JA Solar Holdings Co., Ltd.'s (JA Solar) ADR price has increased significantly since our previous update report as rising crude oil prices, buoyancy in the equity markets and easing liquidity conditions have improved investor sentiments. Going forward, due to rising crude oil prices and improved liquidity, we expect a revival in demand for solar products. Therefore, although the target price does not support a BUY rating at current price levels…

JA Solar Holdings Co., Ltd.’s (JA Solar) 1Q 09 results were significantly below our and market expectations. The company has not provided any outlook for FY 2009, due to poor visibility for the solar market over the medium term. In view of the weaker than expected 1Q 09 results and uncertainty over the medium term, we maintain our HOLD rating for the ADR until we can reassess the ADR in our next update report. We will reassess our ADR rating for JA Solar in the coming weeks....

Over the past few years, solar companies have created huge over-capacity in anticipation of continual growth in demand for solar products. However, the recent economic downturn has led to a reduction in liquidity and lower crude oil prices, which has led to reduced demand for solar products. As a result of this over-supply situation and reduced demand, the price of solar products has tumbled over the last few months…