April-June 2015 Quarterly Performance Report
The cleantech industry is split into a number of sub-sectors as detailed in the table below. Each of the sub-sectors contains companies that have both environmental and economic benefits.
Geothermal - Hot dry rocks and conventional
Low Emissions Transport Technologies
Solar Thermal and Photovoltaics
Energy Efficiency & Biomaterials
Waste Management & Recycling
Energy Storage & Fuel Cells
Wave, Tidal & Hydro
The cleantech sector is fundamentally different to Socially Responsible Investments (SRI) or Environmental, Social and Governance (ESG) performance. SRI and ESG look at incremental improvements in company performance and can be seen as 'operational hygiene' measures that find the best in class. Cleantech focuses on companies whose output positively enhances the communities and ecologies in which they reside. It is about doing 'more good' rather than 'less bad'.
With over 160 companies falling under the coverage of the Index and with a combined market capitalisation of over 2.2 trillion Renminbi (US$370 billion), the China CleanTech Index presents a picture of the Chinese cleantech industry's growth in a single measure.
The Index is weighted by market capitalisation and is benchmarked against the following indices to show its relative performance:
- Wilder Hill New Energy Global Innovation Index (NEX) - which measures the performance of global clean energy stocks
- Cleantech Index (CTIUS) - which measures the performance of global cleantech stocks
- China Shanghai Composite Index (SHCOMP) - which measures the performance of stocks listed in Shanghai.
- MSCI World (MSCI) - which provides a measure of the performance of global stock markets.
The rules for the formulation and management of the Index have been developed with reference to global best practice. An overview of these rules is provided in the annual performance report.
The China Cleantech Index is updated each month and published on the SinoCleantech website at www.sinocleantech.com and on the Australian CleanTech website at www.auscleantech.com.au. It is published internationally in conjunction with Cleantech Investor (www.cleantechinvestor.com) and in China in conjunction with Top Capital (www.topcapital.cn).
Monthly results can be emailed directly to interested parties by subscribing at www.sinocleantech.com.
China CleanTech Index Performance
The China CleanTech Index underperformed all of its four benchmarks for the month of June 2015 and recorded a loss of 12.9%. This was driven by both big losses across all Chinese stocks due to the volatile Shanghai stock exchange.
The China CleanTech Index fell from 74.7 to 65.0 over the month of June losing the gains of the last two months. This compared to the NEX loss of 6.4%, the CTIUS loss of 2.2%, the Shanghai Composite loss of 7.3% and the MSCI loss of 2.5%. The China CleanTech 20 recorded a 8.9% loss.
Over the second quarter of 2015, the China CleanTech Index recorded a gain of 1.2%, outperforming three of its benchmark indices. Over the quarter, the NEX gained 0.8%, the CTIUS gained 0.7%, the Shanghai Composite gained 14.1% and the MSCI lost 0.3%.
The twelve month gain for the China CleanTech Index now stands at 49.0% outperforming all but the Shanghai Composite. This twelve month gain is being driven by the China Hydro Index (+158%), the China Efficiency Index (+78%) and the China Water Index (+65%).
--------------------------------------------------------------- 2012 2013 2014 06-2015 2Q15 6m 12m 3y --------------------------------------------------------------- (CCTI) -16.5% 29.2% 18.8% -12.9% 1.2% 23.4% 49.0% 77.0% (CCT20) -15.5% 24.1% 18.2% -8.9% 2.8% 17.3% 53.3% 62.5% (NEX) -5.5% 53.7% -3.2% -6.4% 0.8% 9.9% -8.2% 70.6% (CTIUS) 7.3% 37.0% -8.4% -2.2% 0.7% 5.1% -7.6% 44.0% (SHCOMP) 3.2% -6.7% 52.8% -7.3% 14.1% 32.3% 109% 92.2% (MSCI) 13.2% 24.1% 2.9% -2.5% -0.3% 1.5% -0.4% 40.5% ---------------------------------------------------------------
CCTI - China CleanTech Index
CCT20 - China CleanTech 20
NEX - Wilder Hill New Energy Global Innovation Index
CTIUS - Cleantech Index
SHCOMP - China Shanghai Composite Index
MSCI - MSCI World
The market capitalisation of the 164 stocks in the China CleanTech Index after its rebalance is RMB 2.3 trillion (US$369 billion). This is a long way up from the Index's trough of RMB 604 billion in November 2012.
Best and Worst Stocks
The best and worst performers in terms of share price performance over the month and quarter are shown in the table below.
Over the month, 7 companies recorded share price gains of more than 15% and 15 companies recorded losses of more than 35%.
Over the quarter, 13 companies recorded share price gains of more than 50% and 8 companies recorded losses of more than 50%.
Share Price Gain > 15%
China Energy Recovery (OTCMKTS:CGYV)
Shenzhen Refond Optoelectronics (SHE:300241)
Shantou Wanshun Package Material (SHE:300057)
Yingli Green Energy (NYSE:YGE)
Zhejiang Narada Power Source (SHE:300068)
Shanghai Young Sun Investment
Share Price Loss > 35%
China Clean Energy (OTCMKTS:CCGY)
Foshan Electrical and Lighting (SHE:000541)
Jiangxi Lianchuang Optoelec.Sc&Tech. (SHA:600363)
Shenzhen AOTO Electronics (SHA:601158)
Suzhou Hailu Heavy Industry (SHE:002255)
Xiamen Changelight (SHE:300102)
Fujian Longking (SHA:600688)
Beijing New Building Materials (SHE:000786)
Shanghai Yanhua Smartech (SHE:002178)
Shenzen Das Intellitech
China Sun Group High Tech (OTCMKTS:CSGH)
Shenzhen Dongjiang Environmental
Beijing Water Business Doctor (SHE:300055)
Shanghai Safbon Water Service (SHE:300262)
Second Quarter 2015
Share Price Gain > 50%
Cofco Biochemical (Anhui) (SHE:000930)
Guangzhou Hongli Opto Electronic (SHE:300219)
Guangzhou Zhiguang Electric (SHE:002169)
Tianli Environmental Protection Eng (SHE:300156)
RINO International Corporation (OTCMKTS:RINO)
Shantou Wanshun Package Material (SHE:300057)
Xiamen Savings Environmental (SHE:300056)
Suntech Power Holdings (NYSE:STP)
Beijing Easpring Material Technology (SHE:300073)
Zhejiang Narada Power Source
China Industrial Waste Management Inc (OTCMKTS:CIWT)
Yunnan Wenshan Electric Power
Sinovel Wind Group (SHA:601558)
Share Price Loss > 50%
Ledman Optoelectronic (SHE:300162)
SmartHeat Inc (OTCMKTS:HEAT)
Xiamen Changelight (SHE:300102)
Fujian Longking (SHA:600388)
Hareon Solar Technology (SHA:600401)
Jiangsu Akcome Solar Science and Technology (SHE:002610)
Dongjiang Environmental (HKG:0895)
Nanjing CEC Environmental Protection(SHE:300172)
The China CleanTech Index underwent its quarterly rebalancing at the end of June which took account of recent share issues and other corporate activity.
No companies were added to the Index and the following three companies were removed:
- Dongying Photovoltaic Power Co Ltd (CNPV Solar Power SA) (ALCNP.PA)
- HanKore Environment Tech Group Ltd (B22.SI)
- A-Power Energy Generation Systems Ltd (APWR.PK)
To provide an analysis of the China CleanTech Index, eight sub-indices have been developed. The performance of each of these sub-indices over the last five years and the current quarter are shown in the table and charts below.
The best results for the quarter were the 27.5% gain for the China Hydro Index and the 14.4% gain for the China Storage Index. The worst result was recorded by the 26.2% loss from the China Solar Index.
Index Component Companies
The 20 largest Index constituents by market capitalisation on 30 June 2015 are provided in the table below. These stocks will be the constituents of the China CleanTech 20 until the Index rebalance on 30 September 2015
In the China CleanTech 20, the greatest sub-sector representations are Water with eight companies followed by Wind with four companies.
The two new entrants to this list at this rebalance are Zhongshan Public Utilities Group and Beijing SPC Environment Protection Tech. These have taken the place of Beijing Water Business Doctor and Sungrow Power Supply.
To view the full report, please visit:
About Sino CleanTech
Sino CleanTech publishes the China CleanTech Index and facilitates Chinese Cleantech investments and provides services to Government agencies across Asia to help stimulate investment in the Cleantech industry. These investments include looking at listed cleantech stocks and direct investment into projects and companies. Sino Cleantech is active in facilitating:
- Investment from Chinese investors into cleantech in both China and internationally; and
- Investment from international investors into the Chinese cleantech market.
Please contact us if you are looking for funding or seeking investments.
Zhejiang Narada Power Source Co., Ltd
Yingli Green Energy
Xiamen Savings Environmental Co., Ltd
Xiamen Changelight Co Ltd
Tianli Enviromental Protection Eng Co
Suzhou Hailu Heavy Industry Co., Ltd
Suntech Power Holdings Co., Ltd.
Sinovel Wind Group Company Limited
Shenzhen Refond Optoelectronics Co Ltd
Shenzhen AOTO Electronics Co., Ltd
Shantou Wanshun Package Mtrl Stck Co Ltd
Shanghai Yanhua Smartech Group Co Ltd
Shanghai Safbon Water Service Co
RINO International Corporation
Nanjing CEC Environmental Protection Co., Ltd
Ledman Optoelectronic Co Ltd
Jiangxi Lianchuang Optoelectric
Jiangsu Akcome Science and Technology Co Ltd
Hareon Solar Technology Co Ltd
Guangzhou Zhiguang Electric Co., Ltd
Guangzhou Hongli Opto Electronic Co Ltd
Fujian Longking Co., Ltd
Foshan Electrical and Lighting Co Ltd
Dongjiang Environmental Co Ltd
Cofco Biochemical Anhui Co Ltd
China Sun Group High Tech Co
China Industrial Waste Management Inc.
China Energy Recovery Inc.
China Clean Energy Inc.
Beijing Water Business Doctor Co., Ltd
Beijing New Building Materials
Beijing Easpring Material Techgy Co Ltd