JA Solar Holdings Earnings Call INSIGHTS: ASP Changes, Shipment Expectations

On Wednesday, JA Solar Holdings Co., ADR ADR (NASDAQ:JASO) reported its second quarter earnings and discussed the following topics in its earnings conference call. Take a look.

ASP Changes

Brandon Heiken – Credit Suisse: This is Brandon Heiken speaking on behalf of Satya Kumar. I was wondering if you could talk about the ASP changes for both cells and modules in the quarter please?

A Closer Look: JA Solar Earnings Cheat Sheet>>

Peng Fang – CEO: So the ASP for sales during the quarter decreased in the high single digits, in our case, and the module is about the low-teens decrease in the price.

Brandon Heiken – Credit Suisse: How do you see in the third quarter and the fourth quarter?

Peng Fang – CEO: We see this decrease is stabilizing for the high-end of market and also different regions have different impacts due to local regulatory.

Brandon Heiken – Credit Suisse: But do you think that it’s stabilizing now in the third quarter or do you think that’s later in the fourth quarter or next year?

Peng Fang – CEO: We’re thinking it stabilized in the third quarter for the high-end of market and for the mainstream market.

Shipment Expectations

Y. Edwin Mok – Needham & Company: If I take your full year update, full year guidance and your third quarter guidance, that will imply that you expect shipment to increase in the fourth quarter? Can I ask you why do you expect your shipment to increase? Relate to that, in the third quarter do you expect your module shipment to increase or decrease?

Peng Fang – CEO: The first is, for your third quarter, our shipment is slightly down due to our strategy or policy to maintain the relatively healthy financial situation. So, we do have orders, but we only pick the orders which financially is not (breaking) our cash. So in the fourth quarter there are a few factors right now is undecided. First, for example, we have some project shipment in China and the shipment (base there is) uncertainty. We see some orders that we won some (biddings) over there could ship in the first quarter. Also, we are entering into the new markets such as Japan and other regions. There are pending orders in fourth quarter or early next year. So we’re thinking right now 2013 we will update you in the October, November timeframe.

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