JinkoSolar, Altech Advanced Materials, Nio – The comeback of renewable energies

JinkoSolar – Towards the sun

One of the standout stocks of the past few weeks has been the solar module manufacturer JinkoSolar. In addition to the economic stimulus measures taken by the Chinese government, the Fed's significant interest rate cut and the prospect of a further easing of monetary policy also played into the cards. This should make investments in renewable energies more cost-effective and thus more attractive again.

Investors took advantage of the double tailwind to add the global market leader to their portfolios at a significant discount. Since its all-time high on October 19, 2020, the stock dropped by 82% to a low of USD 16.70 in mid-October. However, buoyed by the mentioned measures, the stock has since rebounded by 80% to USD 29.94.

The major upward move could still be ahead. With the sustained overcoming of the prominent horizontal resistance at USD 38.65, the bottom formation could be completed. The next target would then be at the downward trend established in October 2020, currently at USD 58.83.

The relative strength index (RSI) and the trend-following MACD have been signaling the turnaround for months through the formation of positive divergences. After the initial push, these indicators gave buy signals at a low level. The RSI, currently at a neutral 63.50, still has room to move before reaching overbought territory.

Altech Advanced Materials – Comeback in sight

Although the fundamental development was positive, the shares of the battery and energy storage innovator were unable to escape the negative market trend. For speculative investors, this presents an opportunity to participate in the "Made in Germany" innovator in the field of energy storage at a level of EUR 2.66.

In a joint venture with the Fraunhofer Institute for Ceramic Technologies and Systems, Altech Advanced Materials is developing a battery that has enormous advantages over conventional products. The CERENERGY® technology has the potential to revolutionize the market for stationary grid storage in large-scale plants such as wind and solar parks.

CERENERGY® batteries are fire and explosion-proof, have a lifespan of more than 15 years and work in extremely cold and hot climates. The battery technology uses common salt and small amounts of nickel. Neither lithium, cobalt, graphite, nor copper are used. According to Fraunhofer, the manufacturing costs of CERENERGY® batteries are also around 40% lower than those of comparable lithium-ion batteries.

The Company recently announced a significant milestone. Altech Advanced Materials announced that its operating company, Altech Batteries GmbH, has signed a memorandum of understanding with Zweckverband Industriepark Schwarze Pumpe (ZISP) for the supply of CERENERGY® battery packs. Under this non-binding letter of intent, ZISP will purchase 30 MWh of energy storage capacity annually, consisting of 30 units of 1 MWh GridPacks, from 2027 for an initial period of five years.

To finance the CERENERGY® project in the joint venture Altech Batteries GmbH and the second project, Silumina Anodes™, fresh money of EUR 3.5 million is to be collected in a capital increase from authorized capital. Up to 1,460,500 shares are to be issued at a price of EUR 2.40.

Nio – Picking up speed

Similarly to JinkoSolar, the Chinese electric carmaker Nio was also able to benefit from the government's promised economic stimulus package. Chart-wise, the stock made a textbook comeback after forming a double bottom at USD 3.61 and has since doubled to USD 6.77 on the trading floor.

However, after the rally of the past few weeks, the stock is overbought in the short term and could offer an entry opportunity after a pullback to the upward trend that has been in place since August 2024 at the current level of USD 5.83.

In September, Nio sold 21,181 vehicles, an increase of 12% year-on-year in the third quarter. Together with other Chinese carmakers such as Li Auto and XPeng, Nio had the most successful month in its history.

Behind the scenes, Nio continues to work on its expansion strategy and the extension of its product range. Deliveries of the Onvo L60 Electric SUV have started. Analysts expect the Company to remain in the red this financial year, but the turnaround is expected to be achieved next year.

The Chinese government's announced economic stimulus package is boosting companies such as electric vehicle manufacturer Nio and solar module manufacturer JinkoSolar. Altech Advanced Materials also reported a significant milestone.