Is JinkoSolar Holding Co., Ltd. (JKS)’s Rebound For Real?

The problem for JinkoSolar Holding Co., Ltd. (NYSE:JKS) is that it appears that Chinese banks are looking to keep most of its competitors afloat as well. With LDK getting a $58 million loan agreement with the China Development Bank to build new projects and Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE) finding $165 million in loan funding, JinkoSolar’s relatively debt-free balance sheet might not hold up long enough to outlast its peers. JinkoSolar’s best bet might be to have those rivals go bankrupt, in the hopes of picking up their assets at fire-sale prices.

The other threat against JinkoSolar is that Europe recently imposed tariffs on Chinese solar panels. Although the current rates are lower than JinkoSolar and its peers had feared, there’s no guarantee they won’t rise if a resolution to the trade dispute isn’t reached soon. Tariffs give U.S. giant First Solar, Inc. (NASDAQ:FSLR) and other non-Chinese producers a competitive advantage that JinkoSolar can ill-afford to give them.

In JinkoSolar’s report, watch for news on how the company plans to manage its near-term cash flow. With such large losses, it’s critical for JinkoSolar Holding Co., Ltd. (NYSE:JKS) to have financing in place to avoid the problems its Chinese rivals have had to deal with.

The article Is JinkoSolar’s Rebound For Real? originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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