November 14th, 2022 | 11:41 CET
JinkoSolar, TubeSolar, Nordex - Biden's promise brings tailwind
Table of contents:
JinkoSolar - Strong 3rd quarter figures
JinkoSolar is one of the world's largest solar module manufacturers. In addition to solar products, it also offers services worldwide. China has long been suspected of only copying technology, but this is no longer the case. This can be seen, for example, in the news from October 13, when the Company announced a new efficiency record of 26.1%. As recently as April, the N-type monocrystalline silicon solar cell achieved 25.7% efficiency. The group invests in research and development and is constantly expanding its production.
That this is paying off can be seen in the figures for the 3rd quarter, which the Company presented on October 28. Total revenues were around USD 2.74 billion, up 127.8% YOY. This included 10,286 megawatts (MW) of solar modules and 570 MW of cells and wafers shipped. Here, too, is an increase of around 117%. The gross margin was 15.7%, resulting in a gross profit of about USD 432 million - a good 137% above the previous year. These are excellent figures even though raw material prices have continued to rise and production has been affected by power rationing and earthquakes.
Demand for solar modules remains high. China, in particular, ordered five times more than in the previous year. On average, global demand has doubled. In the wake of this, the Company intends to expand its capacities further. By the end of 2022, production is expected to be 65 gigawatts (GW) of mono wafers, 55 GW of solar cells and 70 GW of solar modules. The stock has gained more than 31% since October 24. This was helped initially by strong quarterly numbers from competitor Enphase Energy. Then the Company itself presented good figures. Demand will remain high. JinkoSolar will undoubtedly benefit from this.
TubeSolar - TÜV certification received
TubeSolar has developed a tube photovoltaic module. With this technology, it is possible to open up new application areas for solar modules. In order to produce solar power on a large scale, more surface is needed than just roofs. The idea is to operate agri-photovoltaics, i.e. to cultivate arable land and produce solar energy on this land. The new tubular modules are much lighter than conventional solar panels and can be installed up to 8m above the ground. In view of climate change, the tubes provide shade for the plants, saving water and protecting them from hail or heavy rain. In addition to farmland, green roofs are also a possible area of application, just like large parking lots.
On October 19, TubeSolar reached a milestone when it was announced that the tube photovoltaic modules had successfully passed the TÜV certification process. Once all documentation is completed, the Company will receive the TÜV seal. This is another sales argument on its side and simultaneously confirms the quality of the product. Series production is currently being set up at the former Osram / Ledvance fluorescent tube plant and should ultimately have a capacity of 250 megawatts (MW). The first tubes are to be produced this year. An initial pilot plant covering an area of one hectare has been built in Hallertau.
Investor funds have recently been raised for financing. A 2% convertible bond for EUR 8 million was recently issued, which matures on November 10, 2026. The conversion price per share is EUR 5.50. In addition, a rights issue is underway, offering 1,882,352 shares at EUR 4.25. The Company already has inquiries for around 300 megawatts, of which 55 MW are about to be signed, and 238 MW are currently under negotiation. So the demand is there. A company presentation from the 4th International Investment Forum can be found on Youtube. The stock is currently trading at EUR 3.94 and is in a consolidation after the downward trend was broken to the upside.
Nordex - Quarterly figures in focus
Today, November 14, Nordex will be in the spotlight, presenting its quarterly figures for the 3rd quarter. This will show whether the Company has a grip on its margin problems. The order intake of 1,441 MW in the third quarter was already announced on October 14. Compared to the previous year, a minus of 388 MW. The largest markets were Brazil and Europe. What stands out in the report is that the average sales price was EUR 0.9 million per megawatt. In the previous year, it was only EUR 0.69 million.
That represents a price increase of over 30%. So the upcoming figures could be a pointer for the future. From October to November 2, 6 orders were won with a total capacity of 512 MW. The orders came from Finland, Poland, Spain, Croatia and Germany. The Company is getting a tailwind from the German government, which has earmarked 2% of the federal territory as land for wind turbines. Now the federal states just have to implement these specifications. Then new orders will beckon for Nordex.
So things are gradually looking up for the Company, which recently had to raise fresh capital several times. In the meantime, the stock has also returned to the SDAX. On October 27, the share broke the downward trend and left Xetra trading at EUR 10.70 on November 11. The next resistance level is EUR 11.10. If this level is broken, there is room to move to EUR 11.85. The latest analysis comes from Jeffries, whose analysts have set the stock at Buy with a price target of EUR 13.00.
The expansion of renewable energies is indispensable if we want to get away from fossil fuels - good conditions for the three presented companies. JinkoSolar is one of the market leaders in the solar industry and will profit accordingly. TubeSolar occupies an entirely new market segment with its photovoltaic tube technology, and this opens up completely new areas of application. With its quarterly figures, Nordex will reveal whether the Company is well-equipped for the future.
Conflict of interest
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