November 28th, 2023 | 06:45 CET
ThyssenKrupp Nucera, Altech Advanced Materials, JinkoSolar - Green returns in focus
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"[...] Boron is one of the most versatile elements in the whole world! Everyone reading this text regularly uses hundreds of products that depend on boron. [...]" Tim Daniels, CEO, Erin Ventures
ThyssenKrupp Nucera - Positive EBIT
Hydrogen is a crucial part of the GreenTech approach as it can be used as an energy carrier to generate clean energy. Ideally, renewable energy sources are used to produce hydrogen. Many Western governments support the transition to renewable energy. Despite this support, the well-known hydrogen companies have not yet managed to operate profitably. Most recently, Plug Power's announcement caused a slide in the share prices of many hydrogen companies. ThyssenKrupp Nucera lost some ground the day after Plug Power's quarterly figures but was then able to reverse the trend.
On November 21, the Company published preliminary figures for the fourth quarter. For fiscal year 2022/23, the chlor-alkali (CA) business recorded a record order intake, while the alkaline water electrolysis (AWE) order intake is below the previous year's record level, as expected. A significant increase in order intake for the 2023/24 financial year is expected due to an order of over 700 megawatts from H2 Green Steel and the planned conversion of capacity reservations into binding contracts. Revenue is up on the previous year, in particular, due to the processing of the order backlog of the AWE business. EBIT is above the previous year's level due to higher sales in the AWE business and better project execution.
Large hydrogen companies like Plug Power or Nel ASA can only dream of a positive EBIT. As an investor, one should keep an eye on the costs associated with organizational capacity expansion. In the announcement, the management pointed out the expected cost increase for the coming year. The official figures are to be announced on December 18 before the start of trading. One share currently costs EUR 17.05.
Altech Advanced Materials - Capacity improvements
Altech Advanced Materials is active in the areas of electric vehicles and electricity storage, with a focus on Silumina Anodes™ for electric cars and the CERENERGY® battery for the electricity storage market. Both products are based on innovative technologies that significantly improve existing technologies in their respective fields. The CERENERGY® battery, developed jointly with the Fraunhofer Institute, uses nickel, salt, ceramics and metal and does not require any critical raw materials. The battery requires no cooling or heating, is non-flammable, has a service life of more than 15 years and is 100% recyclable. The production plant, with a capacity of at least 120 megawatt-hours after optimization, is to be built in Schwarze Pumpe starting in 2024.
The Silumina Anodes™ plant is also undergoing an increase in production. In the final feasibility study (DFS), it was decided to focus the plant entirely on silicon. Initially, 90% graphite was planned. This move increases the annual output capacity from 15 gigawatts (GW) to 120 GW, assuming a mixing ratio of 10% Silumina Anodes™ in battery manufacturing. An annual production of 8,000 tons of coated silicon anode material is expected. The material can improve the energy density of the battery by 30% with a 10% admixture. There are no additional costs as a result of the new production strategy. The DFS is due to be completed this year.
All these projects require funding, so the Company announced a capital increase on November 24. A total of EUR 3.6 million is to be raised by issuing 480,000 shares at a subscription price of EUR 7.60 per share. Of these, 240,000 shares will be allocated to existing shareholders, who will receive subscription rights for 29 shares. Shareholders' subscription rights have been excluded for the other 240,000 shares, which will be allocated to holders of convertible bonds and warrant holders. Those who would like more first-hand information should make a note of December 5 at 17:30, when CEO Uwe Ahrens will present the Company at the International Investment Forum and answer investors' questions. Since the announcement of the capital increase, the share has come under pressure and is currently trading at EUR 10.00.
JinkoSolar - Benefits from tough competition
Solar energy is sustainable, and solar modules can be used in many locations, meaning that photovoltaic owners can significantly reduce their electricity costs. The solar industry will also contribute to the production of green hydrogen. JinkoSolar is one of the leading manufacturers of solar modules. The Chinese company is well positioned despite a price war and rising interest rates. The main reason is its high-quality N-type cells, which have not suffered as much from the price war due to their strong performance. In the coming years, N-type cells are expected to contribute more and more to the company's revenue.
The figures for the third quarter showed growth in deliveries, sales, net profit, gross margin and earnings per share. The increase in shipments outpaced the rise in sales, as average prices for solar modules fell, although this was also due to the fall in the price of polysilicon. Prices are not expected to stabilize until next year. The Company generates almost 40% of its turnover on the Chinese market.
However, as other solar suppliers are currently reporting poor figures, investors are reluctant to buy. According to CEO Xiande Li, the Company will benefit from the strong competition. Falling prices stimulate increased demand, particularly for N-type cells, where JinkoSolar enjoys a higher margin. Since the end of October, the share price has recovered significantly from its low for the year of USD 25.15 and is currently trading at USD 34.11. Despite a significant increase in earnings and gross margin, the stock has lost around 18% since the beginning of the year.
Those looking to generate profits with GreenTech shares should first do their homework and closely examine the companies and their technologies. In a hype market, all stocks often perform well. However, caution is advised in the hydrogen sector, as major companies are not profitable and face challenges in a rising interest rate environment. Fortunately, ThyssenKrupp Nucera does not have these problems. This is also due to the diversification through the CA business. Altech Advanced Materials is represented in two very interesting and high-growth segments, with a Drop-In technology in the field of battery production and in the electricity storage sector. Significant growth is anticipated in these areas in the coming years. According to its own statements, JinkoSolar is benefiting from the fierce competition and the use of solar energy will continue to increase. In addition, the figures look good.
Conflict of interest
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