Motech and Shinsung E&G replace China Shuifa Singyes and Thai Solar in PPVX
Post date: 20/09/2020 - 15:11
The steeply rising share prices of two PV companies from Taiwan and South Korea lead to a double swap in the PHOTON Photovoltaic Stock Index PPVX. The index lists the PV companies with the highest market capitalization worldwide and is limited to 30 stocks. Therefore, for each newcomer, the company with the lowest market capitalization has to give up its place.
One newcomer to the PPVX is Motech Industries Inc., listed on the Taipei Stock Exchange (TPEX). Founded in 1981 and with headquarters in Tainan (Taiwan), production facilities in Suzhou (China) and an agency in Japan, the company is active as cell and module manufacturer and in the PV systems business. Motech has previously been listed in the PPVX, most recently from December 2019 to March 2020, when it exited with a market capitalization of around $160 million. When it resumed at the closing price of TWD24.50 last Friday, the value was almost three times higher at $456 million.
The second newcomer, South Korean manufacturer of solar cells and modules and production equipment Shinsung E&G Co. was also represented in the PPVX from August 2017 to July 2019. At that time the market value of the company, which is listed on the Korea Stock Exchange, was around $169 million, whereas last Friday it was $365 million at a price of KRW2,265.
On the other hand, China Shuifa Singyes Energy Holdings Ltd. had a market capitalization of only $182 million and the Thai solar project developer Thai Solar Energy Company Ltd. had a market capitalization of $188 million. Following the withdrawal of these two companies, there is no longer any PPVX company that would be considered for the calculation of the index with only two of six possible weighting points (corresponding to a market value of €50 to 200 million; $59 to 237 million); the category with only one weighting point has been vacant since May 2016.
The PPVX as a whole closed on Friday at 2,386 points, 4.3 % higher than the previous week and 62.2 % higher than at the beginning of the year. Its reference value NYSE Arca Oil rose 2.6 % during the week, but was 49.9 % lower than on January 1, putting it 112.1 %age points behind the PPVX. Since the beginning of 2003, the solar stocks (plus 48.1 %) have gained 714.6 percentage points over the Arca Oil (plus 748.1 %).
The PPVX shares with the highest price gains of the week are Meyer Burger (33.5 %), Azure Power (26.5 %) and Jinko Solar (15.9 %). The highest price losses were suffered by Maxeon Solar (27.4 %), First Solar (11.7 %) and SunPower (5.0 %). The highest share price gains since the beginning of the year are currently recorded by Vivint Solar (357.9 %), Sunrun (340.7 %) and Azure Power (161.4 %), while the highest price losses were suffered by Maxeon Solar (33.7 %), BCPG (23.5 %) and Meyer Burger (16.1 %). Panda Green Energy Group Ltd. was renamed Beijing Energy International Holding Co. Ltd. on September 15.