November 22nd, 2023 | 07:20 CET
BYD with "Tesla killer", JinkoSolar with sales record, and Klimat X Developments with milestone payment
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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
Klimat X after milestone payment: When will the share take off?
The business model of Klimat X Developments makes the share an exotic stock, making the Company all the more exciting for investors looking to diversify their portfolios. The Canadian specialist for CO2 certificates combines the fight against climate change, sustainable agriculture and economic support for remote regions. Its core business is the protection of forests and mangroves from deforestation and their reforestation. The CO2 certificates continuously generated in this way are sold to companies worldwide. In addition, agriculture generates income, for example, from selling coconut water. Klimat X is currently advancing projects in Sierra Leone, Mexico and Suriname.
A milestone payment was recently reported. In Sierra Leone, the mangrove reforestation project has now reached a size of 1,400 hectares. This resulted in a payment of USD 500,000 from a customer. The Fortune 500 company secured the future CO2 emission certificates from the project in June 2023 and is supporting the development of the 5,000-hectare project with milestone payments. To put this into perspective, the payment corresponds to around 5% of Klimat X's market capitalization.
James Tansey, CEO of Klimat X, said: "This second milestone shows our successful planting in the summer of 2023 and demonstrates our ability to meet the standards expected by one of the world's largest buyers of carbon credits. This is an important milestone and shows how carbon credits can lead to real reductions in greenhouse gas emissions. Building on the success of the last 12 months, we are now planning how best to scale up this unique forest restoration program."
Klimat X's share price has yet to benefit from the news. However, if further milestones are reached soon, the share price is expected to respond positively. Investors will have the opportunity to ask CEO James Tansey what is planned for the coming months on December 5, 2023. The Company will be presenting at the virtual investor conference - IIF. Please click here to register.
BYD: "Tesla killer" on the horizon
BYD shareholders are also wondering when the share will take off. Because here, too, things are going well operationally. The Chinese company overtook Tesla as the largest manufacturer of all-electric vehicles in the third quarter of 2023. And BYD continues to step on the gas. BYD is attacking Tesla's bestseller Model Y with two new models. The Song L is due to be launched on December 15, 2023. The mid-range electric SUV was unveiled at the Shanghai Auto Show in April. The vehicle has been available to pre-order since the end of October, and over 11,000 orders have been received since then. The Song L is available with outputs between 150 kW and 380 kW. The CLTC range is between 550 km and 662 km, depending on the model. Sales prices are expected to start at USD 27,700. In China, Tesla's Model Y is available from USD 36,900.
Before this, BYD had previously presented the Sea Lion 07 electric SUV. It is expected to be sold under the Ocean brand. Here, too, sales prices are expected to be below USD 30,000. This means that competition in the market for mid-range SUVs, which the Tesla Model Y dominates, will be further intensified in the coming year.
JinkoSolar celebrates, Canadian Solar suffers
JinkoSolar is bucking the negative trend in the solar industry. After numerous US companies such as SolarEdge and Enphase had already published weak figures and forecasts, Canadian Solar has now followed suit. Although 8.3 GW were delivered in the third quarter, 39% more than in the same period last year, sales and earnings were still down. Sales fell by 4% to USD 1.85 billion compared to the same period last year. The slowdown in business becomes apparent when looking at the second quarter of 2023 when sales were still 22% higher. Canadian Solar more than tripled its net profit YOY to EUR 21.9 million. However, there was no strong share price reaction. Canadian Solar shares have already lost more than 36% of their value this year.
JinkoSolar has "only" lost around 20%. However, this is not due to the operating performance but more to the industry environment. Following the convincing quarterly figures, the Chinese solar group reached the next milestone. The Company reported that it has exceeded the 200 GW mark in solar modules delivered since its foundation in 2010. This year alone, Jinko plans to deliver 70 to 75 GW - and the trend is still rising.
The share prices of the companies discussed have not shown positive developments in recent months. However, they have performed significantly better than SolarEdge, Siemens Energy and Nel. More importantly, BYD, Klimat X and JinkoSolar are delivering operationally.
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