Please ensure Javascript is enabled for purposes of website accessibility

Why JinkoSolar Stock Popped 12% This Morning

By Rich Smith – Jun 4, 2020 at 10:37AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A favorable ITC ruling gives JinkoSolar the win...for now.

What happened

Shares of JinkoSolar (JKS 1.11%), a China-based maker of solar modules, silicon wafers, solar cells, and silicon ingots, and also a developer of solar farms, soared more than 12% out of the gate on Thursday. The company had just announced that the United States International Trade Commission (ITC) has ruled that JinkoSolar's products do not infringe a patent asserted by South Korea's Hanwha Q CELLS. 

As of 10 a.m. EDT, JinkoSolar stock is still holding on to a 6.2% gain.

U.S. Department of Commerce building.

Image source: Getty Images.

So what

Jinko was one of three companies targeted in a Hanwha complaint with the ITC in March 2019 that asserted infringement of its U.S. Patent No. 9,893,215 relating to "solar passivation technology" in solar modules. Yesterday, an ITC administrative law judge issued a "final decision" that Jinko's products do not infringe the patent.

Now what

Jinko shareholders are happy with the ruling, which -- for now -- should prevent Hanwha from interfering with Jinko's marketing of its product and prevent customs officials, for example, from seizing shipments based on an intellectual property violation. In a statement, however, Hanwha insisted it remains in the right and promised to "seek all possible legal avenues to protect the company's valuable intellectual property rights."

Translation: Hanwha will appeal. This argument isn't over yet. 

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

JinkoSolar Holding Co., Ltd. Stock Quote
JinkoSolar Holding Co., Ltd.
JKS
$53.50 (1.11%) $0.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.