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JinkoSolar Inks Cooperation Agreement with Quantum Power

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JinkoSolar Holding Co., Ltd. (JKS - Free Report) , a global leader in the solar industry, has announced that its Japanese subsidiary – Jinko Japan – has signed a Cooperation Agreement with Quantum Power GK of Japan. The latter is the Japanese unit of renewable energy provider – Quantam Group.

Details of the Agreement

As per the terms of the contract, Jinko Japan will supply 275 Watt peak (Wp) modules worth 187MW (Megawatt), for three projects of Quantum Power. These projects are located in Ibaraki, Gunma and Mie prefecture of Japan. The company will start shipping modules for these projects in the fourth quarter of 2017.

Among these projects, the last one located in Mie prefecture is the largest integrated renewable project for Quantum. This project will operate a solar power plant, with a total generating capacity of 127,500 MWh (Megawatt-hours) per year and capability to provide clean energy nearly to 90,000 households in the region. Quantum will commence construction of the plant from next month, which is scheduled to be completed by Nov 2018.

Recent Solar Projects

Last month, the company signed a 25-year Power Purchase Agreement (PPA) with the Abu Dhabi Water and Electricity Authority to construct, operate and maintain a solar photovoltaic (PV) plant, with an expected capacity of 1,177 MW. The commercial operation is anticipated to begin in 2019.

It also signed a supply contract with Jing Bei New Energy, in the same month where the company reached an agreement to provide 100MW of its high-efficiency solar panels for solar fishery plants.

More recently, the company announced that they have supplied 214KW (Kilowatts) of high-efficiency PV modules to Morgenster Olive & Wine Estate in South Africa, for empowering sustainable farming. Further, it entered into a strategic collaboration with the largest electrical equipment distributor in Greece, KAFKAS, to serve clients all over Greece by providing reliable applications and solutions for net-metering systems.

Price Movement

In the last three months, JinkoSolar has underperformed the Zacks categorized Solar industry. The company’s shares gained 5.1%, lower than the industry’s increase of 7.6%.

The main reasons behind the underperformance can be attributed to the market dislocation that the solar industry is experiencing as a whole, apart from facing steep competition from both established companies and new entrants in the market.


Stocks to Consider

JinkoSolar currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked players from the Oils-Energy space include Canadian Natural Resources Limited (CNQ - Free Report) , Enbridge Energy, L.P. and SolarEdge Technologies, Inc. (SEDG - Free Report) . All the three companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Canadian Natural Resources reported a positive earnings surprise 30.77% in first-quarter 2017. Its 2017 estimates have risen by 39.36% to $1.31 per share in the last 60 days.

Enbridge Energy reported a positive earnings surprise 128.57% in first-quarter 2017. Its 2017 estimates have risen by 52% to 76 cents per share in the last 60 days.

SolarEdge Technologies reported a positive earnings surprise 39.13% in first-quarter 2017. Its 2017 estimates have risen by 14.43% to $1.11 per share in the last 60 days.

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