Global Decarbonisation Monthly Report | April
- Risk free rates continued to increase in March,
with the US 10-year and 30-year Treasury yields closing the month at 1.746% and
2.425% respectively. Market analysts are referring to a rotation of capital towards value, with the
Dow Jones Industrial Average up 5.61% in the month, while the S&P500 was up
3.86% and the Nasdaq flat at 0.91% in the period. As companies have now
reported their annual reports for the FY 2020, it gave us the opportunity to go
over the key fundamentals for the companies in our universe: revenue growth
rates, pricing strategies, market shares, operating margins and net income.
What we observe and share in this report are robust top line growth across a
variety of decarbonisation solutions – from infrastructure solutions related to
renewable energy, to consumer led products like telepresence and plant-based
- The world’s first classification system for what
constitutes a “green activity”, based on science-based criteria, is under
intense debate again. The Financial Times
reported on March 22nd that it had received a copy of the draft
legal text and that natural gas was being considered by the European Union
leaders in Brussels to be added as a sustainable solution. Many countries
oppose the change and alert of the risk of locking in more fossil fuel
investments. The commission will publish the draft legal act in April.
- President Biden will be hosting a summit with 40 country leaders on
April 22nd, the Earth Day. The focus of the event is the climate crisis,
and the US president is expected to make further announcements prior to the
event, beyond the pledge of making the US energy sector emissions neutral by
2035 and the American economy net zero by 2050. On the 31st of
March, President Biden announced a $2 trillion plan to modernise infrastructure,
affordable housing, and water being areas of focus.
iClima Global Decarbonisation Enablers Index
Past performance is no guarantee
of future performance.
Source: Bloomberg, Solactive, HANetf
Index, in USD. 12 Month figures based on 31.03.20 -31.03.21.
Performance in March
Concerns over inflation and long-term interest rates will
remain as increasing rates of vaccination fuel expectations of economic recovery. As
we will see below, several companies in the Climate change ETF reported very strong sales and
financial results for the fiscal year 2020. Past performance is no guarantee of
The Climate change ETF closed the third month of the year down 1.4%, YTD is
now up 2.48%. In March, we continue to see a
correction on some of the best performing stocks in 2020, particularly in the
EV and Fuel Cell segments, with NIO, Workhorse, Tesla, NEL
and PowerCell being in the negative territory as investors took profit,
part of the rotation we are seeing in the market.
Past performance is on guarantee of future performance. Source
of all data: iClima/ Bloomberg. Data as of 31.03.21
iClima Global Decarbonisation Enablers
As of 31.03.21
CLMA iClima Global Decarbonisation Enablers UCITS ETF (Acc)
CLMA iClima Global Decarbonisation Enablers Index™
Performance before inception is based on back tested data.
Back testing is the process of evaluating an investment strategy by applying it
to historical data to simulate what the performance of such a strategy would
have been. Back tested data does not represent actual performance and should
not be interpreted as an indication of actual or future performance. Past
performance for the index is in USD. Past performance is not an indicator
for future results and should not be the sole factor of consideration when
selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”)
before investing and should refer to the section of the Prospectus entitled
‘Risk Factors’ for further details of risks associated with an investment in
this product. Source: Bloomberg / HANetf. Data as of 31/03/21
Newsworthy Recently Reported Annual Growth
Plug Power (PLUG, up 1.38% YTD) In their Earnings
call on February 25th, the upstate NY based fuel cell maker reported
a one-time charge of ca. $456 million in the 4Q19 associated with accelerated
vesting of a customer’s warrants. A few weeks after the call the company
announced that KPMG will be restating the
financials for 2018 and 2019. In 2020, the company reported a 42% growth in
gross billings, reaching $337 million, with 9,800 fuel cells sold in the year. Their new guidance is
gross billings in excess of $475 million (a 41% growth) in 2021 and $ 750
million in 2022 (a 58% growth).
Li Auto Inc (LI, down 14.98% YTD) The Chinese maker of
premium plug-in hybrid electric SUVs started production of its first model, the
Li ONE in November 2019. In 2020 it reported delivery of 32,624 units, with
14,464 units sold in 4Q2020. As of March 31st, 2021, the company operated via 65 retail stores in 29 cities
and 135 servicing centres. Vehicle sales were RMB 4.06 billion ($621.9 million)
in 4Q20, representing a 64.6%
increase from RMB 2.46 billion in the 3Q2020. The company is reconfiguring
its Changzhou factory for their new model pipeline, especially the full-size
premium SUV to be launched in 2022.
Workhorse Group (WKHS, down 31.82% YTD) The Ohio
based last mile delivery electric truck company reported sales of $1.39 million
in 2020, a growth of ca. 270% over FY 2019. In the earnings call at
the beginning of March, CEO Duane Hughes said that production target is 3
trucks a day for the beginning of the year, increasing to 10 a day around the
summer. Current backlog order was reported as 8,000 units. In the earnings call,
the company commented on the US Postal Service contract for 165,000 delivery
trucks. Workhorse delivered six prototypes to the USPS and in
February the contract was given to Oshkosh Defense (to supply the trucks as
ICEs). The company still hopes the US Postal Service process could be reopened
to allow pure EVs into the contract.
Hello Fresh (HFG.DE, up 2.46% YTD) The German
based meal kit company reported robust growth last year, prompted by Covid
measures and WFH. The company closed 4Q2020 with 5.29 million active customers
(of which 2.61 are in the USA), a 78.3% growth versus 4Q2019. The number of
orders reached 22 million in the 4Q2020 (a 108.8% growth versus orders in
4Q2019) with the orders per customer increasing 18.3% in the same period
(reaching 4.2 orders per customer per quarter). In the FY 2020, the company
reported total group revenues of €3.75
billion (a 107.3% growth versus FY 2019) and a contribution margin of 28.2% for
the year. Last December the company gave a revenue growth guidance for 2021 as
20% to 25% the 2020 revenue figure.
NIO (NIO, down 22% YTD) The Chinese EV maker reported
delivery of 17,353 cars in the
4Q2020. In the FY 2020, total
units sold added to 43,728 units, compared with 20,565 in FY 2019 (a 112.6%
growth). Total revenues reached RMB 6.64 billion ($1.017 billion) in 4Q2020,
representing an increase of 133.2% from 4Q2019 and an increase of 46.7% from 3Q
2020. For FY 2020, total revenues reported as RMB 16.258 billion ($2.49 billion),
representing an increase of 107.8% over FY 2019.
Zoom (ZM, down 4.02% YTD) Now a household name, the
telepresence company reported on March 18th a total revenue for FY
ended on January 31, 2020 a 326% growth to that of the previous year. With
that the company reported five consecutive years of doubling revenue,
In USD Thousands
Past performance is on guarantee of future performance
In the same press release, the company confirmed its revenue
guidance for the FY to end in January 2022 as between $3.76 and $3.78 billion
(a ca. 42% growth).
Alfen (ALFEN.AS, down 13.5% YTD) The Dutch provider
of smart grid solutions, EV charging equipment and energy storage systems
reported profitable growth in a challenging year. Revenues in FY 2020 reached € 189 million (an overall 32%
growth versus FY2019), with EV charging sales leading the growth up by 105%,
followed by energy storage sales up 26% and smart grid revenues up by 14%.
Tesla (TSLA, down 7.9% YTD) The global leader in
the EV market reported delivery of ca. 500,000 units in 2020. Of that, 180,667 cars were
delivered in the 4Q2020 (a 61% YoY growth). In 2020 ca. 205 MW of solar
capacity was deployed (of which 86 MW were sold in 4Q2020, a 59% YoY growth)
and 3,022 MWh of storage was deployed in 2020 (of which 1,584 MWh in 4Q2020, a
199% YoY growth) driven by popularity of their Megapack (the utility scale
storage product). In the 4Q2020 total revenue reported was $10.74 billion
($7.38 billion was reported in 4Q2019).
Vestas Wind Systems (VWS, down 9.9% YTD) The Danish
manufacturer of wind turbines reported €14.8
billion in total revenue in FY 2020, a ca. 22% increase over
FY 2019. Last year the company delivered 17,212 MW of equipment and reported an
order backlog of 24,630 MW of equipment. Their guidance for 2021 is revenue in
the €16-17 billion range
(including service revenue).
DocuSign (DOCU, down 6.66% YTD) The California
company, pilar of the “anywhere economy”, reported a solid fourth quarter
ending on January 31, 2021. Revenue reached $430.9 million
in the quarter, a 57% YoY growth and $1.5 billion in the FY (a 49% growth over
the previous FY).
Beyond Meat (BYND, up 4.89% YTD) The Californian
producer of plant based burgers reported a 2020 FY total revenue of $406.8
million, a 36.6% YoY increase, translating into a gross margin of 30.1%
of net revenues. CEO Ethan Brown commented that sales to retail customers more
than doubled versus prior year.
Sunnova (NOVA, down 15.33% YTD) A provider of US
residential solar and storage reported 4Q2020 sales of $38 million, a 13.1%
growth over 3Q2019. In the FY 2020 revenue reached $160.8 million, a 22.2% YoY
growth. Total customer count reached
107,500 at the end of December. The company’s guidance for 2021 is that new
customers addition will be in the 55k to 58k range.
Canadian Solar Inc (CSIQ, down 8.0% YTD) The Ontario
based manufacturer of solar modules reported that in 2020 it shipped 11.3 GW of
solar modules, a 32% annual growth rate. The solar business is their largest
segment and in FY 2020 reached $3.1 billion, a 19.8% YoY increase.
Interesting to note that 47% of all sales were to customers in Asia, followed
by 31% of sales to customers in the Americas, and 22% to customers in Europe
& Rest of the world. The company has been pursuing the utility scale
battery storage segment. As of January 2021 the company reported a total
pipeline of 8,771 MWh of battery storage projects (of which only 3 MWh were in
operation, and 913 MWh under construction).
Past performance is no guarantee of future performance.
Source of all data: Bloomberg. Data as of 31.03.21
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