Original-Research: DWK Deutsche Wasserkraft AG (von Parmantier & Cie. GmbH): 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.



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Die vollständige Analyse können Sie hier downloaden: DWK_Deutsche_Wasserkraft_PCR_Initialstudie_2025_07_08_EN_final

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