High Energy Prices: How Samsung SDI, dynaCERT, and First Solar Stand to Benefit!

Samsung SDI Scores with Solar, Batteries, and Electronics All in One Stock!

Samsung SDI was once known for its displays. Today, the South Korean company is a global leader in advanced energy storage and electronic materials. Its Energy Solutions division, in particular, is likely to benefit in this economic environment. Here, Samsung manufactures premium batteries for the automotive industry. Technologically, it is considered one of the leading companies. Its customers include well-known companies such as BMW, Stellantis, and the Volkswagen Group. Samsung SDI is currently massively expanding its capacity in the US, as the Biden administration's Inflation Reduction Act (IRA) provides for substantial subsidies.

In addition, through its ESS segment, the company is active in large-scale storage solutions for solar and wind farms, as well as for industrial grid infrastructure. This is also a rapidly growing segment, as global capacity for green electricity is being massively expanded. Just one example: According to figures from the International Energy Agency (IEA), China alone expanded its solar capacity by 315 gigawatts last year. By comparison, Germany's entire power plant fleet—that is, all German energy sources combined—currently has a maximum installed net capacity of 274 gigawatts.

Samsung SDI is considered a leader in the development of solid-state batteries. Delivery of the first test samples to automakers is already underway, with the clear goal of commercial mass production starting in 2027. In the here and now, however, the slowdown in the electric vehicle market still dominated the first quarter. As a result, revenue was down slightly year-over-year at USD 2.43 billion. The bottom line is that the company returned to profitability, posting a net profit of approximately USD 37 million. Both management and the major banks view the first quarter as the low point in terms of results. The market sees strong growth in the energy storage business—specifically for AI data centers in the US—and rising demand for electric vehicles, which are becoming increasingly sought after in this oil price environment, as key drivers of operational improvement.

Samsung SDI is still in a heavy investment phase, but this is likely to lay the groundwork for future profit growth. Since some analysts, such as Goldman Sachs or Australia's Macquarie Bank, are very cautious, there is a chance of target price increases and "Buy" recommendations over the course of the year if operational improvements materialize. Consequently, dividends currently play only a minor role, and the same applies to share buybacks. Over the past two months, the stock has fallen by about 30%. However, before that, the stock had roughly quadrupled within 16 months. Accordingly, this presents opportunities for long-term investors to accumulate shares at lower levels.

dynaCERT: High Energy Prices as a Driver

For logistics firms and freight forwarders, 2026 has not been an easy year so far. High diesel prices are eating into margins. And a lasting peace that could push prices down in the short term is likely off the table for now. dynaCERT has developed a solution that can help affected companies address this challenge relatively quickly and over the long term. The Canadian company, led by an experienced German management team, is not seeking to replace the internal combustion engine in heavy-duty trucks. Instead, it aims to make existing diesel engines cleaner and more efficient, significantly reducing fuel consumption. At the core of the business model is the HydraGEN™ technology. The system produces hydrogen and oxygen directly on board the vehicle while it is operating and feeds these gases into the diesel combustion process. This optimizes fuel combustion, reducing diesel consumption and lowering emissions. Studies by testing agencies show significantly lower levels of nitrogen oxides and particulate matter. According to the company, the investment costs for HydraGEN™ technology can potentially be recouped in less than two years—depending on the number of kilometres driven.

The patented technology is also easy to implement. No separate hydrogen tank is required, allowing fleet operators to benefit directly from a retrofit solution rather than replacing entire vehicle fleets. The potential market is enormous. Estimates suggest that approximately 75 million trucks and other heavy-duty diesel vehicles are currently in operation worldwide.

At the International Investment Forum, President Bernd Krüper and CEO Kevin Unrath highlighted the company's unique positioning within the global transportation market.

https://www.youtube.com/watch?v=hE7EHsgouoE

According to analysts at GBC Research, dynaCERT is likely to increase its revenue by 75% this year to approximately CAD 21 million. In addition, the company is expected to turn a profit for the first time, at CAD 0.01 per share. This results in a price-to-earnings (P/E) ratio of 12. For a rapidly growing company, this is an attractive valuation. The currently high prices for diesel leave room for upside surprises.

In addition to selling its suitcase-sized electrolysis units for vehicle retrofits, dynaCERT plans to introduce a SaaS (Software as a Service) subscription model. Under this model, customers would pay an ongoing fee for services such as monitoring fleet performance and analyzing fuel and emissions savings. The significant reductions in emissions also open the door to participation in the carbon credit market. dynaCERT can aggregate the verified emissions reductions generated by its technology and market them as CO₂ credits on international carbon markets. This potential revenue stream further enhances the subscription model's attractiveness to customers. dynaCERT believes that a revenue-sharing arrangement for carbon credits is feasible, allowing both fleet operators and the company itself to benefit from the monetization of emissions reductions.

dynaCERT's share price has fallen by roughly a quarter in recent weeks. Prior to that, it had roughly doubled within a short period of time. The recent profit-taking may present an opportunity for bold investors to step in now and position themselves to benefit from the company's medium- to long-term growth potential.

First Solar: The Solar Champion in the US

In the US, it is not only the Inflation Reduction Act (IRA) that is driving investment in sustainable products. In the solar sector, the expansion of AI data centers is currently the main driver of demand. Let's be realistic: the power infrastructure in the world's largest economic powerhouse is outdated and inefficient. Many industry representatives see energy as a bottleneck to the current expansion of data centers. One of the beneficiaries is First Solar. With a market capitalization of approximately EUR 24 billion, the company is one of the largest players in the industry and the market leader in the US. A recent example is the construction of a Microsoft cloud data center in Arizona. Microsoft is collaborating closely with the project developer SRP on this initiative. The electricity for the data centers is primarily sourced from the massive "Sun Streams 2" solar farm. This solar farm has been fully equipped with First Solar's thin-film modules.

This also allows the company to benefit from several unique features. For instance, the company relies on proprietary thin-film technology. Instead of conventional silicon cells, it uses cadmium telluride modules, which offer physical efficiency advantages in hot, humid, or dusty regions such as deserts, as their efficiency does not decline as sharply at very high temperatures. Furthermore, as a US corporation, it is well protected against the generally cheaper, often equivalent competition from China and Southeast Asia. In addition to its plants in its home country, the company has a presence in Malaysia, Vietnam, and India.

At the end of April, First Solar reported strong first-quarter results. Revenue came in at USD 1.04 billion, a 24% increase over the same quarter last year. A key driver was the increase in sales volume (+31%). The company also posted a profit of USD 347 million, or USD 3.22 per share. This represents a 65% increase. The gross margin also performed strongly, expanding to 47%. With an order backlog of 47.9 gigawatts (GW) valued at approximately USD 14.4 billion, revenue is secured well into the coming years. However, there are also two clear risks for First Solar's business and stock. US subsidies (IRA) are supporting the business, but could quickly dry up given the government's erratic policies. In addition, US bureaucracy remains an issue: applications for the construction of data centers and the underlying energy infrastructure are currently backed up. This can sometimes lead to delays in orders.

Samsung SDI is still in a strong investment phase. This will gradually come to an end over the course of this year, so profits should increase. According to analysts, dynaCERT is expected to increase its revenue by 75% this year alone. High diesel prices make the technology extremely attractive to fleet operators. First Solar is the US solar champion, benefiting greatly from the expansion of energy infrastructure for data centers. One risk remains the US government's negative stance toward non-fossil fuel energy sources.