23. April 2021 | 07:27 CET
Varta, Deutsche Rohstoff, JinkoSolar: World Economic Forum praises climate investments
According to a study by the World Economic Forum, USD 500 billion was invested in renewable energy worldwide in 2020. The study compared 115 countries and the experts conclude that all 10 leading economies have improved environmentally, specifically in carbon in the energy mix. Leading the way are Sweden, Norway and Denmark. Germany ranks 18th, mainly because of its coal-fired power plants.
The electrification of the world is also progressing; 400 million people have gained access to electricity since 2010. Despite all the developments in renewables, around 80% of the world's energy is still generated from fossil fuels. In this context, today, we take a look at stocks from the energy sector.
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ISIN: DE000A0TGJ55 , DE000A0XYG76 , US47759T1007
Varta - New exciting business area
Varta has also received a damper, with the stock slipping from over EUR 180 to around EUR 117. The Company's data is very strong in this regard. From 2019 to 2020, sales have climbed by over 139%. The dividend is around 2%. Fantasy in the e-car space is also strong, but just yesterday, there was an announcement that is sure to please shareholders.
The cooperation between Varta and Lechwerke is being intensified. Lechwerke is distributing the new VARTA pulse neo. It is an intelligent energy storage device that works together with photovoltaic systems, smart household appliances or charging stations for electric cars.
The two partners tested the interaction of the components in a 3-week field study. The VARTA pulse neo is considered Varta's most compact energy storage system and can even be expanded. The share is currently in a sideways phase between EUR 117 and EUR 126. Prices above EUR 126 would probably initiate a turnaround.
Deutsche Rohstoff - The crisis is over
The analysts at First Berlin upgraded the Deutsche Rohstoff share to "buy" on April 20. The main reason is the increased valuation of the oil investments. Since the oil price has been marching north again, Deutsche Rohstoff has also been doing much better. The management reduced oil production during the crisis and is now producing at full capacity now that the oil price is back above USD 60.
The crisis was also used to make acquisitions. 28,000 acres of land were purchased in Wyoming. There, 5 wells are currently producing 300 barrels per day and offer the potential for more wells. At least one new well is expected to be drilled in this area this year. Management was also successful in the investment area. The purchase and sale of blocks of shares in Oasis Petroleum during the crisis generated a profit of EUR 7.5 million. The investment in Almonty Industries is also developing excellently.
In an interview, CEO Dr. Thomas Gutschlag revealed that the Company could imagine entering into strategic investments in the mining sector to supply the electromobility market with copper or lithium. On the dividend payout, Dr. Gutschlag reiterated that the Company wants shareholders to participate in the Company's success.
The stock tested the EUR 6.20 area twice in March and October before more than doubling by the end of February. Since then, the share has been running sideways between EUR 11.60 and EUR 12.85. However, the old highs of the share around EUR 26 are still a long way off.
JinkoSolar - What is next?
Currently, the entire solar industry is in free fall. This decline has also affected JinkoSolar, one of the largest solar panel manufacturers in the world. From the all-time high, it went down more than 60%. The Company can be described as a low-cost producer, and it has been posting rising sales for years. This year it has announced to increase production by 10 megawatts. The solar panels are among the best on the market and JinkoSolar holds 12 world records. Another plus is its global presence and distribution channels.
JinkoSolar's weaknesses are its margins and high research costs. However, the overall solar module market is expected to grow 10% per year. Under Joe Biden, the US is looking to expand more in the renewable energy sector. JinkoSolar has gradually increased market share in recent years.
Yesterday, the Company joined the largest corporate sustainability initiative, the Global Compact, of the United Nations. It also won the award for the best employer in Asia for the third year in a row. JinkoSolar shares are currently trading below the 50 moving average. The area around USD 29 should act as support. Above USD 40, the picture brightens considerably.