March 7th, 2022 | 12:48 CET
Attention: Nordex, Siemens Energy, Memiontec, Siemens - Out of the crisis with GreenTech!
Table of contents:
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Siemens Energy - Standing in solidarity
Siemens shows its colors! The technology group and its subsidiaries are reacting consistently and stopping their new business with Russia. This also applies to international deliveries destined for Moscow from other parts of the world. The local service and maintenance business, on the other hand, will be continued with local cooperation partners, and current contracts will be fulfilled. In recent years, Siemens delivered trains to Russia and concluded maintenance contracts. According to Siemens, business with Russia accounts for about 1% of annual sales.
Siemens Energy has also stopped all new Russian orders and is examining the effects of the sanctions on the Group. Meanwhile, incoming orders from other regions are humming. The energy company received a significant electrolyzer order from Denmark's European Energy for the world's first eMethanol project. The Munich-based company will design, supply and commission the electrolysis system. It consists of three complete arrays of the latest and most powerful range of PEM electrolyzers plus transformers, rectifiers, control technology and the equipment for the production of demineralized water.
The project will use low-cost, green power from an on-site 300 MW solar farm to economically produce fuel. End-users of the eMethanol will include shipping company Maersk and fuel retailer Circle K. The promising project marks the entry into CO2-neutral shipping on an industrial scale. The Siemens Energy share was able to gain 10% in the last few days against the market trend but is still trading 40% below its 52-week high. Collect in weakness!
Memiontec - Record clean water sales and dividend increase
We find an Asian GreenTech share on the Singapore stock exchange. The water specialist Memiontec is listed there, covering all water treatment and purification areas for more than 20 years and constantly expanding. The primary investment areas are Indonesia, Singapore and the People's Republic of China. With the entire value chain in the water segment, the Indonesia-based Company is one of the first points of contact for local disposal concepts.
Now the annual figures for 2021 have been published. The Company achieved record sales of SGD 45.6 million in its four core segments, almost 32% more than in the previous year. The supporting project was the construction of a membrane filtration system at the Tuas South Desalination Plant worth SGD 33.2 million. The gross profit achieved of SGD 6.3 million increased the cash balance to SGD 15.5 million. Earnings per share (EPS) was 0.70 cents, of which 0.209 cents is to be distributed to shareholders.
The multi-pronged, synergistic business model again impressively demonstrated its performance. Currently, the order book is filled with SGD 78 million, half of which comes from the higher-margin Indonesia. The Public Utilities Board of Singapore is expected to launch several relatively large-scale public tenders in 2022, with such contracts offering both stable cash flow and low credit risk.
Memiontec is among the green investments gaining favor among ESG investors in the wake of the global shift in thinking toward climate change mitigation. Due to the operational momentum, the share price rose strongly in the last 12 months. Currently, the share is available for SGD 0.81. The sales in Germany are decent, but we advise setting a limit when buying.
Nordex - Germany as a location is too expensive
Now it is official! The wind turbine manufacturer Nordex is under massive competitive and thus also cost pressure. For this reason, the costly production of rotor blades at the Rostock freight traffic center is discontinued. The closure affected around 600 employees. Nordex employs more than 8,000 people across the Group.
The German wind power company has been suffering from increasing price competition since the introduction of auction systems in most energy markets. The electricity producers with the lowest bids are awarded the contract in the auction system and pass this cost pressure on to the wind turbine manufacturers, reducing their margins. Therefore, producers are forced to reduce their costs even further to remain globally competitive. The Ukraine crisis and the rise in raw material prices placed an additional burden.
The cost of generating energy from wind has fallen by around 50% in the last five years, but the initially higher profitability gradually receded. The stock market is currently pricing in a new energy scenario for Central Europe, focusing on green energy through large government programs to create medium-term supply security. Nordex's margin stands and falls with the increased procurement prices and the possible passing on of these costs to customers.
The price of the Nordex share has been in a long slump. However, since its low of EUR 10.80, it has been on the upswing due to the search for oil and gas alternatives. Therefore, in the current environment, it makes sense to take a medium-term positioning in the EUR 12-14 range.
The stock markets are in absolute crisis mode. Very high volatilities are weighing on the minds of investors. With the looming energy crisis due to the drastic increase in the price of fossil fuels, there is now an accelerated rethinking process in favor of alternative energies. Siemens Energy and Nordex are well positioned but suffer from the supply chain issue. Such tones are not to be heard from Memiontec. On the contrary, the Asian water treatment business is humming.
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