D.he shares of one of the few listed German solar companies that remain, the inverter manufacturer SMA Solar, is in marked demand on Thursday. Most recently it went up by more than 11 percent to 48.18 euros. The share price was last higher in June 2018. Another driver is the prospect of greener energy policies in the United States under a new president, Democrat Joe Biden.
In the first nine months of the current financial year, the operating result rose by around 60 percent to 41.4 million euros compared to the same period in the previous year, while sales rose by 23 percent to 774 million euros. Thanks to the higher profitability, the company was able to get over a slight decline in sales in the third quarter. The bottom line is now a profit of 9 million euros after nine months, after a loss of 11 million a year ago.
In 2020, sales are expected to be between 1.0 and 1.1 billion euros and operating profit between 50 and 80 million euros. The management is also relying on a slightly higher order backlog than in the second quarter, which grew by 4 percent to 792 million euros in the third quarter. According to its own admission, SMA Solar benefits from a broader line-up and focus on higher-margin businesses. For some time there has been an increasing focus on services and technology related to the operation of solar systems and the management of the flow of electricity. The project business in particular was once again strong.
Analyst Constantin Hesse from the Jefferies investment company called the results strong in an initial reaction. Most of all, he praised the continued improvement in profit margins. SMA remains on course despite Corona, wrote analyst Guido Hoymann from Bankhaus Metzler. Positioning as a reliable supplier with good quality is paying off. In addition, with its high-quality AC converters for converting solar power and for energy storage, the company is at a central point in the transition to renewable energies.