14. January 2021 | 18:34 CET
BASF, Bayer, Enapter: From top dogs to young guns
When it comes to chemical products or other engineering services, the Germans are not easily outdone. Although emerging companies worldwide are sometimes hyped on the stock market, in practice, the motto is often still: Germany first! But it's not always dull corporations like BASF or Bayer that cause a sensation - there are now also innovative players from Germany, like Enapter in the hydrogen sector.
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ISIN: DE000A255G02 , DE000BASF111 , DE000BAY0017
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Hydrogen share Enapter: German engineers are turning up the heat
The Enapter share has caused a sensation in recent months. Still trading under the name S&O Beteiligungen, the share has been on a roller coaster ride, bringing many investors quick profits. Enapter has set itself the task of producing green hydrogen using German technology. With its electrolyser, which is modular in design, Enapter wants to produce hydrogen in a climate-neutral way and turn the hydrogen industry around. The goal: to be able to produce hydrogen even more cost-effectively and efficiently. The next generation of the electrolyser is already in development. According to Company sources, the finished product could be presented in the first half of 2021.
Several patents protect Enapter's technology. When asked about the Company's competition, representatives point to the patents and its technological lead, which is between three and five years over the competition. Starting in 2022, the Company wants to ultimately bring its horsepower to the road and mass-produce its electrolyser. It plans to open a factory in North Rhine-Westphalia that will produce up to 100,000 electrolysers a year. Even if the stock still has to be considered a hot potato, the German hydrogen stock with its technological edge is definitely one for the watch list.
BASF wants to become leaner after the Corona year
Investors do not have to remember BASF's name. The stock is an evergreen on the trading floor and has provided generations of private investors with reliable dividends and the odd share price gain. But 2020 was a challenging year for BASF. The pandemic hit the Ludwigshafen-based Company, margins fell and high fixed costs weighed. From a whopping profit in the previous year, BASF plunged to a bitter loss of EUR 2.30 per share after nine months of the fiscal year 2020.
But low figures are no reason for the global corporation to resign. The Company has reviewed its processes and put some areas up for disposal. The Group wants to become leaner and more agile. These measures will pay off in the long term. Although there is little imagination in the stock currently, investors can keep the value in mind, also thanks to the dividend yield of 5% - a watch list is not necessary with BASF.
Bayer: little can shake this big ship
Bayer is just as well-known as BASF. Only two hours further north and also on the Rhine are the Headquarters of the chemical Company. Although Bayer was also affected by the pandemic in 2020, there were only a few write-downs. At least there was some legal progress around the permanent construction site "Monsanto takeover." Like BASF, Bayer is also restructuring but is a few steps further along the way.
The market leader's shares have recovered over the past three months, achieving a return of around 10% in this period. However, the stock is only likely to gain further momentum above the EUR 58 mark. Since Bayer also offers a dividend of around 6%, it is also suitable for long-term investors. With German quality companies such as BASF or Bayer, investors will not make any mistakes even with the DAX around 14,000 points. However, if the portfolio is a little more dynamic, private investors can also add some of the bold challengers to the established top dogs. Thanks to German technology, Enapter is about to become a household name in the field of green hydrogen.