Flat Glass and Enlight Renewable enter PPVX, index up 7.1 percent

A double swap has taken place in the PHOTON Photovoltaic Stock Index PPVX, effective Friday (June 25). Spanish project developer and solar power plant operator Solarpack Corporación Tecnológica S.A. and Renesola Ltd. of China, which operates in the same business sector, are leaving the index, while Flat Glass Group Co. Ltd. of China and Israeli project developer and operator of solar and wind power plants Enlight Renewable Energy Ltd. are new additions.
Flat Glass Group (www.flatgroup.com.cn, ISIN CNE100002375, ticker symbol 6865.HK), founded in 1998 and headquartered in Jiaxing in China’s Zhejang province, is listed on its home stock exchange in Shanghai and, since 2015, on the Hong Kong Stock Exchange. With a total of nine subsidiaries, it generates its sales mainly with PV glass in addition to the float glass, architectural glass and household glass sectors. To a small extent, Flat Glass also deals directly with PV projects. About 3,400 employees (as of 2020) generated revenue of CNY 6.04 billion ($935 million) and profits of CNY1.29 billion($200 million) last year. As of the effective date, the company’s market capitalization was about HKD 64.0 billion ($8.2 billion), or about nine times its annual revenue.
Enlight Renewable Energy (www.enlightenergy.co.il, ISIN IL0007200111, ticker symbol ENLT.TA) was founded in 2008 and is listed on the Tel Aviv Stock Exchange. The company initiates, develops and finances wind and solar power plants in Israel and currently eight European countries (Spain, Ireland, Sweden, Italy, Hungary, Serbia, Kosovo and Croatia). Sales in 2020 were ILS 241.7 million ($74.2 million). Operating profit nearly doubled to ILS 48.7 million, but due to extraordinary costs for early redemptions, the bottom line was a loss of about ILS 159 million. With a project portfolio of around two GW, some of which are still under construction or in the pre-construction phase, and a further 2.7 GW in various stages of development, Enlight is a small company by international standards, but nevertheless had a stock market value of ILS 6.35 billion ($1.95 billion) as of the effective date, more than 25 times its annual turnover.
Renesola vacates its place in the PPVX, which is limited to 30 stocks, because it was the index company with the lowest stock market value, with $624 million as of the cutoff date. Solarpack, with $1.04 billion in market value, is being dropped from the PPVX because the stock is removed from trading following a takeover bid by Swedish fund EQT Infrastructure V Fund (or its subsidiary Veleta BidCo S.à r.l.).
Last week, the PPVX rose 3.5 percent to 3,722 points, while its benchmark NYSE Arca Oil rose 7.8 percent (to 984 points). At minus 8.5 percent year-to-date, the PPVX trails the oil stock index (up 52.6 percent) by 61.1 percentage points. In a long-term comparison since the beginning of 2003, however, the solar stocks (up 1,223 percent) have a 1,092 percentage point lead over the Arca Oil (up 131 percent).
Last week’s highest price gains were posted by Sunrun (21.0 percent), Enphase (19.2 percent) and Meyer Burger (18.4 percent), while the biggest losses were posted by Daqo New Energy (14.6 percent), BCPG (7.0 percent) and Jinko Solar (6.9 percent). The top 3 stocks year-to-date are Meyer Burger with a gain of 58.2 percent, Sino-American Silicon (7.6 percent) and Sunpower (7.0 percent); GCL-Poly’s stock reached plus 61.0 percent by April but has since been suspended from trading. The highest share price losses from January levels are currently posted by Array Technologies (63.4 percent), Soltec (43.3 percent) and Neoen (41.6 percent). The cumulative market value of all PPVX companies is approximately €144.0 billion ($172 billion).

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