02. September 2021 | 12:58 CET
Nordex, Talkpool, HeidelbergCement: Construction goes green and digital - Investors profit
Do you know what all electrical appliances have in common? They have become smaller and smaller over the years. Advances in electrical engineering and digitization have ensured that even complex devices have become smaller and smaller while at the same time being powerful and more energy-efficient. As a result, numerous possibilities have opened up - for example, in the area of the Internet of Things. The interplay of sensors and small electronic devices offers users new possibilities, saves money, and protects the environment. We present three titles on the topics of the Internet of Things and environmental protection.
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ISIN: NORDEX SE O.N. | DE000A0D6554 , Talkpool AG | CH0322161768 , HEIDELBERGCEMENT AG O.N. | DE0006047004
Nordex: Sensors help save
Wind turbine manufacturer Nordex is a familiar name on the trading floor. But the Company and its products have undergone an evolution. Years ago, people were not quite sure about wind energy, but today the solutions from Nordex are part of the energy mix as a matter of course. In order to maintain complex turbines, which are often installed offshore, smart solutions are essential. If sensors make it unnecessary for technicians to make the arduous and expensive journey to a wind turbine, a lot has already been achieved. If sensors continuously collect data and "think for themselves," that is the jackpot for a company like Nordex. For example, Nordex relies on sensors that can detect and report icing on wind turbines. Then heating elements kick in, guarantee operation and prevent worse.
Sensors and the digital evaluation of usage data can also help store electricity or feed it into the grid at a later stage. Nordex has suffered a bit on the stock market over the past three months. The market does not seem to like the low profitability. However, the order books are full, and the Company is well-positioned in a promising sector. Investors should nevertheless wait for a bottom to form.
Talkpool: Green technology boosts margins
One company that aims to successfully bring together the topics of the Internet of Things and sustainability is the Swiss Talkpool Group. Talkpool offers various solutions around climate protection and energy-saving and takes an intelligent approach throughout: Sensors monitor the indoor climate, for example, and help improve air quality and reduce water and energy consumption. Talkpool also offers solutions for detecting water damage to buildings at an early stage. In this way, significant damage can usually be avoided. Studies show that digital design and construction are on the rise - as a survey by PwC shows, 79% of construction companies want to use these innovative methods. But only less than 20% already have a strategy for implementing this step. Although digital processes in construction do not yet mean the use of smart products, the associated revolution is likely to significantly increase the willingness to break new ground with sensors and other equipment. Last but not least, climate protection is in vogue and many building owners want a smart home.
In addition to building solutions, Talkpool also focuses on making cell towers more climate and environmentally friendly. To this end, Talkpool is using a new type of anchoring system that uses less concrete. The Company is also working on better integrating the masts, often perceived as visually disturbing, into the environment. Around 5G, the demand for radio masts and their sustainable use is likely to increase. Talkpool's shares have only been listed on a German stock exchange for a few months and usually trade in Sweden. There, the share price has moved sideways over the past few months, although the Company has been growing successfully for some time. Sales climbed by 28% in the second quarter and the margin also increased significantly from 3.7 to 6.1%. The response of potential customers to Talkpool's solutions is also said to be positive. Investors should keep the stock on their radar. It is quite possible that the share price will also pick up soon.
HeidelbergCement: Why an app?
One share that can also benefit from the construction boom is HeidelbergCement. The Company focuses on building materials and, at first glance, has little to do with digital solutions. But this impression is deceptive: With the OnSite app, the Company has presented a solution intended to better connect construction companies and architects in the future. The goal: more efficient processes, fewer errors, more time, lower costs. This digital fantasy has not yet infected the share - over three months the value has lost 1.4%. That it will ever get that far is also rather unlikely. Cement and concrete still play the leading role at HeidelbergCement, accounting for more than 80% of sales.
HeidelbergCement clearly shows where the direction in construction is heading: Construction is becoming more digital. Providers of regenerative solutions, such as Nordex, are also focusing on sensors and innovative data analysis. However, stocks like Talkpool could be more attractive for investors: Here, low valuations and a business that seems to be really taking off is enticing.