UPDATE 2-JA Solar Q4 profit and rev surge, shares rise

(Recasts; adds analysts' comments, updates share movement)

By Nachiket Kelkar

BANGALORE, March 12 (Reuters) - China-based solar cell maker JA Solar Holdings Co (JASO.O: Quote, Profile, Research) reported a 47 percent rise in fourth-quarter profit as revenue tripled, helped by higher demand for solar power, and forecast 2008 revenue above market estimates, sending shares up as much as 12 percent.

JA Solar expects 2008 revenue of $990 million to $1.10 billion. Analysts on average were expecting $779.2 million, according to Reuters Estimates.

The company, which nearly tripled its power production capacity to 48.7 MW in the fourth quarter, said it plans to raise its annual production capacity to 500 MW from 425 MW by the end of 2008.

"Basically JA has a higher visibility into their production ramp, as well as their gross margins due to their silicon procurement levels, which are significantly better than the industry in general," analyst John Hardy of American Technology Research said by phone.

The company also forecast 2008 production output of 340 MW.

EUROPEAN SUBSIDIES

Most of the demand for solar power has come from Europe and analysts expect this growth to continue in 2008.