14. October 2021 | 13:30 CET
SMA Solar, dynaCERT, TotalEnergies - Good for the climate, good for your portfolio!
The signs of the times are climate protection: In America, Joe Biden is trying to push his Green New Deal through the legislature, China is phasing out the construction of coal-fired power plants, and in Germany, the Greens will most likely be part of the next government. Industry is also rethinking its position. Recently, an alliance of 69 leading German companies called for an "implementation offensive for climate neutrality" within the first 100 days of a new government. Signatories included heavyweights such as SAP, E.ON and Bayer. The following three stocks should get a tailwind from the new climate awareness.
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ISIN: SMA SOLAR TECHNOL.AG | DE000A0DJ6J9 , DYNACERT INC. | CA26780A1084 , TOTALENERGIES SE | FR0000120271
"[...] We can convert buses and trucks to be completely climate neutral. In doing so, we take a modular and incremental approach. That means we can work with all current vehicle types and respond to new technology and innovation [...]" Dirk Graszt, CEO, Clean Logistics SE
SMA Solar - Clear beneficiary of "green projects" of the German government
Kassel-based solar equipment supplier SMA Solar should be one of the clear beneficiaries of a "green-focused" German government. Two factors play a role here: on the one hand, sales of solar systems would increase significantly with a solar obligation for new roofs or the granting of tax incentives and/or subsidies; on the other hand, Germany is the most important single market for SMA Solar, so changes in demand should be strongly reflected in its order books.
The share has indeed experienced quite a rollercoaster ride in the past twelve months. At times the stock was worth almost twice as much as it is currently. The Group was forced to lower its business forecasts due to the ongoing shortage of electronic components but stressed that the medium-term business outlook was still very good. However, the subsequent price correction was highly exaggerated in the opinion of analysts.
Bankhaus Metzler formulates a price target of EUR 58 for the SMA Solar share and recommends a buy. Industry experts assume that supply bottlenecks in production will slowly ease in the course of summer 2022. With production picking up, the share price of the Hessian company should then also recover significantly. At a share price of EUR 37, the Company has a market capitalization of EUR 1.3 billion. One thing is sure: solar remains one of the most essential pillars of climate change.
dynaCERT - When will the turbo ignition take place?
Shareholders of the Canadian hydrogen pioneer dynaCERT look back wistfully to the beginning of the year when the stock was still trading at its annual high of CAD 0.86. Since then, the share has continuously declined and currently stands at CAD 0.20, valuing the Canadians at just under CAD 80 million. Although other hydrogen stocks have also corrected strongly in the year, there is another problem with dynaCERT: the lack of newsflow.
Apart from reports on the annual general meeting in September, which nodded off all draft resolutions, including the presented personnel carousel, little information on business performance or future developments filtered out. In a recent August interview, CEO Jim Payne said dynaCERT had entered into a dealer agreement with Sparta Group subsidiary TruckSuite Canada Ltd. TruckSuite provides fleet operators with technical tools such as vehicle management systems and a document management portal. In terms of co-branding, the dynaCERT HydraGEN technology for increasing the efficiency of diesel engines by injecting hydrogen produced through portable hydrolyzers and the HydraLYTICA telematics solution developed for this purpose are to be publicized and distributed in the future. As a first step, TruckSuite ordered 150 dynaCERT HG1 systems at that time.
The start of CO2 certificate trading could provide significant impetus. As soon as the CO2 savings determined utilizing the HydraLYTICA solution can be converted into tradable certificates, this should be a clear buying argument for fleet operators in favor of the solution from dynaCERT because then there is a massive savings potential for the companies. The fact that the technology works has been proven several times by dynaCERT in various pilot projects - for example, in cooperation with the city of Woodstock in Ontario, Canada, and as a member of the "Hydrogen Strategy Working Group" of the same state. The analysts at GBC Research are convinced by the technology and currently see a price target of CAD 1.87 for dynaCERT.
TotalEnergies -Investing in the Future
TotalEnergies is still one of the world's leading petroleum producers but is gradually moving away from fossil fuels and is currently meticulously planning the transition to sustainable energy sources. In 2020 the Group began its entry into the wind energy sector by investing in various wind farm projects in Europe and Asia, and by 2021 wind farm generation capacity had already reached 3.5 GW. The Group is also active in the solar sector. More than 100 MW have already been implemented in Asia for companies such as Danone, Renault-Nissan and Betagro. Energy production of TotalEnergies amounted to around 12 GW at the end of 2020, 7 GW of which came from renewable energies.
The French Group is also very active in the hydrogen sector. It recently announced a partnership with AirLiquide. In the future, the Company will feed the 255 tons of hydrogen produced daily at the Normandie site into its distribution network, thus contributing to the decarbonization of the production site. Overall, TotalEnergies plans to ramp up production of its energy output by 30% by 2030. Half of this increase is to be achieved by expanding power generation in solar and wind farms and increasing the LNG share (liquefied natural gas). The Group is thus also likely to be one of the beneficiaries of the political course set for greater climate protection. The majority of analysts recommend buying the high-dividend share with an average price potential of 13%.
The biggest player among the three shares mentioned is TotalEnergies. In addition, a handsome dividend also beckons here. SMA Solar should also profit in the long term; significant impulses are realistic with overcoming supply bottlenecks for electronic components. The most speculative stock, which also promises the greatest profit potential, is dynaCERT. The technology has been tried and tested and will undoubtedly be attractive to many players - as soon as the CO2 savings documented in certificates can be traded.