The Steppe Eagle OEIC Ltd on SMA Solar Technology AG
Thesis
SMA Solar is described as a long-established German solar inverter company that has survived multiple industry cycles and retained a strong position in Europe. The fund highlights more than EUR 1.5 billion of revenue, long-term contracts in its home market, low debt and enough cash to weather difficult periods without diluting shareholders. The investment case is now a recovery story after profitability was lost, with the fund having bought at EUR14.21 in late 2024 and taken substantial profits as the shares later rose. A small position is retained for further recovery upside. P(1) Harry Qelm Baabsman Steppe… P(1) Harry Qelm Baabsman Steppe…
“On the downside, the profitability has been lost, so only the ongoing recovery could fix it.”
Key risks
- Profitability has been lost and requires an ongoing recovery
- The company previously lost the North American inverter market