09. July 2021 | 13:21 CET
JinkoSolar, dynaCERT, Vestas - Who is the best Cleantech investment?
Current extreme heat of up to 50 °C in North America, arctic temperatures here in southern Germany still in April: The weather is going crazy, and humankind does not seem to be entirely innocent if leading global climate researchers are to be believed. Thus the climatic warming caused by human industrialization seems to have extraordinarily rapid and powerful effects. Now that more sensible people are finally back in control of the levers of power in crucial countries, agreements on necessary immediate measures will be reached more quickly. The decarbonization of industry is one of the most important building blocks that should be addressed with many different Cleantech solutions. We present three stories with extremely promising approaches and corresponding share price potential.
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ISIN: JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , DYNACERT INC. | CA26780A1084 , VESTAS WIND SYST. NAM.DK1 | DK0010268606
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
JinkoSolar - The share price recovery is underway
The Chinese solar panel manufacturer JinkoSolar, with its 23 production facilities spread around the globe, is not only one of the world's largest in its industry but also one of the most innovative. JinkoSolar recently announced that they were the first manufacturer to mass-produce a solar panel with an efficiency of around 25%. Just imagine how much energy the global fusion reactor, the sun, sends to earth every day. This energy can now be captured and converted 25% - you don't have to be a mathematician or engineer to understand that this is one of the greatest future technologies and methods for clean electricity production.
The stock market seems to see it similarly. Cleantech shares were massively affected by a wave of consolidation at the beginning of the year, partly due to rising raw material prices. JinkoSolar lost more than 50% of its share price at that time - the share price has been doing quite well again since the beginning of May, apart from a few profit takings. The stock has gained over 60% in the last two months and has climbed to around 75% of its pre-crash level. The better-than-expected quarterly results announced in June, as well as the announcement of an IPO of subsidiary Jiangxi Jinko in the Star Market on the Shanghai Stock Exchange, should be good for further gains.
dynaCERT - Hydrogen specialist with innovative bridging technology
If mankind still wants to stop industrial climate change, it has to hurry up. According to the Intergovernmental Panel on Climate Change, global CO2 emissions would have to be reduced by 40 to 70% by 2050 at the latest to avert a 2°C temperature rise limit, which is generally regarded as the point of no return. One thing is clear: electromobility is only in its infancy; in heavy-duty road transport, heavy machinery such as tunnel boring machines, cranes or even aircraft, and in maritime transport.
For this reason, the technology of the Canadian hydrogen specialist dynaCERT also applies to conventional diesel drives. These are optimized by injecting a small amount of hydrogen so that CO2 emissions are reduced by a full 19% - without any loss of performance. The amount of hydrogen required is so small that it can be produced on-demand directly in the vehicle using a mobile electrolyzer called HydraGEN. Using the in-house telematics solution HydraLytica, the emission savings can also be documented in compliance with the law. It is necessary to do this in order to obtain digital certificates for the CO2 saved, which can be monetized on appropriate exchanges.
This setup has already been tested in several pilot projects, and a proof-of-concept has been created. But even if this technology is a perfect recipe for the rapid reduction of the climate killer carbon dioxide, dynaCERT does not want to rest on its laurels; on the contrary, the Company is looking for new challenges. A few days ago, dynaCERT announced a strategic alliance with Galaxy Power, another Canadian-based company. In cooperation with the Company, new hydrogen-based technologies will be developed to keep Canada at the forefront of hydrogen technology. The Company emphasized that the cooperation does not include dynaCERT's existing business areas but will only join forces in additional business areas.
The whole thing sounds like an exciting story to us. The technology is mature and easy to integrate into existing drive systems. Right from the start, around 20% of the resulting CO2 emissions can be avoided. It doesn't take much imagination to expect that such Cleantech technology could become mandatory for all diesel vehicles in the foreseeable future, similar to a particulate filter, given the ambitious targets set by politicians.
Vestas Wind Systems A/S - Full order books ensure a good mood
In Hamburg, they say "Bye Bye" - Unfortunately, we do not know whether this popular song is also known in Denmark. But they must have thought something similar at the headquarters of the Danish wind power specialist if they had followed the share price of the Hanseatic competitor Nordex SE in recent weeks. Since the announcement of a massive capital increase through 2.7 million new shares at EUR 13.70 each, it has suffered a double-digit price loss relatively quickly and has repeatedly tested the long-term low of EUR 17 in recent times. And this despite a continuous order intake. In the second quarter, the pipeline's capacity increased by 1,534 MW, almost double the figure for the same period of the previous year.
Aarhus is not familiar with such problems. In the second quarter, the Company was able to collect orders with a volume of more than 2,000 MW. After the general consolidation in March, the share price has climbed again and is currently around DKK 250. Good news, which should lead to a continuation of the positive share price performance. Last Friday, the Group announced that it would cooperate in the future with the world's leading offshore wind farm operator Ørsted, also from Denmark, on an onshore project in Ireland. That is significant because Ørsted still relies on GE turbines for its projects.
So this cooperation makes sense for both: Ørsted strengthens its position in onshore turbines, and Vestas has a new customer for its turbines. In this respect, Ireland could turn out to be a pilot project that stands for even fuller order books for both in the future. Analysts like the story and are issuing price targets of up to EUR 50. Moreover, industry experts currently consider Vestas to be the best wind power stock for long-term investors.
The extreme weather everywhere clarifies that climate protection through Cleantech is the order of the day. Which technology or company size someone invests in depends on their investment style. Vestas is certainly the stock for the conservative investor who is betting on a long-term positive share price development. dynaCERT so far has a manageable customer base but excellent growth potential. JinkoSolar has equally great prospects for success, but the Chinese jurisdiction could lead to a rude awakening.