Parmantier & Cie. GmbH: DWK Deutsche Wasserkraft AG | Rating: Buy

Einstufung von Parmantier & Cie. GmbH zu DWK Deutsche Wasserkraft AG

Unternehmen:	DWK Deutsche Wasserkraft AG
ISIN:	DE000A2AAB74
Anlass der Studie:	Start of Research
Empfehlung:	Buy
seit:	08.07.2025
Kursziel:	5,00 €
Kursziel auf Sicht von:	12 month
Letzte Ratingänderung:	New
Analyst:	René Parmantier, Benedikt Krämer

Economy meets ecology: Small hydro run-of-river power plants (RPP) ensure green returns without wind or solar lulls

DWK Deutsche Wasserkraft AG (DWK) is the only listed company in Germany that pursues a 'pure play' hydropower approach - from the development phase through the construction phase to the operating phase. Run-of-river power plants (RPPs) have various advantages over other forms of renewable energy: 1) comparatively constant energy production (24/7) 2) low impact on nature (i.e. faster approval procedures) 3) maximum energy efficiency/efficiency and 4) good planning capability. The project phase in particular promises high returns for RPPs (IRR >21%) and DWK benefits from functioning markets for operational RPPs and ready-to-build sites. Based on our DCF valuation, the share has a fair value of €5.00.

Market environment: Norway not only offers optimal geographical conditions for RPPs, but also a stable energy market (with lower price fluctuations than in neighbouring countries), comparatively fast approval procedures and a low tax burden (22%). Interconnectors ensure that Norwegian energy producers can benefit from volatile electricity prices in Europe due to the growing share of renewable energy (PV/wind). The AI revolution and growing demand for data centres are driving medium-term energy demand in Europe. Within renewables, hydropower is the most reliable energy source - also in terms of returns. 

Specific strengths: 1) The partnership with NordVest utilises specific LWKW expertise and generates uncorrelated returns from AM fees. 2) The current pre-development pipeline represents a total output of over 260 GWh. 3) DWK has an experienced management team with an impressive track record (including 122 deals in Norway alone with a volume of €1.1bn)

Challenge: In order to realise existing potential and transfer as much of the existing pipeline as possible to the construction phase, DWK needs further financing according to our model calculations.



DISCLAIMER
Legal Notice

This research report ('Investment Recommendation') was prepared by Parmantier & Cie. Research, with contributions from Mr. Parmantier and Mr. Krämer, and is distributed solely by Parmantier & Cie. Research. It is intended only for the recipient and may not be shared with other entities, even if they are part of the same corporate group, without prior written consent. The report contains selected information and makes no claim to completeness. The investment recommendation is based on publicly available information ('Information'), which is considered correct and complete. However, Parmantier & Cie. Research does not verify or guarantee the accuracy or completeness of this information. Any potential errors or omissions do not create liability for Parmantier & Cie. Research, which assumes no liability for direct, indirect, or consequential damages.

In particular, Parmantier & Cie. Research accepts no responsibility for the accuracy of statements, forecasts, or other content in this investment recommendation concerning the analyzed companies, their subsidiaries, strategies, economic conditions, market and competitive positions, regulatory frameworks, and similar factors. While care has been taken in preparing this report, errors or omissions cannot be excluded. Parmantier & Cie. Research, including its partners and employees, accepts no liability for the accuracy or completeness of statements, estimates, or conclusions derived from the provided information in this investment recommendation.

To the extent this investment recommendation is provided as part of an existing contractual relationship (e.g., financial advisory services), Parmantier & Cie. Research's liability is limited to cases of gross negligence or intentional misconduct. In cases of breach of essential obligations, liability is limited to simple negligence but is restricted to foreseeable and typical damages in all cases. This investment recommendation does not constitute an offer or solicitation to buy or sell securities.

Partners, managing directors, or employees of Parmantier & Cie. Research or its subsidiaries may hold responsible positions, such as supervisory board mandates, in the companies mentioned in this report. The opinions expressed in this investment recommendation may change without notice and reflect the personal view of the research analyst. Unless otherwise stated, no part of the research analyst's compensation is directly or indirectly related to the recommendations or opinions contained in this report. All rights reserved.



 

Die vollständige Analyse können Sie hier downloaden: DWK_Deutsche_Wasserkraft_PCR_Initialstudie_2025_07_08_EN_final

Kontakt für Rückfragen:
Parmantier & Cie. Research
Hungener Straße 6
60389 Frankfurt am Main
E-mail: info@parmantiercie.com