June 14th, 2023 | 08:10 CEST
Hydrogen picks up - Where profits lurk: ThyssenKrupp, JinkoSolar, Manuka Resources
The hydrogen business is picking up speed worldwide. ThyssenKrupp plans to float its hydrogen subsidiary Nucera on the stock market before the summer break. This announcement is positive for the entire industry, as it indicates that ThyssenKrupp and the banks involved think the market is stable enough to get a reasonable price for shares in Nucera. We look at what is behind the IPO, which Greentech stocks are still interesting and which niche investors can profit disproportionately.
time to read: 3 minutes
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Author:
Nico Popp
ISIN:
THYSSENKRUPP AG O.N. | DE0007500001 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , Manuka Resources Limited | AU0000090292
Table of contents:
"[...] Internally we expect the resource to significantly grow the deeper we mine. [...]" Dennis Karp, Executive Chairman, Manuka Resources
Author
Nico Popp
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
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ThyssenKrupp wants to stay with Nucera
ThyssenKrupp plans to raise around EUR 500 to 600 million in the IPO of its hydrogen subsidiary, Nucera. The capital is to come primarily from a capital increase. Both ThyssenKrupp and the Italian minority shareholder, Industrie De Nora, intend to remain on board. The raised capital will be directed towards growth, as Nucera aims to expand its business in alkaline water electrolysis.. The Company wants to produce green hydrogen primarily in Europe and the US and build the corresponding plants. But Asia is also attractive to the young company.
ThyssenKrupp currently holds 66% of Nucera. It can be assumed that the steel group will continue to hold a majority after the IPO. Since the steel business is not doing so well at the moment, the IPO of the hydrogen subsidiary could boost its growth and create value for ThyssenKrupp in the long term. In addition, hydrogen could also play an increasingly important role in steel production in the future. The ThyssenKrupp share has been moving sideways for about a year. Recently a recovery has become apparent. If the spectre of recession fades, ThyssenKrupp could also take off with its investment in the future, which, thanks to its stock market listing, should then also have a higher value than today. However, the share will no longer be a high-flyer.
JinkoSolar: Cooperation strengthens market position
JinkoSolar, on the other hand, has been a high-flyer in recent years. The manufacturer of photovoltaic panels is the world market leader and impresses with quality and market power. However, the growing geopolitical tensions have hurt the share price in the past year - it fell by almost 30%. The share price is currently lower than it has been for months. At the current level, the stock could find a bottom. Most recently, JinkoSolar entered into a global strategic cooperation with Antaisolar, a leading supplier of products along the entire industrial value chain for PV mounting systems. Such cooperation should help JinkoSolar to maintain its market position even under challenging conditions. Even if the general conditions for the Company are not perfect, especially given the price war in the industry, the share remains a value to keep in mind.
Manuka Resources: Precious metals small cap with huge vanadium potential
Investors should also keep the shares of Manuka Resources in mind. The Company mines precious metals in two mines in Australia and even has its own processing plant there. Exploration is carried out while operations are ongoing, which has resulted in an increase in the resource base despite production. However, a giant vanadium project that Manuka Resources is advancing in New Zealand and which Manuka was only able to acquire about a year ago thanks to long-cultivated business relationships is causing even more fantasy. The project has the potential to produce 15% of the world's vanadium supply. Until now, vanadium has come primarily from China and Russia - two countries from which international companies want to become less dependent.
Vanadium is used in certain types of steel. Furthermore, the element is considered a battery metal. Vanadium redox batteries, for example, are suitable for large-scale energy storage, such as in solar parks. Thanks to its chemical properties, vanadium is also used in the nuclear industry to envelop nuclear fuel. Manuka Resources's share has remained low for months and is a proven penny stock. The Company's precious metals activities alone have already generated cash flows. The gigantic vanadium project covers the entire Greentech sector. The Company offers an exciting mix to invest equally in precious metals and the energy transition. Vanadium demand from the steel industry adds to the mix.
While stocks like ThyssenKrupp or JinkoSolar are attractive due to their market position and holdings but are currently not in vogue, Manuka Resources offers a particularly exciting mix for investors. The Company must be considered speculative due to its early stage, but conversely, it could offer great prospects if successful. The stock is always worth a look for experienced investors on weakness.
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.
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