(BFM Bourse) – While the mercury is currently desperately low, the BFM Bourse has made a brief review of the securities that, in the more or less long term, may be borne by a harsh winter.
France and Europe have rediscovered the cold of winter in recent days. Temperatures are now moving into the negative across much of France, with levels close to -10 degrees Celsius in northern France on Tuesday. Central and Eastern Europe is also experiencing weak mercury with sub-zero temperatures.
Assuming Europe experiences a harsh winter, which listed companies could benefit from a cold spell in the short to medium term?
“The cold induces more gas consumption and therefore higher gas prices and, by extension, electricity prices – electricity prices set on the margin of gas prices. ‘utility companies’ room (of services to local communities, ed.) We can therefore think that a cold snap would thus benefit gas producers such as [le groupe allemand] RWE and to a lesser extent Royal Dutch-Shell or TotalEnergies”, explains Nicolas Descoqs, CFO at Clartan associés. “Engie, on the other hand, does not produce its own gas and would not benefit from such a move”, he adds.
“Electricity producers such as Iberdrola and Enel could also benefit from a cold period, but this could be a double-edged sword because the positive effect depends on long-term contracts with customers who have been able to obtain supplies at lower costs”, continues the manager.
“We can also think of our French masters Rexel and Legrand, who supply a lot of smart electrical systems for the home, which make it possible to heat up better and consume less. With products such as sensors, which facilitate better control of the heating in this. or such a room in the house”, Nicolas Descoqs also explains.
Potential winners in the timber industry
“Marginally, this can also benefit Finnish Stora Enso, which – although this activity is not the most important – also produces construction wood, but wood is a very good heat insulator”, continues the manager.
In the same universe, we find in France the discreet Moulinvest. This company manufactures a wide range of structural and roofing timber for the construction sector as well as solid timber walls for half-timbered houses. Wood processing also generates waste (sawdust and shavings), which is then recycled by the subsidiary Moulin Bois Energie into wood pellets for individual and collective heating.
In addition to Moulinvest, Cogra or Eo2 are also likely to benefit from increased household appeal for wood energy in the face of skyrocketing prices for “traditional” energy, including gas, fuel oil and electricity. We can also mention Poujoulat, another value that can indirectly benefit from a potential increase in energy prices, because this group, founded in 1950, mainly supplies equipment dedicated to heating through the combustion of wood pellets. This company is a leader in Europe in the field of metal chimneys and roof outlets.
For Pierre Laurent, analyst at EuroLand Corporate, in the long term this wood sector benefits from “exciting” prospects because “wood (and its players) should be one of the big winners of the inevitable ecological transition”.
Down jacket manufacturers in sight
“Several stocks can benefit from a cold snap. In the short term, we can think about consumer goods that protect against the cold, such as suppliers of down jackets, so for example Damartex or maybe Moncler”, emphasizes Frédéric Rozier. portfolio manager at Mirabaud France.
Moncler is an Italian company listed in Milan, and specializes in down jackets and ski clothing. This group is often associated with the luxury world with a high operating margin, almost 20% in the first half of the year.
Less glamorous, in France we find Damartex, the parent company of Damart and its anti-cold clothing. With the drop in temperatures, from October the French wanted to anticipate the government’s measures for energy proximity and rush with warm clothes, including the famous Thermolactyl from the Damart brand. This “second skin”, which keeps the heat in, made the Damart brand’s heyday and even seduced Princess Diana, who originated the famous slogan “Cold, me? Never!”.
In the same sector, the Canadian company Canada Goose is listed on the Toronto Stock Exchange.
Renovation and insulation
“In the longer term, households may realize that there are significant needs for the insulation of habitats, which can support specialists in the sector such as Saint-Gobain”, also notes Frédéric Rozier. “We can also think of the Irish Kingspan, which produces energy insulation solutions for especially commercial buildings, offices”, adds Nicolas Descoqs.
In addition to insulation, a cold period can also be an opportunity for households to want to renovate their homes, which is the cornerstone of the strategy of Hexaom, the builder of individual houses. The former Maisons France Confort intends to strengthen its renovation for individuals in a context of hunting for thermal targets. In addition, all the group’s brands must come into tact by generalizing an “energy renovation offer”. In 2025, the group aims to increase the renovation share of its turnover to 30%, against 18% at the moment.
By Sabrina Sadgui and Julien Marion
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