PPVX: Array Technologies and REC Silicon replace 7C Solarparken and Tainergy
Post date: 27/10/2020 - 11:46
The PHOTON Photovoltaic Stock Index PPVX is experiencing its sixth new addition this fall: After the U.S. cell and module manufacturer Maxeon Solar (a spin-off of Sunpower Inc.) was newly included in the index effective September 4, Motech Industries (Taiwan) and Shinsung E&G (South Korea) followed on September 18 and Tainergy Tech (Taiwan) on October 8. On October 23, the Norwegian silicon manufacturer REC Silicon and the US-based solar tracker provider Array Technologies Inc. have been added. As the index is limited to the 30 PV companies with the highest market capitalization worldwide, the two newcomers are replacing the companies with the currently lowest market capitalization. These are Tainergy Tech ($212 million), which was newly included just over two weeks ago, and 7C Solarparken ($296 million).
REC Silicon, which is listed on the Oslo Stock Exchange and has its headquarters in Lysaker (Norway) and production sites in the USA (Moses Lake, Washington and Butte, Montana), was previously included in the PPVX, but left the index in November 2019 after massive stock price decline. In December 2019, the share reached a low of around NOK2.07 ($0.22). Since then, the share price has tended to move upwards, and since the end of September 2020 has risen steeply – accompanied by several positive news on business development – to as much as NOK12.06 ($1.30) on October 15. On October 14, REC also offered new shares, which were placed on the same day at a price of NOK10.80 with total proceeds of NOK 1 billion ($108.2 million). On the record date for the PPVX admission on October 23, the share price was NOK10.87, bringing the company to a market capitalization of around $362 million.
The second new addition, Array Technologies, has only been trading on the Nasdaq since October 15. The issue price of $22 was above the initially announced range of $19 to 21. Founded in 1989 and based in Albuquerque (New Mexico), the company with around 350 employees is one of the leading suppliers of single-axis tracking systems for large solar power plants. Solar modules with an output of over 17 GW are now installed worldwide on substructures from Array Technologies. In 2019, the company generated 87 percent of its sales in the USA and eight percent in Australia. In the first half of 2020, sales increased by 116 percent to $552.6 million, and the result turned from a loss of $5.2 million to a profit of $76.1 million. At the IPO, seven million shares were newly issued for $154 million. Over 40 million shares – more than initially planned – were sold by a shareholder controlled by investment company Oaktree Capital. Thus the free float now amounts to 37 percent. On the day of admission to the PPVX – at the weekly closing price of $42 – the market value was around $5.3 billion.
Altogether the PPVX dropped by 3,5 percent in the past week to 2.958 points, which is, however, still 101.1 percent higher than on January 1. The Top 3 stocks since the beginning of the year are Sunrun with a gain of 305.7 percent, Enphase (295.4 percent) and Daqo New Energy (286.9 percent), the highest losses compared to the January level were suffered by BCPG Public (27.8 percent), Meyer Burger (9.5 percent) and Maxeon (8.4 percent). The highest price gains of the past week were recorded by GCL Poly (14.7 percent), West Holdings (12.7 percent) and Maxeon (10.7 percent), while the highest price losses were recorded by Scatec (19.9 percent), Solaria Energía (11.5 percent) and Sunrun (10.2 percent).