Close menu

May 24th, 2022 | 12:21 CEST

Altech Advanced Materials, Varta, Mercedes - This way!

  • Electromobility
  • Battery
Photo credits:

The latest data from the Federal Statistical Office speak a clear language. E-cars are increasingly in demand. Around 90% of German e-car production is exported. "Made in Germany" therefore still scores points. The performance of the batteries, adequate infrastructure and the availability of essential raw materials such as lithium are important parameters for rapid market penetration. Innovations always remain the trump card. Germany certainly doesn't have to hide in this respect.

time to read: 3 minutes | Author: Carsten Mainitz

Table of contents:

    Uwe Ahrens, Director, Altech Advanced Materials AG
    "[...] We know exactly what we are doing and are implementing what we consider to be a proven technology in an industrially applicable and scalable way. [...]" Uwe Ahrens, Director, Altech Advanced Materials AG

    Full interview


    Altech Advanced Materials - Pre-feasibility study underlines great potential

    The results of the pre-feasibility study (PFS) for the planned plant for ceramic coating of anode composite material in Schwarze Pumpe, south of Cottbus, have given the share a significant boost to date. The market capitalization of the micro-cap, currently just under EUR 7 million, is offset by a much higher potential value.

    The Heidelberg-based company develops innovative processes to make batteries significantly more powerful. The nanocoating of battery materials with high-purity aluminium oxide and an enrichment of silicon can prevent the deposition of lithium particles on the electrodes. The problem of standard processes that lead to a loss of capacity after the first charge is thus eliminated.

    The Company expects to develop batteries with 30% higher energy density and improved battery life using the ceramic-coated anode composite material. This technology could prove to be a game-changer.

    According to the PFS, the project's pre-tax net present value (NPV) is around EUR 420 million! That puts the value of Heidelberg's ownership stake of 25% at around EUR 105 million. The high profitability is also reflected in an internal rate of return (IRR) of 40% and an investment payback period of just 3.1 years. Ten thousand tons per year (TPY) can be produced at total production capacity. On average, the Company expects an annual operating profit (EBITDA) of around EUR 52M.

    In view of the technological potential of the Altech solution and the high expected return, the valuation discrepancy between stock market value and project value should be significantly reduced in the medium term.

    Varta - Significant recovery forecast for the second half of the year

    After an opening quarter marked by the Ukraine war and the long-term consequences of COVID-19, in which revenues and operating income fell, the southern German company prepared the investment community for a problematic Q2. For the second quarter, the Company has forecast revenues of between EUR 195 million and EUR 205 million and adjusted EBITDA of between EUR 34 million and EUR 38 million.

    The group expects new product launches from customers such as Samsung and Apple in the second half of the year, which should significantly boost demand for lithium-ion button cells for wireless headphones. For this reason, Varta confirmed its guidance for the full year with consolidated sales of between EUR 950 million and EUR 1 billion, corresponding to growth of up to around 10%.

    Berenberg and JPMorgan formulate a price target of EUR 95 for the share certificates, which results in a potential of around 20%. At EUR 3.2 billion, the Company is thus valued at a good three times its expected sales in 2022. According to average analyst expectations, the 2022 P/E ratio is a sporty 30 and drops to 25 in the following year. More visibility regarding the e-mobility business, i.e. the planned production of high-performance batteries, should help the share price performance.

    Mercedes - "Class instead of mass"

    By spinning off its car and transport division (Daimler Truck Holding) a few months ago, Mercedes Holding is focusing on its strategy. The group wants to bring Mercedes to the fore as a luxury brand. After all, in times of semiconductor shortages and supply chain disruptions, price increases in the high-priced segment can be passed on unproblematically to the affluent clientele.

    But the topic of e-mobility is also a strategic cornerstone. The Company already announced its intention to push in this area last year. The foreign trade data of the German automotive industry support these plans. The Federal Statistical Office recently announced that about 90% of the approximately 328,000 e-cars produced in Germany were exported, worth EUR 12.6 billion. The United Kingdom, the United States and Norway saw the highest demand.

    Investors who joined the Company 12 months ago enjoyed a dividend payment of EUR 5 per share certificate in April. However, the share price has not moved on the bottom line. Analysts believe the share has an average upside potential of a good 40%. With a P/E ratio of 5 to 6 for the current and the next fiscal year, the Company's valuation can be classified as moderate.

    E-mobility solutions made in Germany - that is what the three companies mentioned stand for. Mercedes and Varta have formulated ambitious goals. Altech could turn the industry upside down with its innovations. The share price should then be at a completely different and much higher level.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.

    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

    Related comments:

    Commented by Stefan Feulner on June 7th, 2023 | 08:45 CEST

    BYD, Globex Mining, First Hydrogen - Breakthrough results

    • Mining
    • RareEarths
    • Hydrogen
    • Electromobility
    • fuelcell

    Despite all the prophecies of doom, the world's stock markets are continuing their upward trend; neither the strict monetary policy of the central banks nor the geopolitical uncertainties have slowed them down so far. Among individual stocks, several companies have reported positive surprises in recent weeks, which should lead to further price increases in the long term. Due to the general correction in recent months, there are attractive entry opportunities, especially in the technology and mining sectors.


    Commented by André Will-Laudien on June 6th, 2023 | 07:45 CEST

    Climate Crisis: Copper is the new oil! BYD, Orestone Mining, Ford, Nio - 100% acceleration in Greentech

    • Mining
    • Copper
    • Electromobility
    • GreenTech

    At the beginning of May, analysts at Bank of America declared a new "super cycle" for basic and raw materials. What they mean by this is that a whole series of important materials will be in great short supply for years. The prime example is the red metal copper. The price of the industrial metal has almost doubled in the past 12 months. It is currently quoted at around USD 8,350 per tonne, not far from the historic high of USD 10,750. During the pandemic, the metal briefly fell to USD 4,500. Currently, however, forecasts are once again pointing upwards. Bank of America expects the price to more than double again to around USD 18,000 in the next three years. We take a look at some hot stocks.


    Commented by Nico Popp on June 5th, 2023 | 07:30 CEST

    Headwinds for e-car manufacturers - What matters now: BYD, Volkswagen, First Phosphate

    • Mining
    • phosphate
    • Electromobility

    With strong acceleration, a connected cockpit and lots of rear-seat amenities - these are the features that score points for e-cars. However, investors are taking a closer look. An article in Handelsblatt reveals that some carmakers are not faring well in the favour of sustainably-minded investors. We look at why that is and why shareholders should consider it - an analysis of Environmental, Social, and Governance (ESG) in the automotive industry.