31 replies to this topic

[odyd]

moved Josh's and Eys' discussion on JKS here

[luckygoose]

http://www.4-traders...rovin-18279473/

this will help as a confirmation jks is doing okay. 2new projects 39mw connected and going strong.

[sunnysky]

Thanks lucky. This is great news.

[explo]

http://www.4-traders...rovin-18279473/

this will help as a confirmation jks is doing okay. 2new projects 39mw connected and going strong.

 

Great news. They keep connecting projects.

[eysteinh]

More to come I am sure

[Jetmoney]

Great news. They keep connecting projects.

So, now they have 252MW of power project connecting to the grid.  How much per MW do they get in profit per year?  If they just make 10cents profit (just a postulate here) per MW per year, that means they would collect more than $25 million a year which translates to almost $1 per share just from this.

[joshchang]

i like the additional fit from local govenment which increase the irr and compensate lower raidiation hours in those areas. one thing to note is that these areas are less likely to have connection and electricity abandoning problem being dense populated.

[sunnysky]

So, now they have 252MW of power project connecting to the grid.  How much per MW do they get in profit per year?  If they just make 10cents profit (just a postulate here) per MW per year, that means they would collect more than $25 million a year which translates to almost $1 per share just from this.

 

My estimate was they'd make $1 from FiT per ADR if the 2014 target is met, taking into account partial FiT income from the new capacity added in the year, which steps up as the plants get built and connected.

[Jetmoney]

My estimate was they'd make $1 from FiT per ADR if the 2014 target is met, taking into account partial FiT income from the new capacity added in the year, which steps up as the plants get built and connected.

Thank you.  If I understand this correctly, that means JKS would continue to collect $1 per ADS per year for the next 20 years.  If they continue to connect more MW to grid, this figure will continue to grow.  I think this alone should worth something.

[explo]

So, now they have 252MW of power project connecting to the grid.  How much per MW do they get in profit per year?  If they just make 10cents profit (just a postulate here) per MW per year, that means they would collect more than $25 million a year which translates to almost $1 per share just from this.

 

 

It depends a bit on the project (FiT, development cost, debt used), but for a typical case I assume around 0.07 $/W annual net profit boost from the power sales. So 252 MW adds around $0.50 to annual EPS. By end of year with 600 MW connected the annual EPS boost level is $1.30. The nice thing is that this EPS effect will last for 20 years and for every new project connected that 20 year lasting annual EPS boost effect grows.

[Jetmoney]

It depends a bit on the project (FiT, development cost, debt used), but for a typical case I assume around 0.07 $/W annual net profit boost from the power sales. So 252 MW adds around $0.50 to annual EPS. By end of year with 600 MW connected the annual EPS boost level is $1.30. The nice thing is that this EPS effect will last for 20 years and for every new project connected that 20 year lasting annual EPS boost effect grows.

Thank you Explo. I think that was why some analyst said that JKS power project alone should worth about $26 per ADS (P/E or 20?).  That means we get the rest of JKS business for free?  I really like JKS here because of its money making machine.  Besides, buying JKS now will get you $10 discount from the last offerings of $35 per ADS to the privilege few a few months ago.

[Makan]

Capitalized with 7% I value every watt installed at 0.95-1$ value for JKS. So 600 MW would be worth 600 mln.

Right Now market cap is around 800 mln. So probably market assumes they stop eoy. But well, they happen to be the low cost producer also.