June 3rd, 2021 | 11:02 CEST
JinkoSolar, BYD, SunMirror: Rich thanks to climate protection
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"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
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.
JinkoSolar: Quality prevails
Good business is also in store for the Chinese solar module manufacturer JinkoSolar. The Company recently reported a 25% yield for one of its modules - a world record. JinkoSolar also scores in terms of longevity. The German testing Company DEKRA has issued a certificate to the double-glass module Tiger Pro, attesting to the module's longevity even under challenging conditions. With high performance and quality, the signs are good that JinkoSolar will maintain and expand its already very good market position.
Such a perspective is also noticeable on the market: In the past five trading days alone, the JinkoSolar share climbed by almost 20%. Although there is still a loss of around 30% on a three-month horizon, this must be seen in the context of the long-term upward trend. In one year, the share has gained more than 120%. JinkoSolar is considered the world market leader in solar modules. Since many investments in renewable energies are expected in the coming years, including a solar obligation for new buildings in Germany, the business of the Chinese should continue to boom for a long time.
The share is preparing to leave the medium-term downward trend. However, it is not yet possible to foresee where the journey will lead.
BYD: Where is the journey heading?
The outlook for BYD is also somewhat opaque. The Chinese are already very well positioned in the manufacture of batteries for electric cars and their production. BYD also has its semiconductor division, which helps the Company in the short term - after all, chips are in short supply right now. In the long term, BYD's chip division also arouses imagination, especially concerning autonomous driving and the growing importance of sensor technology and networking in the automotive industry. But what is the stock doing?
Over the past five days, the stock has posted double-digit gains. BYD is thus preparing to leave the weak phase of the past months behind. The Company announced the IPO of its chip division but simultaneously told that it wants to retain control. This move was received very positively by the market, as BYD is raising capital in this way without giving up its own chip manufacturing advantages. The Company is well-positioned for the long term. However, there is one downside: Even the Chinese find brands such as Volkswagen more attractive, so whether BYD will become a major carmaker in the long term and globally is not yet clear.
SunMirrror: Many critical metals in just one Company
Regardless of what happens with BYD or JinkoSolar in the long term, the Swiss Company SunMirror is ideally placed to profit from renewable energy and electromobility developments. SunMirror has focused on the development of raw material projects that are essential for these future technologies: Lithium, tin, nickel, iron ore and also gold. SunMirror operates in Australia and is advancing its three projects there step by step. The analysts of Sphene Capital attest the share potential of up to EUR 174.30.
In the long term, the share could go even further up: SunMirror recently successfully raised EUR 10 million through a convertible bond. This capital could also flow into new projects. The thrust of the Swiss is promising: critical metals are in demand, and the need for these metals is even more likely to increase in the coming years. Globally, climate protection is a major issue, and the USA, a powerful player, has now even become the spearhead in the fight against climate change. More consistent climate targets are, therefore, very likely. The beneficiaries will be innovative companies with good products and commodity companies, such as SunMirror.
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