October 6th, 2023 | 07:20 CEST
Nordex, dynaCERT, SMA Solar - Future Industries on Sale
Companies in the renewable energy sector have been in a sharp correction for months. Whether wind, hydrogen or solar, share price losses of over 50% for market leaders such as Plug Power or Nel Asa have not been an isolated case since the beginning of the year. Nevertheless, the future looks promising in these areas, as sharp price setbacks often represent unique long-term buying opportunities.
time to read: 3 minutes | Author: Stefan Feulner
ISIN: NORDEX SE O.N. | DE000A0D6554 , DYNACERT INC. | CA26780A1084 , SMA SOLAR TECHNOL.AG | DE000A0DJ6J9
Table of contents:
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Nordex - Order fizzles out
The order situation at the Hamburg-based wind turbine manufacturer continues to improve, yet the curve on the stock chart continues to point south due to the negative market conditions. After an interim high at the beginning of the week, Nordex shares were sold off with high turnover to a level of EUR 9.90, marking a new low for the year. As a result, the stock fell below the critical EUR 10 support level. The next support currently lies at a level of around EUR 9.35.
Nordex received another order from Spain. Enerfin, the renewable energy subsidiary of the Elecnor Group, one of Spain's leading engineering and construction groups, placed an order for 45 MW in Spain with the Nordex Group at the end of September. The order is accompanied by a service contract for the turbines with a term of 20 years. The Elecnor Group is one of the leading companies in Spain's mechanical engineering and construction sector. The "Cernégula" project represents Enerfin's second order for the Nordex Group, following on from the 256 MW Sao Fernando cluster project in Brazil in 2020 and 2021.
dynaCERT - Positive signals
The share of the Canadian hydrogen specialist dynaCERT has also suffered, with a decline of approximately 36% since the beginning of the year. The current price of CAD 0.125 also marks a new annual low. The Company, led by Jim Payne, is currently engaged in promising discussions with major customers. Several of these discussions with major customers have been positive, which could potentially lead to new orders in the near future.
The HG2R series, an engine with a capacity of between 1 and 8 liters, which is used in particular in small and heavy commercial vehicles, currently shows the greatest potential in terms of sales figures. Current retail prices in Europe excluding VAT for an HG1R are EUR 6,500.00 and for an HG2 with 12 volts EUR 4,650.00 and with 24 volts EUR 4,800.00. The Company estimates worldwide sales potential at about 135 million units.
Meanwhile, the HG-4C series is attracting interest from major mining manufacturers. This series has been specifically designed for diesel engines with a displacement of 40 to 60 liters and is mainly used in heavy-duty vehicles in the mining industry. While further order announcements are anticipated, investors are also waiting for the final approval of the Verified Carbon Standard program by Verra, the most widely used program globally for greenhouse gas accounting.
SMA Solar - Significant jump in share price
Bucking the negative trend with a share price gain of around 11.50% to EUR 62.10, the SMA Solar share performed well and was able to move back into positive territory with the strong increase since the beginning of the year. After the Company raised its annual forecast, Deutsche Bank Research continues to see a price potential of up to EUR 85. However, analyst Mengxian Sun warns against too much euphoria on the part of investors, even though one of the world's top-selling manufacturers of inverters for photovoltaic systems with grid feed-in and off-grid feed-in from Niesetal in northern Hesse has raised its forecasts for the third time this year. As orders were presumably processed more quickly in the third quarter, this could merely be a case of sales and profits being brought forward from the subsequent quarters to the third quarter. While this could positively impact earnings in the current year, it could weaken the outlook for 2024.
SMA Solar has published preliminary figures for the first nine months of 2023, showing a significant increase in consolidated sales. Compared to the previous year, when the Company generated EUR 724 million, there is a significant increase in sales of between EUR 1.335 billion and EUR 1.345 billion. Similarly, earnings before interest, taxes, depreciation and amortization increased more than fourfold to between EUR 230 million and EUR 235 million, compared with EUR 50 million in the same period of the previous year.
Given the positive development, the Managing Board of SMA Solar has raised the forecast range for the full year 2023. Consolidated sales of between EUR 1.80 billion and EUR 1.90 billion and EBITDA of between EUR 285 million and EUR 325 million are now expected.
For months, shares from the wind, solar and hydrogen sectors have been in a sharp correction and marked new annual lows on a large scale. Given the positive prospects and political support, this could present a promising long-term entry opportunity.
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