Chinese Solar Module Producers: We Initiate Coverage With No-Moat Rating; CSI Is Our Preferred Pick

We initiate coverage on four Chinese solar module producers: Jinko Solar, JA Solar, Trina Solar, and CSI Solar. Among these, Jinko, JA, and Trina rank among the top four global module suppliers alongside LONGi Green Energy, while CSI held the sixth position in module shipments in 2023. Due to intense competition and the cyclicality of the industry, we assign a no-moat rating to all four companies. Our fair value estimates are CNY 11 for Jinko, CNY 22 for JA, CNY 30.90 for Trina, and CNY 17.70 for CSI.