Close menu




August 25th, 2022 | 13:12 CEST

Finding the best GreenTech stocks: BYD, Defense Metals, JinkoSolar and Nordex in focus

  • Mining
  • RareEarths
  • Electromobility
  • GreenTech
Photo credits: pixabay.com

Since Joe Biden's Climate Bill, GreenTech stocks have been on everyone's lips. That is because, in addition to the EU, the US now also wants to step on the gas pedal significantly. It is all about investing in the future of climate protection. This primarily involves technologies for alternative energy generation, such as solar or wind power plants. Equally in focus, however, are the drive technologies for the many vehicles on our roads. The pivotal point is strategically important metals; they are rare and highly sought after. International dependence on China makes many projects a tough balancing act. But some companies are well positioned. Have they already gone too far?

time to read: 4 minutes | Author: André Will-Laudien
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , DEFENSE METALS CORP. | CA2446331035 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , NORDEX SE O.N. | DE000A0D6554

Table of contents:


    Terry Lynch, CEO, Power Nickel
    "[...] Nickel, therefore, benefits twice: firstly from its growing importance within batteries and secondly from the generally growing demand for such storage. [...]" Terry Lynch, CEO, Power Nickel

    Full interview

     

    BYD - The Chinese manufacturer knocks on Europe's door

    Since Warren Buffet's entry, the "Build Your Dreams" share (BYD) underwent a fabulous development. In the meantime, the group has become one of China's largest integrated technology companies. Its market capitalization recently surpassed that of Volkswagen, the world's largest car manufacturer.

    In addition to Japan, the Company has now made its way to Europe. At the upcoming Paris Motor Show in September, it plans to unveil 4 models to the general public. Active talks are also already underway with potential dealers about a sales partnership. The European automotive industry is still lagging somewhat behind China and the US in e-mobility but has caught up considerably in the last 2 years. Now there is a trial of strength between German and international engineering. However, since lithium-ion technology is not really getting off the ground, the most favorable supplier will ultimately win the race.

    BYD has already set up camp in Norway. What sounds a bit ambitious to the ears of many is an attempt to break into different segments. While the BYD SUV Tang is aimed more at families, the Han is a chic sedan that appeals more to Model 3 or even Model S enthusiasts who might find a Tesla too expensive. And then there is the Atto 3, a mid-size car with a hatchback intended for the masses. It could become a competitor to the VW ID.3 or CUPRA Born. The BYD share, which is no longer cheap, is currently consolidating between EUR 35 and EUR 40. Investors should set a tight stop at EUR 33.80 and quietly watch what happens.

    Defense Metals - Excitement with a view to 2023

    Another protagonist among the GreenTech stocks is the Canadian rare earth explorer Defense Metals. The Company focuses on substances commonly used in the energy market, military and national security. These rare metals are especially important in the production of green energy technologies because they enable high-strength alloys and provide magnets for generators.

    Defense Metals' proprietary Wicheeda property consists of 9 mineral claims covering an area of 4,244 hectares located approximately 80 km northeast of the city of Prince George, British Columbia. Figures from the 2021 Pre-Feasibility Study provided significant results. For example, an open pit mine with mill throughput of 18 million tonnes is expected to be possible, and the mine life is calculated at 19 years. At an internal rate of return of 18%, this results in a present value of CAD 517 million. An average of 25,423 tons of rare earths could be produced annually. Preliminary work will continue until mid-2023, and management facilitated a site visit for strategic stakeholders and analysts in mid-August. Interest in the property is exceptionally high.

    For North America, a new supplier of rare earths would be a small step toward greater independence from China, which accounts for 85% of the world market. With the latest results, Defense Metals (DEFN) shares are stabilizing quite well between CAD 0.17 and CAD 0.22. With 183.4 million shares, the current market value is just under CAD 36 million. Looking ahead to 2023, we believe much higher prices should be expected.

    JinkoSolar and Nordex - It is not that simple after all

    Large consumers of strategic and rare metals are the GreenTech companies JinkoSolar and Nordex. However, due to their different focus and location, both have to deal with very different requirements and problems.

    JinkoSolar from China had raised over USD 1.5 billion in funds a few months ago to stem further developments in panel technology. This was at a time when markets were open to capital raises. Currently, China is struggling with weaker domestic demand and exports are also suffering from global recessionary trends. It is not yet a burden for Jinko because the backlog of orders from the climate protection programs, especially from Europe, is still significant. However, the euro is gradually weakening and undermining future growth opportunities. Due to the ongoing drought in Sichuan province, the state has now rationed electricity, which is affecting manufacturing capacity at the plants there. As of now, it is uncertain when JinkoSolar's production facilities will be running at full capacity again. Since JinkoSolar followed a steep upward trend until recently, doubts should now be raised as to whether the high at just under EUR 77 has not marked the end of the line.

    Nordex has now procured fresh capital from the scolded shareholders several times. After two profit warnings in a row, the Company now believes it will not be profitable again until 2023. However, Nordex was able to land new major orders from Germany and Scandinavia in July. The linchpin for the Hamburg-based company's profitability remains the high cost of preliminary products, a lack of personnel and constant disruptions in the supply chains. However, these issues will only ease in the long term and are a heavy burden. After a brief rally to just above EUR 11, the stock has now landed back at EUR 9.70. However, it is still a long way from the low of EUR 7.04. The mood for the share is slowly improving, but we do not expect a miraculous rally in the short term. However, additional purchases in the EUR 7.50 - 8.50 range make sense in the medium term.


    The availability of strategic metals could become the linchpin of essential products in the future. In order to drive GreenTech forward, an abundance of different metals is needed, which are not so easy to find everywhere on the globe. China is in the driver's seat here, while the Europeans are finding it increasingly difficult to maintain a solid position politically. Defense Metals is poised to provide an important building block in the foreseeable future.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    André Will-Laudien

    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.

    About the author



    Related comments:

    Commented by Armin Schulz on February 6th, 2023 | 07:46 CET

    Nel ASA, Manuka Resources, TUI - Which stocks will take off in 2023?

    • Mining
    • Commodities
    • Silver
    • Gold
    • greenhydrogen

    Shares are a popular form of investment that can hold a lot of potential. Particularly interesting are stocks that are positioned before a turnaround. This means that the Company has had difficulties in the past but is now expected to see positive changes in its business potential. These stocks can bring large profits if successful, as they often trade at lower prices and have great upside potential. However, it is important to thoroughly analyze the Company's financials and business model before investing in such stocks. We take a look at three promising titles.

    Read

    Commented by Juliane Zielonka on February 3rd, 2023 | 12:58 CET

    Booming energy supply & AI with GoviEx, AMD and Meta Materials

    • Mining
    • uranium
    • GreenTech
    • chips

    The EU Parliament has included gas and nuclear power as "transitional activities" in the list of green technologies that accelerate the transition to climate neutrality. Demand for uranium continues unabated worldwide. Explorer company GoviEx is filling the gap through its exploration activities for uranium at two renowned sites. Those interested in learning more can ask CEO Daniel Major about it on February 15. The expansion of a stable energy supply and simultaneous CO2 reduction is also a big topic for semiconductor manufacturer AMD. ChatGPT is on everyone's lips and is only the beginning of an AI boom that will require chip technology at universities and data centers, for example. Zuckerberg is also using AI to expand his metaverse. He plans to use artificial intelligence to explore green energy options further.

    Read

    Commented by Stefan Feulner on February 3rd, 2023 | 12:54 CET

    BYD, Power Nickel and Infineon - News drives share prices

    • Mining
    • Nickel
    • Electromobility

    The events are overlapping. In addition to the daily geopolitical news, the central banks are in the spotlight these days. Despite a further interest rate step, the FED sent positive signals to the capital market because the end of the strict monetary policy is approaching. In addition, the reporting season started, which could offer several surprises already at the start. After the price corrections, many companies have opportunities for a sustainable rebound.

    Read