Renesola and Grenergy replace Motech and Shinsung in PPVX, index rises 15.4 percent
Post date: 25/01/2021 - 15:05
Two solar companies that were only included in the PHOTON Photovoltaic Stock Index PPVX last September have already had to vacate their places in the index, which is limited to 30 stocks, after two other candidates overtook them in terms of market capitalization. The two dropouts are Taiwan’s Motech Industries Inc. (manufacturing solar cells and modules, trading in PV systems) and South Korea’s Shinsung E&G Co. (manufacturer of solar cells, modules, and production equipment). With a stock market value of around $395 million (Motech) and $591 million (Shinsung E&G), they were the PPVX companies with the lowest stock market value as of January 22.
The first of the two new entrants is Chinese solar project developer Renesola Ltd, which was previously represented in the PPVX until March 2015. At that time, Renesola operated as a silicon, wafer and module manufacturer with more than 5,000 employees; after changing its business model, it now has fewer than 200. Following the issuance of 2.5 million new share certificates (U.S.-listed ADRs of 10 shares each) at a price of $16, completed on Jan. 11, 2021, Renesola currently has a market cap of $2.0 billion with 59.6 million share certificates at a price of $33.55.
The second newcomer is Spain’s Grenergy Renovables SA. Founded in 2007, the company operates (with around 150 employees) as an independent power producer as well as in project development, construction, operation and maintenance of wind and especially solar power plants in Spain and Latin America. According to its own information, Grenergy has so far developed around 45 plants, operates a portfolio of 163 MW and is active as a service provider for the operation and maintenance of 300 MW. Despite these dimensions, which are rather small by international standards, the company, which has been listed on the Madrid Stock Exchange since 2019, is valued at €819 million ($994 million) with 24.31 million shares at a price of €33.70.
Last week, the PPVX rose 15.4 percent to 4,992 points as a result of, in some cases, extreme price gains. Its benchmark NYSE Arca Oil lost 0.6 percent. Thirteen PPVX stocks alone recorded double-digit gains, with the highest being posted by SunPower (47.7 percent), GCL-Poly (44.9 percent) and Daqo New Energy (34.4 percent). The highest price losses were suffered by Solarpack (11.2 percent), United Renewable Energy (4.8 percent) and Soltec (4.1 percent). The top 3 stocks year-to-date are currently SunPower, up 84.1 percent, Daqo New Energy (68.7 percent) and Maxeon (68.1 percent). The highest price losses from January levels are recorded by Solarpack (19.8 percent), Soltec (12.3 percent) and United Renewable Energy (9.8 percent).
At plus 22.7 percent year-to-date, the PPVX is ahead of the NYSE Arca Oil (plus 11.7 percent) by 11.0 percentage points. In a long-term comparison since the beginning of 2003, the PPVX (up 1,674 percent) has a 1,605 percentage point lead over the oil stocks (up 69 percent). The cumulative stock market value of all PPVX companies is currently around €144 billion ($175 billion).