April 1st, 2022 | 12:54 CEST
Plug Power, Perimeter Medical Imaging AI, JinkoSolar - Shares for the future
Table of contents:
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Plug Power - Sentiment positive across the board
Gloom returned to the hydrogen market after the hype around hydrogen in 2020 to early 2021. Several stocks gave back a large part of their gains, as hydrogen was too expensive for a market breakthrough. Due to the Ukraine crisis, the signs are more favorable for hydrogen once again. Decarbonization must proceed faster than originally planned. Green hydrogen could be the alternative in places where it is not so easy to implement with electricity. Plug Power is the top dog in the hydrogen market, targeting between USD 900 million and USD 925 million in sales this year alone.
In 2020, it was only USD 502 million, so you can already see a trend here. In the hydrogen fuel cell sector, Plug Power is well-positioned as a first mover and should benefit from the subsidies that now exist in many countries. Even China wants to produce 200,000 tons of green hydrogen per year by 2025. The EU wants to boost hydrogen production to 25 gigawatts by 2030. Plug Power CEO Andy Marsh has recently been on the road in Europe, making contacts. What doors this will open remains to be seen.
According to some estimates, the demand for electrolyzers will soon no longer be met by the supply. These analyses see demand at 400 gigawatts by 2030, but supply is said to be only about 80 gigawatts. Most analysts view the stock as a buy. The price targets range up to USD 60. The share is currently trading at USD 28.39 and has formed an initial upward trend, which would only be broken at prices below USD 21.27.
Perimeter Medical Imaging AI - Study of new B-Series underway
Nowadays, breast cancer is the most common type of cancer. The tumor is removed in surgery and the tissue sample is then sent to the laboratory, where it is examined to see whether there are further tumor cells at the edges. If this is the case, a second operation must be performed. Canadian medical technology company Perimeter Medical Imaging AI aims to revolutionize this procedure by providing surgeons with an optical coherence tomography imaging system that allows them to examine the cross-sections and margins of the removed tissue in real-time. In the event of abnormalities, more affected tissue can be removed directly, thus avoiding further surgery while improving the chances of recovery.
The 510(k) approval of the FDA (Food and Drug Administration) for the Perimeter S-Series in the USA, which was obtained in 2021, can be regarded as a milestone. As a result, the first devices could be placed commercially in hospitals. The next expansion stage is to work on the Perimeter B-Series with Imaging AI. This device can then use artificial intelligence to analyze the removed tissue and provide a second independent opinion to the surgeon. The FDA has granted the B-Series a Breakthrough Device Designation. A multicenter, randomized, two-arm clinical trial of B-Series has already begun and is expected to be completed with at least 300 patients by the end of 2022.
If the trials are successful, the technology may be used in other cancers. The Company has built what it calls the Atlas image library, a broad-based tissue library of pathologically verified tissue structure correlations. It can be used to train artificial intelligence. After the private placement was announced in December, which brought in 48.7 million Canadian dollars (CAD), the stock went downhill to CAD 2.20. Since March 8, however, the share has been on the rise and is trying to resume its upward trend. Currently, the share price is at CAD 2.81, which is below the price of CAD 3 of the financing.
JinkoSolar - Decent year 2021
Electricity is becoming more and more expensive in Germany. Those who want to protect themselves against this will hardly be able to avoid installing a solar roof in the future. One of the largest solar panel manufacturers globally is JinkoSolar, and it will benefit from this trend. The Group is actively designing, developing, producing, and marketing photovoltaic products with its subsidiaries. The Company offers solar modules, silicon wafers, solar cells, recovered silicon materials, silicon blocks, and solar system integration services. It also plans and implements commercial solar energy projects.
Despite supply shortages and the Corona pandemic, the Group presented a decent 2021 financial statement. Sales increased by 16.2% to around EUR 5.8 billion. At EUR 102.4 million, corporate profit was more than twice as high as in 2020. The final quarter ran strong overall, as evidenced by the sales growth of around 74% and a doubling of gross profit. The Group shipped a total of 25,242 megawatts. In addition, subsidiary Jiangxi Jinko made its stock market debut on the Shanghai Stock Exchange this year. As a result, around EUR 1.4 billion was flushed into the coffers.
Margins are the Company's Achilles' heel, as raw material costs also rose significantly last year. Most recently, Blackrock CEO Larry Fink positively commented on the solar sector. Unlike wind power, solar is much easier to expand. The share has successfully tested the support at USD 37.50 several times and is currently quoted at USD 49.88. The value moves sideways in a wide range between USD 35.41 and USD 57.74.
The future holds new technologies that are difficult for us to imagine today. Hydrogen is a future market just as soon as the price of hydrogen can be lowered. Then Plug Power will benefit accordingly from its position. Perimeter Medical Imaging AI provides an innovative real-time analysis platform for surgery in the fight against cancer, which could become the new gold standard in treatment. JinkoSolar is benefiting from rising electricity prices and the ever-increasing demand for electricity. Every roof will likely be used to generate electricity in the future.
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