March 9th, 2023 | 10:58 CET
Innovations for millions: Volkswagen, JinkoSolar, Meta Materials
If a company is ahead of the competition, its business runs all by itself. Large companies invest billions to set themselves apart from the market. But the structure of corporations too often puts the brakes on visionary projects. Fortunately, there are smaller companies that are wholly committed to new technology. We present three companies and explain which could soon become the focus of the big players.
time to read: 3 minutes
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Author:
Nico Popp
ISIN:
VOLKSWAGEN AG ST O.N. | DE0007664005 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , Meta Materials Inc. | US59134N1046
Table of contents:
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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Volkswagen: Thousands of patents, but where is the bright idea?
Thanks to good business and an early focus on electromobility and sustainability, Volkswagen's profits are bubbling up - most recently, surpluses climbed by around 25%. Volkswagen now invests around EUR 18 billion in innovations every year. In October 2020, Volkswagen held almost 15,000 patents. But what makes cars better bit by bit does not necessarily initiate a technological revolution. When it comes to attacking electric top dogs like Tesla or BYD, Volkswagen has, so far, left a lot to be desired.
JinkoSolar: Even technology leaders have to be innovative
JinkoSolar is also considered particularly innovative. The Chinese specialist for photovoltaic systems impresses above all with low prices and high quality. Years ago, modules from Germany were still considered to be of high quality. But the Chinese first copied and then got better and better. Today, JinkoSolar is well-positioned to survive in the competitive market for PV modules. Analysts also see it that way: On average, analysts see around 19% price potential measured against the current share price. As early as 2022, JinkoSolar benefited from the increased demand for PV modules and significantly increased profits by 158%. However, observers also have growing competition and cost pressure at the back of their minds at JinkoSolar. Only if the Company remains innovative can it maintain its current market position.
The examples of Volkswagen and JinkoSolar show that even global market leaders and proven giant corporations must stay on the ball to maintain their market position. Above all, technological revolutions are relatively rare in corporate structures - many of VW's patents probably still relate to classic passenger cars, as we have known them for decades. This is another reason why large industrial companies have to buy innovative startups occasionally or enter into certain cooperative ventures. A sought-after cooperation partner is Meta Materials, a company listed on Nasdaq.
Meta Materials as a jack-of-all-trades: E-cars, medical technology, solar cells
The US company works with Boeing, Samsung, Airbus, Mazda and Covestro, among others. Meta Materials' focus is on ultra-thin coatings. This so-called metamaterial has physical properties that do not exist in nature. They can be used, for example, to create ultra-thin 5G antennas in window panes, reflectors for mobile phone signals in house facades and windows, or invisible displays in car windshields. Metamaterials can also be used in battery technology: For example, the Company of the same name wants to use ultra-thin films coated with copper or aluminium to save weight in lithium-ion batteries.
Other projects that Meta Materials is working on revolve around coatings for better vision, solutions for data glasses and augmented reality or medical applications such as sensors and diagnostic devices. In total, Meta Materials holds 292 patents. The share is also considered a future investment. In the summer of 2021, the value multiplied within a few days in the wake of overbearing tech speculation and a short squeeze. Since then, the value has been trending sideways, although the Company can constantly report new developments. The share is a classic growth stock - the market is still cautious concerning possible commercialization. However, as soon as the sentiment around growth stocks changes, Meta Materials, a well-known Nasdaq stock, should also pick up again. Even a pause in interest rates by the major central banks could boost growth stocks again.
Tailwinds for companies like Meta Materials could also come from established industrial companies. The tech stock's business could be a good fit for companies in the chemical sector, for example, which are looking to divest energy-intensive areas. Companies like VW or JinkoSolar depend on innovations to maintain their market position. Even if growth stocks are not in focus at the moment, they have perspective. Meta Materials touches numerous industries and offers something new with its technology. Sometimes it takes time for innovations to become established. It can be worthwhile for investors, in particular, to get a foot in the door with Meta Materials or at least to follow the stock closely.
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.
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