Australia, China cleantech companies star on markets
CleanTech companies not only appeal for their technologies — they also seem to be seen by some investors as a good investment.
Both in Australia and China, the CleanTech indices outperformed local stock markets in the first quarter of 2016. Two companies (both in lithium) associated with InvestorIntel, Galaxy Resources (ASX:GXY) and Neometals (ASX:NMT), both gained more than 20% in their market value in March, as well as over the January-March period. Another InvestorIntel associate, Lithium Australian (ASX:LIT) has now been added to the index.
The Australian CleanTech Index, managed by South Australia-based Australian CleanTech, now includes 64 companies with a combined market capitalization of more than A$20 billion. The index is weighted by market capitalization and is benchmarked against the two main indices at the Australian Securities Exchange, the S&P/ASX200 and S&P/ASX Small Ordinaries.
The Australian CleanTech Index rose from 43.89 to 46.53 in March, a gain of 6%. This compared to the S&P/ASX200 gain of 4% at the S&P/ASX Small Ordinaries rise of 4.4%.
When spread over the first three months of the year, the CleanTech index rose 4.4%, while both its benchmarks actually fell: the S&P/ASX200 lost 4.2% in the March quarter, the Small Ordinaries being down by 0.3%.
In both 2014 and 2015 the cleantech companies did well. Here are the comparative records:
Get our daily investorintel update
Australian CleanTech Index +19.6%
S&P/ASX Small Ordinaries +9.6%
Australian CleanTech Index +16.6%
S&P/ASX Small Ordinaries -2.8%
The Australian CleanTech Index is split into a number of sub-sectors:
- Solar thermal and Photovoltaics
- Wind generation
- Environmental Services
- Low emissions vehicle technologies
- Carbon trading
- Waste Management and recycling
- Energy efficiency and biomaterials
- Green buildings
- Energy storage and fuel cells
- Wave, tidal and hydro
- Geothermal (hot dry rocks and conventional.
Lithium Australia is one of four companies just added to the index. The others are
- Contact Energy (ASX:CEN) which is one of New Zealand’s five large power utilities. It generates 76% of its energy from renewal resources — two large hydro dams in the South Island and from four geothermal plants. The remainder of its electricity is produced in gas-powered plants.
- Emefcy Group (ASX:EMC). It provides wastewater treatment technologies for municipal and industrial plants. The company offers a membrane biofilm reactor for water treatment.
- HazerGroup (ASX:HZR) has what its describes as a novel low-cost hydrogen and graphite production technology.
The Australian organization also operates the China CleanTech Index through its Beijing-based Chinese operations. This index tracks all 162 Chinese-based listed cleantech companies with a combined market capitalization of $276 billion.
The China index had a spectacular 2015, especially in March and April; then and in later months through into 2016 it has consistently outperformed the Shanghai Stock Exchange’s composite index. The largest companies on this index include China Yangtze Power, Hanenergy Thin Film Power Group, Beijing Originwater Technology and Sichuan Tianqi Lithium Industries.
The 5th Annual Cleantech & Technology Metals Summit: Invest in the Cleantech Revolution is a 2-day event being held on Tuesday, May 10th and Wednesday, May 11th at the Omni King Edward Hotel on 37 King St. East in Toronto, Ontario. Both days have agendas from 8:30AM-5PM and include breakfast and lunch. There is a cocktail reception on the 1st evening, and everything is included in the delegate cost of CAD$750. To register as a delegate, click here: https://ctms2016.eventbrite.com
InvestorIntel is a trusted source of reliable information at the forefront of emerging markets that brings investment opportunities to discerning investors.