Jinko Solar is the largest solar panel manufacturing by GW of panels deployed and sold annually. As more central governments develop stimulus programs an increasing caveat of these programs is a focus on clean energy. The rapidly declining price of solar makes it a viable alternative to traditional energy sources. However, what makes solar energy attractive for adoption is also a reason not to invest in it. Solar Panel manufacturing will likely go the way of P/C and become a commoditized product will low profit margins. Given that profit margins will inevitably decline substantially why do I believe in the company. Firstly, I believe there will be a significant increase in demand for solar panels given these new stimulus programs and policy changes. This will probably lead to increasing profits even with a decline in margins. Secondly, I believe the additional capital focused on environmentally conscious companies will lead to a valuation expansion for Jinko Solar. This should lead to a decent return in the intermediate term. The fact that I’ve bought into JKS American depository receipt and the passage of the “Holding Foreign Companies Accountable Act” will dampen this valuation expansion for the next few months until the bill is truly dead (or passed in which case the share price will suffer). Thirdly, Jinko Solar is already the largest solar panel manufacturing and with the economy in extreme distress smaller manufacturing firms will go out of business. This will increase the dominance of the larger players such as Jinko. While I believe this company will outperform in the intermediate term, once their primary product becomes commoditized margins will drop and handsome returns will be impossible, however until that occurs the company should perform fantastically.