September 16th, 2021 | 10:46 CEST
BYD, Kainantu Resources, JinkoSolar: Investing in green technology
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"[...] We know exactly what we are doing and are implementing what we consider to be a proven technology in an industrially applicable and scalable way. [...]" Uwe Ahrens, Director, Altech Advanced Materials AG
BYD: Everything here, actually
The BYD share is one of the high flyers on the stock exchange floor. On a one-year view, the value increased by more than 200%. In recent days, however, the price declined a little. What is the reason for this? The Company has stopped the IPO of its chip division BYD Semiconductor. The Company was supposed to go public in Shenzhen. In the meantime, it wants to make a new attempt, but Beijing's interventions around IPOs and expansion plans of powerful Chinese companies are causing unrest in the market. With BYD now suffering from the conditions alongside companies from the education sector and Alibaba and its fintech subsidiary Ant, nervousness is growing.
Still, investors can look on the bright side - after all, BYD has a chip division. These products are in short supply worldwide, and their scarcity is even curbing the production of many BYD competitors. Since BYD is also well positioned in terms of batteries and produces them itself, the Company appears comfortable. However, the valuation is already ambitious. BYD is a stock that investors can buy on weakness.
Kainantu Resources: Papua New Guinea as an emerging location
Closely linked to the boom in electric mobility is the steadily increasing demand for copper. Recently, media reports have been making the rounds according to which international mining companies are focusing on the Asia-Pacific region in developing new deposits. The reason for this is that production is falling in traditional mining regions. In this context, the shares of Kainantu Resources are considered interesting. The Company is developing gold-copper projects in Papua New Guinea and recently purchased additional land.
Kainantu is in the early stages of exploration and most recently took auger samples to discover gold deposits and further define both the KRL South and KRL North areas. In the process, it encountered a rock sample containing 40.13 g/t gold. Kainantu Resources' shares are currently valued at only about CAD 10 million. As the Company is well connected in Papua New Guinea and has an excellent connection to the government, the trend towards more exotic mining regions could positively affect the share.
JinkoSolar: How does the market interpret the numbers?
If you look at studies on the acceptance of electromobility, it is clear that those respondents who use a photovoltaic system themselves are particularly open to electric mobility. The synergies are obvious. Appropriate photovoltaic cells on the carport and the e-car are charged in a largely CO2-neutral manner. In the future, JinkoSolar modules have a good chance of being installed on many roofs in Germany and globally. Here, quality and efficiency are right. The figures published yesterday show exactly how the situation is at the Company. Even more important is how the share price reacts to the figures. If the level around EUR 40 in Germany holds, the share could continue to go up. If the figures are interpreted rather negatively, the value can also test the December low again.
Investments in renewable energy are challenging. Many companies make their profits only in the future. In addition, it is not clear whether the expected growth will materialize due to strong competition. In the case of BYD, the current China skepticism adds to the positive e-car fantasy. Kainantu Resources, on the other hand, is doing solidly. The micro-cap is moving forward step by step. However, the Company, which focuses on gold and copper, must be considered speculative given its early stage.
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