<FSLR) has sold off 11% since reporting a fifth straight quarter of declining margins late Thursday>
FSLR's gross margins have been 51% (3FQ09), 41%, 50%, 48%, 40% (3FQ10). I haven't followed JKS, but I'd guess FSLR's margins have been higher than JKS's for all those quarters.
FSLR is further along than the Chinese solars, in becoming vertically integrated, including Systems, which are inherently low-margin. As JKS, TSL, YGE become vertically integrated, their margins will fall also.
That said, JKS's results are impressive, and I may have to start following them. If they can maintain margins over 30% in 2011, I may label them "investment-grade", like FSLR, TSL, and YGE. |
