31. August 2021 | 13:11 CET
Veolia, Memiontec, JinkoSolar, Alibaba - Green shares on the buy list!
Politics is going its own way with the climate protocol from Paris. In addition to climate protection, many government programs also include keeping necessary life resources clean, such as air and water. Environmental protection is usually associated with higher costs in industry and must be mandated by law to ensure that the necessary measures are implemented consistently. In Europe, we are already well advanced with such climate laws with the CO2 tax. In other countries, it is taking a little longer. The US has been behind since Donald Trump, but this should be made up for under Joe Biden. We take a look at well-known environmental stocks and their opportunities.
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ISIN: VEOLIA ENVIRONNE. EO 5 | FR0000124141 , Memiontec Holdings Limited | SGXE56008290 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007 , ALIBABA GR.HLDG SP.ADR 8 | US01609W1027
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Veolia SA - A benchmark in the water industry
Veolia SA (formerly Vivendi Environnement) specializes in water, wastewater, waste management and energy supply. Formerly a state-owned public service company, Veolia has undergone several changes and has also been known as Générale des Eaux (CGE) or Suez. Today, the Group employs around 171,000 people and operates in 38 countries; its history dates back to 1853.
Veolia's core "Water and Wastewater" division specializes in outsourcing water and wastewater services for municipal facilities and industrial customers. Here, Veolia provides engineering, design and execution of construction projects for the production and supply of drinking water, wastewater disposal networks, desalination plants and wastewater treatment plants, and their maintenance and repair. The Energy Services sector offers services to optimize energy efficiency, the economical production of renewable energy and the reduction of C02. In 2020, the Veolia Group supplied drinking water to around 120 million people and disposed of their wastewater and waste. Its waste management, water management, and energy services activities in Germany are concentrated in Veolia Deutschland GmbH, based in Berlin.
The environmental services of the Veolia Foundation are outstanding. It maintains green non-profit projects in France and abroad with a focus on "sustainable development". Its main fields of activity are the environment, solidarity and professional integration. Since its creation in 2004, the foundation has helped with more than 1,000 projects worldwide, providing financial and human support through volunteers and assisting with humanitarian missions.
In 2020, Veolia had revenues of EUR 27 billion and a net income of approximately EUR 950 million. The dividend yield is a lush 4%. The sustainable orientation of the Group also pleases investors, as the environmental standard value has already increased by 41% in 12 months.
Memiontec - Water treatment for Asia
With Memiontec Holdings Ltd., we find a Singapore-based company whose focus covers all areas of water treatment and purification. For more than 20 years, the Company has provided water and wastewater-related services throughout Singapore, Indonesia and the People's Republic of China. In Indonesia, Memiontec has leveraged its more than 20 years of business presence to diversify into the water supply sector through TOOT and BOOT projects with public or private organizations since 2016. With the entire value chain in the water segment, the Indonesian-based Company is one of the first contacts for local disposal concepts.
Depending on the type of contamination, Memiontec works with the help of membranes, ion exchangers or a combination of physical, chemical and biological process chains in water purification. Customers are mainly municipalities and larger industrial companies. With good setups in Singapore and Indonesia, the Company's growth target is to provide its environmental services to a wide range of neighboring countries in Asia.
Currently, it is reported that the water solutions specialist has now won two new tenders worth a total of SGD 12.7 million from Singapore's Public Utilities Board. In April, the Company had already been able to book tickets worth SGD 21.7 million. The Group's order book now stands at around SGD 91.6 million as of July 31, 2021. Memiontec anticipates that there will be several significant public tenders in Singapore over the next two years, which will positively impact the Group's growth.
The Memiontec share price reacted to the good news with a jump. The price rose by a full 50% from SGD 0.24 to SGD 0.36 within just 5 trading days. The share is also listed in Frankfurt and Stuttgart. The story is now getting more and more attention and fits into any sustainable growth portfolio because of its green focus.
JinkoSolar - Taken to task with Alibaba & Co.
Chinese shares are currently not having an easy time because the regulator has looked at business models of successful companies with a USA listing. Internet giants Alibaba, Tencent, Baidu and Co., have thus had to shut down or make lasting changes to business units due to various public requirements. It has resulted in an average share price drop of more than 50%.
The very successful JinkoSolar was even taken to task, even though its business model is more concerned with environmental protection and energy efficiency. However, the thumbscrews on the web giants should be somewhat secondary for the manufacturer of solar modules, yet the poor investment climate also affects Jinko.
Now the solar giant is introducing a new PV module. At the beginning of the year, the Group had started to produce the monocrystalline solar modules. Some details have been announced about the solar module "Tiger Neo", which will be launched on the market soon. Its efficiency ranges from 21.11 to 22.18%, with a linear degression of power of 0.40% over a full 30 years. In the first year, the performance deteriorates by less than 1%. With these framework parameters, the new module is expected to be a best seller.
JinkoSolar is currently in the top Group of module producers; moreover, the Company has a solid technological position. Growth should therefore continue unabated as many governments will not roll out green infrastructure programs until 2022. The stock lost over 50% in the China correction from January to May and is now catching up! 20% plus in just one week is quite a feat, though, so act on weak days.
Not every green stock has what it takes to be a good investment story, as seen in the overpriced hydrogen stocks. Our selection includes solid growth stocks with good medium-term prospects. Veolia and JinkoSolar are relatively well-known standard stocks. The much smaller Memiontec is well-positioned and growing well.