September 27th, 2024 | 07:10 CEST
Better than Plug Power? Stocks of Siemens Energy and Altech Advanced Materials are taking off!
Are there new stars in the energy transition? Plug Power and Nel have likely squandered their status in recent years. Both companies are unable to get a grip on their losses, and growth is weakening. Now, Plug Power is trying a new approach. In contrast, Altech Advanced Materials is just getting started. The stock of the German battery hopeful gained 20% in the past week alone. The reason: the marketing of the revolutionary solid-state battery is picking up speed. The Altech battery is expected to solve a critical problem for renewable energy and holds billion-dollar potential. After the strong performance in the current year, does the Siemens Energy share still have potential? Will it reach a new annual high with its old CEO?
time to read: 4 minutes
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Author:
Fabian Lorenz
ISIN:
SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0 , ALTECH ADV.MAT. NA O.N. | DE000A31C3Y4 , PLUG POWER INC. DL-_01 | US72919P2020
Table of contents:
"[...] Silumina Anodes® is a ceramic-coated graphite/silicon anode composite material that we plan to produce in Schwarze Pumpe, Saxony. Here, we aim to supply manufacturers of batteries for e-cars with an application-ready drop-in technology that is low-cost, high-performance and safe. [...]" Uwe Ahrens, Direktor, Altech Advanced Materials AG
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
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Altech Advanced Materials: A triple-digit million sum beckons
With a price jump of over 30% to around EUR 4, investors are celebrating the latest milestone at Altech Advanced Materials. Is the stock still worth buying? There are still good reasons to consider a purchase. This is because the market capitalization is only around EUR 30 million, and so far, only the price slide since July has been made up. To reach the level from the beginning of the year, the share price of the German battery hopeful would need to double again. The all-time high is more than 200% away. But what is the reason for the price explosion?
In Germany, Altech Advanced Materials is working with the Australian parent company and Fraunhofer on next-generation battery technology. Now, a first LOI with a volume in the triple-digit million range has been signed. The Schwarze Pumpe industrial park intends to purchase CERENERGY® battery packs with a total energy storage capacity of 150 MWh. The first 30 units of 1 MWh GridPacks are to be delivered by Altech in 2027. With Altech's CERENERGY® battery packs, the Schwarze Pumpe industrial park aims to switch its energy supply entirely to renewable sources. The batteries solve a major problem of the energy transition. Wind and solar energy can only replace coal and gas if they become base load capable. Altech's battery technology uses common salt and nickel and is free of lithium, cobalt, graphite, and copper. This finally makes the storage of renewable energy affordable.
The production plant for CERENERGY® battery packs for grid storage solutions with a capacity of 120 MWh per year is also to be built in Schwarze Pumpe. The CERENERGY® sodium chloride solid-state battery, developed jointly with the Fraunhofer Institute for Ceramic Technology (IKTS), is fire and explosion-proof and has a lifespan of more than 15 years. In the meantime, the first battery packs have been manufactured in the Fraunhofer IKTS pilot plant in Thuringia and have passed the test with flying colors.
Siemens Energy: To a new annual high with the old CEO?
Siemens Energy shows what is possible once a stock has taken off. In the current year alone, the stock has gained over 170%. In 2023, it was still at rock bottom. Although growth is currently coming more from the fossil fuel power plant and grid solutions business, investors do not seem to mind. After convincing quarterly figures, CEO Christian Bruch's contract has now been extended until 2030.
Joe Kaeser, Chairman of the Supervisory Board of Siemens Energy, commented: "Christian Bruch has led Siemens Energy through turbulent times during his first term. What began with the implementation of the carve-out of Siemens Energy under difficult conditions continued seamlessly with geopolitical turbulence in the heart of Europe. Christian Bruch and his team have raised the conventional business to new levels and stopped the existential decline of the wind business through their unparalleled commitment. The Supervisory Board is pleased to actively support Siemens Energy into the age of global electrification with Christian Bruch at the helm."
Christian Bruch, CEO of Siemens Energy, commented: "I would like to thank the Supervisory Board for the trust they have placed in me. It is a great honour for me to be able to work for the Siemens Energy team as CEO. My goal remains to continuously increase the profitability and value of Siemens Energy. This means, first and foremost, consistently implementing our priorities: profitable growth, turning around the wind business, and further strengthening our balance sheet."
Analysts have traditionally been cautious about Siemens Energy and trailed behind the rally this year. The latest example of this is Jefferies. The analysts raised their price target from EUR 27 to EUR 31 this week and maintained a "Hold" recommendation. They remain reserved in their outlook despite stating that their revenue forecasts for the upcoming quarterly results would be above consensus estimates.
Plug Power: Will leasing bring the turnaround?
While investors are snapping up Altech Advanced Materials and Siemens Energy shares, they are steering clear of Plug Power. The stock has lost over 50% of its value this year and is trading below USD 2. The hydrogen pioneer is simply unable to get a grip on its losses. In order to be able to possibly return to profitability in the medium term, the Americans are now turning on leasing. To this end, Plug Power wants to establish a platform for financing equipment leasing and aims to raise over USD 150 million through a combination of debt and customer financing solutions.
In a first step, Plug entered into three separate sale-and-leaseback transactions with GTL Leasing totaling approximately USD 44 million. Plug CFO Paul Middleton commented: "It provides immediate capital with a path to additional capital in the near term, supports our growth in green hydrogen, and is aligned with Plug's financial and operational objectives." In addition, the Company wants to offer leasing as a financing solution to customers in order to boost its own sales.
The fact that Plug Power has to sell its equipment and lease it back is a rather bad sign. Whether sales can be boosted with the leasing platform is certainly questionable. A purchase of the share is not compelling at present. On the other hand, things are looking up for Altech. The current LOI is definitely a milestone and could be the starting signal for a stronger price rally. The Siemens Energy share currently seems to be taking a break, which is a healthy development.
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