30. September 2021 | 13:29 CET
EuroSports Global, Daimler, JinkoSolar - Eyes open!
Germany has voted. The new federal government is likely to attach great importance to the topics of renewable energies and electromobility. The mentioned areas have also gained weight internationally. With these three shares, investors can profit from the two megatrends. Who is the favorite?
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ISIN: EuroSports Global | SG2G55000001 , DAIMLER AG NA O.N. | DE0007100000 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007
EUROSPORTS GLOBAL LIMITED - Well equipped for the next chapter
The Singapore-based Company's core business is the distribution of ultra-luxury automobiles and the provision of related services. However, the future music plays in the field of electric mobility. Through subsidiaries, the Singaporeans are addressing the market for e-motorcycles. The sector is expected to grow to a volume of around USD 10 billion in the next few years.
In order to also strengthen the growth in terms of personnel, the subsidiary EuroSports Technologies promoted Joshua Goh. He has already been with the Company for several years, in the position of Deputy CEO. Joshua Goh has extensive experience in automotive, capital markets, corporate finance and restructuring. The appointment is in line with the Company's long-term succession planning strategy. Goh's lofty goal is to contribute noticeably to the next chapter in the electric vehicle industry.
EuroSports Technologies Pte. Ltd. (EST) is currently developing a next-generation e-motorcycle in partnership with Strides Transportation. The goal is to develop and distribute Smart Electric Motorcycles in Singapore and the Asia-Pacific region. The first prototype is expected to be completed by the end of the year. Initial sales are expected in 2022. In addition, the Group is active in the market with Scorpio Electric Ltd. The 75% subsidiary specializes in the manufacture of high-performance electric motorcycles. At the beginning of 2021, the Company presented the Model X. With this model, the Company competes against rivals such as Vespa, Super Soco, NIU and Etergo.
The stock has been correcting in recent months. The Company currently has a market capitalization of SGD 47 million, the equivalent of USD 34 million. From the Company's point of view, the valuation is far too low. For this reason, the Singaporeans launched a share buyback program at the end of August, allowing up to 10% of share capital to be acquired.
DAIMLER AG - Entry into European battery cell alliance
At the moment, much of the automotive industry is revolving around the issue of chip shortages. It is associated with production downtimes, significant delays in deliveries and price increases for end customers. Recently, the Group published trend-setting information on its battery/e-car strategy. Daimler had only publicly decided in July to invest extensively in battery cell plants itself in order to secure the supply of batteries for its electric cars. The goal is to build up a production capacity of more than 200 gigawatt-hours of battery cells annually by 2030; this cell capacity would mathematically be enough for 2.5 million Mercedes EQC models.
The southern German Company now reported joining the battery cell alliance of Stellantis (Netherlands) and TotalEnergies (France). The Mercedes-Benz passenger car division will become an equal shareholder in the Automotive Cells Company (ACC) with a one-third stake. From 2025, ACC is to supply the Germans with battery cells and modules from factories in Germany and France. Total investment in ACC is expected to exceed EUR 7 billion.
JINKOSOLAR HOLDING CO LTD ADR - Capacity expansion
The Chinese solar module and solar cell manufacturer recently announced USD 500 million to invest in constructing a monocrystalline ingot and wafer production facility in Quảng Ninh Province, Vietnam. The Vietnamese government approved the project in early 2021 and is expected to be operational in the first quarter of 2022 with an annual capacity of seven gigawatts (GW). The construction of this plant is the Group's response to the emerging increase in demand in the medium term and also differentiates the global supply chain. Analysts forecast sales of just under USD 8 billion in 2022. The Company is currently valued at USD 2 billion and has a 2022 P/E ratio of 11, making the innovative Group moderately valued.
Electromobility and renewable energies are megatrends. Investors can cover the topic of solar with the moderately valued stock of JinkoSolar. With Daimler, investors are investing in one of the largest automotive groups in the world. For those who want to participate in the dynamic growth of the e-motorcycle market, EuroSports Global is exciting.