive factors include ongoing expansion programs, subsidy program in China, improving operating efficiencies, rising margins, and higher conversion efficiency.

However, apprehensions over the tepid module demand in Europe, rising competition, financial stability of its customers and the company’s high R&D expenses may adversely affect performance over the near-term. Thus we maintain our near-term Neutral recommendation on the Zacks #3 Rank stock.
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