07. May 2021 | 12:30 CET
Nordex, RYU Apparel, Encavis- Big picture and buy signals
When the macro environment on the stock exchanges, including the sector situation, is stable or positive and individual stocks with intact growth prospects correct sharply, good opportunities can open up. If, in addition, the fundamental data fit and the chart technique does not contradict itself, the ingredients for a successful trade are present. We present three companies where an entry currently appears very tempting.
time to read: 3 minutes by Carsten Mainitz
NORDEX SE - Order backlog declining at a high level
In the last five weeks, NORDEX stock has corrected from EUR 28 to currently EUR 20, giving the MDAX group a market capitalization of EUR 2.3 billion. Outside China, the NORDEX Group is one of the TOP 5 onshore wind turbine manufacturers operating worldwide. The Group has been active in the market for over 30 years and has installed more than 32 GW of wind power capacity in over 40 markets. In 2020, the Company generated sales of approximately EUR 4.65 billion with around 8,500 employees.
For 2021, an increase in sales to EUR 4.7 to 5.2 billion is envisaged. The operating margin (EBITDA) is expected to increase significantly to 4.0 to 5.5%. For 2022, the bar has been raised again with sales of around EUR 5 billion and an EBITDA margin of 8%. In addition to an increase in new business, the expected growth will be based on efficiency improvements and optimization of the supply chain.
The Group reports new orders almost every week. In mid-April, the Group published its order intake for the first quarter. In total, orders for 279 wind turbines with a rated output of 1,247 megawatts were received in the first three months of the current fiscal year. A year earlier, the figure was 1,644 MW. This decline disappointed some market participants. 92% of the order backlog came from 10 European countries. The largest individual markets were Spain, Turkey, Germany and Finland. Following the recent change in US energy policy, Nordex may be able to grab a bigger piece of the pie overseas in the future. The northern Germans will present their Q1 report on May 11.
RYU APPAREL INC - Bargain
Half a year ago, the stock market called for a price of CAD 0.12 per RYU share. The price rallied sharply to CAD 0.25 by early March 2021 but corrected very sharply in recent weeks to the current level of CAD 0.08. What happened? In a nutshell, a lot of good things operationally.
The Canadian "athleisure" Company publishes plenty of good corporate news. It is a fact that in order to grow, the Company has to tap the capital market at regular intervals. Several capital increases have been carried out in the recent past. A convertible bond financing of a considerable CAD 10 million with an annual interest rate of 7% is available for investors - the conversion price is CAD 0.35 per share.
The manufacturer of modern and high-quality sports and functional clothing worn in everyday life announced in the first quarter that it intends to acquire Kosan Travel Apparel (not listed on the stock exchange), also based in Vancouver. RYU has big plans and wants nothing less than to rise to the top of e-commerce in the athleisure and lifestyle market. Acquisitions such as that of Kosan, in which existing e-commerce brands with loyal customers are brought in synergistically, serve this purpose. The advantages are clear: not only is growth increased, but central cost structures are also reduced. It should also not be underestimated that special talents and marketing opportunities can be acquired in this way.
In the past few months, RYU has strengthened itself with many industry talents. The Company wants to revolutionize the athleisure industry and the emerging sub-category of travel clothing in many ways: Design, quality, innovation and customer experience are particular focus areas. At the current level of CAD 0.08, the stock is an absolute bargain.
ENCAVIS AG - Share has corrected significantly
A sharp correction has been recorded in the Encavis share. In the first quarter, the shares of the producer of electricity from renewable energies were still quoted at EUR 25 but are currently quoted at just under EUR 15. As one of the leading independent power producers, the Group acquires and operates solar parks and onshore wind farms in 10 European countries. The sustainable power generation plants generate stable earnings through guaranteed feed-in tariffs or long-term power purchase agreements. Total generation capacity is currently around 2.8 gigawatts (GW). Encavis generally invests conservatively. Exposure is only made to solar and wind farms under construction, turnkey or already in operation.
In 2020, the Group showed strong operational growth and exceeded the forecast in terms of all key performance indicators. In the past fiscal year, the Hamburg-based Company increased electricity production by 29% from around 2.66 terawatt-hours (TWh) to 3.43 TWh. This increase was primarily based on the acquisition of wind and solar farms. Encavis will publish its first quarter figures on May 14. A distribution of EUR 0.28 will be proposed to shareholders at the upcoming Annual General Meeting. The Company is thus consistently continuing its shareholder-friendly distribution policy.