How your portfolio can benefit from the green energy boom with Nordex, RE Royalties, and JinkoSolar

Nordex – With strong tailwinds

The Nordex Group is showing its strongest side in the third quarter. On October 9, the Company reported order intake of 2.17 gigawatts (GW), which represents a significant increase of 26% over the previous year. In the first nine months, the volume totaled an impressive 6.7 GW, representing growth of over 30%. This momentum was accompanied by stable price development, with the average sales price rising slightly to EUR 0.93 million per megawatt. The foundation for this solid operating performance was laid in recent months.

The momentum continued with a series of large concrete orders at the beginning of the fourth quarter. Orders were received for 236 MW in North America, a 189 MW project in Ukraine, and another 126 MW package from German developer wpd. This latest news underscores the Company's broad geographic diversification and international competitiveness. Particularly noteworthy is the acquisition of a new customer in Turkey, which indicates successful expansion into new markets.

Analysts are largely optimistic. Deutsche Bank and Citigroup recently confirmed their "Buy" ratings and raised their price targets to EUR 26.00 and EUR 26.50, respectively. They cite strong order momentum and stable price levels as the main reasons. However, there are also more skeptical voices. RBC Capital sees significant risks with an "Underperform" rating and a price target of EUR 18.50. They warn that German business could weaken significantly from mid-2026 onwards, and point to structural headwinds. The stock is currently trading at EUR 24.10, close to its annual high of EUR 24.40.

RE Royalties – A stable foundation amid changes in the energy industry

The renewable energy sector is a challenging market with high investment costs and regulatory uncertainties. RE Royalties, however, relies on a proven business model that generates revenue through royalties. The Canadian company provides capital to project developers and, in return, receives a share of the long-term revenue from their energy plants. The Company takes care to fill its portfolio with mostly solar, wind, and hydroelectric projects that are already connected to the grid, cleverly avoiding the tricky and often costly construction phase.

This model is attractive to investors, who benefit from predictable cash flows that are secured by long-term power purchase agreements. RE Royalties' business model therefore delivers steady returns that are largely independent of what is happening on the stock market.

The Company's strength lies in its broad diversification. With over 100 investments across various technologies and secure jurisdictions, including North America and Europe, cluster risk is minimized. This diversification makes the Company resilient to regional economic fluctuations or changing subsidy systems. Although recent quarterly figures show a decline in revenues, which is attributable to project cycles, management's focus on cash flow stability remains unchanged. The ability to maintain financial health even in more turbulent times underscores the robustness of the strategy.

The consistent dividend policy is particularly interesting for yield-oriented investors. Since 2020, the Company has been paying a quarterly dividend of CAD 0.01, which offers an attractive level of income at the current low share price. These regular distributions are funded directly from operating royalty revenues, making them sustainable and less speculative than pure growth promises. At a time when many growth stocks are not paying dividends, RE Royalties offers a concrete monetary stake in the megatrend of energy transition that does not depend on future price gains. The stock is currently trading at CAD 0.31.

JinkoSolar – Between sales records and red figures

So far, this year has been highly contradictory for JinkoSolar. On the one hand, the solar module manufacturer was able to further expand its position as global market leader with sales of 41.8 GW in the first half of the year. On the other hand, the Company is facing a heavy financial burden. Revenue fell significantly compared to the same period last year, resulting in an operating loss. Increased manufacturing costs and intense market pressure are putting considerable strain on margins. Even in the area of research, traditionally one of the Company's strengths, a more cautious approach is emerging with reduced budgets.

Despite the red figures, there are definitely rays of hope in terms of technology and operations. The introduction of the Tiger Neo 3.0 module highlights the Company's innovative strength. With an output of up to 670 watts and high bifaciality, the product sets new standards and further reduces the cost of electricity generation. This is a clear competitive advantage, especially in the growing segment of decentralized solar energy. In addition, over 60% of deliveries come from international business, which emphasizes global diversification and relative independence from individual markets. Production capacities are being continuously expanded.

For investors, the situation remains a nail-biting affair. The upcoming quarterly figures in November will be analyzed closely to see whether the Company can initiate an operational turnaround. The key questions are: Will it succeed in converting high sales volumes into stable profitability and getting production inefficiencies under control? Its technological leadership and favorable valuation could be an argument in its favor in the long term. In the short term, however, uncertainty prevails until the financial health of the giant has clearly recovered. The stock is currently trading at USD 23.42.

The green energy boom offers a variety of opportunities. Nordex is on a clear growth trajectory, supported by a strong increase in orders and stable prices. RE Royalties offers predictable returns and a stable dividend through its diversified royalty model. JinkoSolar, by contrast, is struggling with significant margin pressures despite record sales and technological leadership, and must first achieve an operational turnaround. While Nordex and RE Royalties are benefiting from the green energy trend in different ways, JinkoSolar remains a speculative play on a recovery in profitability that has yet to materialize.