Close menu




February 22nd, 2022 | 10:49 CET

Bayer, Memiontec, Dr. Hönle - Serious threat!

  • Investments
Photo credits: pixabay.com

Water is the basis of all life. We use water for our nutrition, daily hygiene and leisure activities. Water is also a crucial economic factor as an energy source, transport medium and raw material. But access to clean drinking water is not a matter of course; even today, 1 billion people are denied it. According to various experts, this situation will soon deteriorate dramatically. By 2025, 3 billion people could be living in countries with severe water shortages. Therefore, water scarcity is an urgent issue for the future of humanity.

time to read: 4 minutes | Author: Carsten Mainitz
ISIN: BAYER AG NA O.N. | DE000BAY0017 , Memiontec Holdings Limited | SGXE56008290 , DR. HOENLE AG O.N. | DE0005157101

Table of contents:


    Bayer - Pharma top, Agri flop?

    Roughly speaking, the German life science group is active in the fields of health care and food, and this is reflected organizationally in three segments. In its top-selling Pharmaceuticals Division, Bayer focuses on researching, developing, and marketing innovative specialty drugs. These have significant clinical benefits, particularly in the therapeutic areas of cardiovascular, oncology, gynecology, hematology and ophthalmology. Consumer Health markets 170 branded products in the areas of skin, nutritional supplements and pain management, among others.

    The third business unit is Crop Science. Here the Group provides its customers, who are farmers, with tailored solutions for seeds, traits, crop protection and digital tools. As one of the world's leading agricultural companies, the Germans are also working on sustainable, water-saving solutions. The Crop Science business unit can certainly be viewed positively in the long term.

    However, the cleanup resulting from the acquisition of the US company Monsanto years ago is still weighing on the Company. Several lawsuits are pending in the US in connection with alleged carcinogenic products. It had a significant impact on the figures for the past fiscal year, with analysts forecasting a profit of just under EUR 700 million. Things are expected to pick up again significantly in the current fiscal year. The experts predict a profit of EUR 4.6 billion, which brings the 2022 P/E ratio down to a moderate 11. The dividend yield is 4%. Analysts believe the share has an average upside potential of 20%.

    Memiontec - Pre-programmed growth

    With over 20 years of market presence, Memiontec is an established expert in Asia in freshwater and wastewater management. The Company also has a high level of expertise in patented membrane ion exchange technology treatment processes. Recently, the Singapore-based Company announced that freshwater sales have now begun following the completion of the first phase of the Build-Own-Operate-Transfer (BOOT) project in the Indonesian megacity of Pekanbaru.

    The plant currently has a capacity of 200 LPS (liters per second). It is to be increased initially to 500 LPS in the further course involving the rehabilitation and modernization of the existing water treatment plant. The contract with the national water authority PDAM is designed to run for 25 years, thus ensuring continuous cash flows.

    The second BOOT project in the Indonesian capital Jakarta ("Hutan Kota") has already reached the second expansion stage with 450 LPS. The Company is pursuing further projects - mainly in the form of private-public partnership (PPP) projects with municipalities and industrial companies - in China, which is the subsidiary's third location after Singapore and Indonesia. After a share price multiplication, the Company is currently valued at SGD 180 million, equivalent to EUR 118 million. In view of the high order backlog and good prospects, the shares should have further potential.

    Dr. Hönle - Corona profiteer and still losses?!

    The shares of the specialist for UV technology have been on a downward trend since last summer. The downward movement has accelerated again significantly in recent weeks. In the past 12 months, the share lost 43%, whereas SDAX and TECDAX lost only 13% and 6%, respectively. The Bavarians are among the world's leading suppliers of industrial UV technologies. In the wake of the Corona pandemic, the Company attracted attention with its disinfection systems and devices. The devices inactivate germs, viruses, bacteria and mold spores through UVC irradiation. The solutions' fields of application are diverse, including surface disinfection or water disinfection.

    At the end of November last year, the Company shocked with an impairment loss at a subsidiary. In Q4, goodwill had to be reduced by EUR 3.4 million and other items on the assets side of the balance sheet by EUR 4.1 million, as the outlook for the business area had deteriorated. Adjusted operating profit (EBIT) of around EUR 8 million was forecast for the 2020/2021 financial year. Taking into account the extraordinary impairment charges, the operating result will only amount to around EUR 0.5 million. The Company will therefore be in the red below the line.

    Last week, Dr. Hönle specified the outlook for the current financial year with sales revenues of EUR 130 to 140 million and EBIT of EUR 14 to 17 million. The statements on sales of air sterilization equipment were disappointing. In the first three months of the current financial year, Dr. Hönle only achieved sales revenues in the amount of EUR 5.2 million. That means the Company sold fewer systems than originally assumed, despite existing subsidy programs for air purifiers in schools and daycare centers. Sales for the year as a whole are also forecast to be below the previous year's figure. The stock has not yet found its bottom.


    Water is too important an issue to ignore. The worsening (drinking) water shortage can be countered, among other things, with innovative or suitable countermeasures. Memiontec has successfully positioned itself in markets with high potential and additionally benefits from long-term contracts with the public sector. In addition, the share is a "pure-play" in terms of water management. As a global agricultural company, Bayer also reflects the investment theme, but other business areas predominate in the overall performance of the Group. At Dr. Hönle, disappointment dominates in relation to air disinfection systems, which is likely to further weigh on the share of the actual Corona winner.


    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 news.financial. 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 Nico Popp on March 10th, 2026 | 07:15 CET

    Valuation anomaly in the drone sector: Solid returns with Volatus Aerospace, Hensoldt, and DroneShield

    • Drones
    • Defense
    • aerospace
    • Investments

    The global security architecture has been facing a turning point since well before the outbreak of the conflict involving Iran. Developments on NATO's eastern flank show that the dominance of heavy weapon systems is increasingly being challenged by low-cost, unmanned aerial vehicles. In this new reality, a drone costing USD 500 can destroy a battle tank worth USD 10 million. This development is forcing the defense industry to rethink its approach. Conventional air defense systems are often overwhelmed by the sheer number and low radar signature of enemy drones. Innovative solutions are needed to detect, assess, and neutralize threats. So-called interceptor drones for the targeted neutralization of hostile aerial targets are becoming the focus of attention for the military and procurement authorities. Hensoldt, DroneShield, and Volatus Aerospace have positioned themselves as innovative solution providers in this highly specialized niche. We show where the most attractive opportunities lie for investors and pay particular attention to an up-and-coming company from Canada.

    Read

    Commented by Nico Popp on March 9th, 2026 | 07:50 CET

    Africa's hardest currency: New perspectives from Barrick Mining, Compass Gold, and Desert Gold

    • Mining
    • Gold
    • Commodities
    • Investments

    A noticeable shift is currently taking place in African mining, as mineral resources are increasingly being viewed as the continent's hardest currency. This trend was highlighted at the African Mining Indaba in Cape Town in February, where the concept of a "Bank of African Settlements" was discussed. The stated goal of this initiative is to establish mineral resources as bankable assets to reduce dependence on volatile fiat currencies such as the US dollar. For many African nations, this is a direct response to the harsh reality that some local currencies have depreciated by as much as 900% against the US dollar over the past two decades. At the same time, market data supports this trend, with foreign central banks' gold reserves exceeding their holdings of US government bonds for the first time since 1996. Combined with growing efforts toward political self-determination and the expansion of reliable infrastructure, this shift is opening up attractive opportunities for investors. In this environment, industry heavyweight Barrick Mining is consolidating its industrial base in Mali, while emerging explorers such as Compass Gold and Desert Gold are actively searching for new deposits.

    Read

    Commented by Armin Schulz on March 9th, 2026 | 07:20 CET

    Gold market heats up: Newmont, Lahontan Gold, and Agnico Eagle in the spotlight

    • Mining
    • Gold
    • Commodities
    • Investments

    The gold market is experiencing a historic shift in 2026. While geopolitical crises and a weakening dollar are driving the price above USD 5,300, central banks are massively increasing their reserves. This combination of global uncertainty and strategic demand is giving the precious metal new momentum. At the same time, central banks are signaling further interest rate cuts, which is giving gold an additional boost as an asset class. In this environment, producers are coming into focus, led by industry leader Newmont, promising explorer Lahontan Gold, which is on its way to production, and stable producer Agnico Eagle.

    Read