BioNTech, Memiontec, Bayer - Catastrophic conditions

Memiontec - Strongly growing business

Global water consumption continues to rise relentlessly. Due to changing consumption habits, population growth, and ongoing industrialization, it is about six times higher than in the last century and increases by 1% per year. According to scientists, global warming is causing this precious resource to become increasingly scarce and its quality to deteriorate.

Despite mechanization, too little has happened in the water management sector. Up to 90% of all wastewater worldwide is discharged untreated, polluting the environment and drinking water supplies. One of the few companies working on this issue for decades is Singapore-based Memiontec Holdings, listed on the stock exchange. The stock market value of the group, which is listed not only in Singapore but also in Frankfurt, is around EUR 110 million. In addition to full order books of almost EUR 60 million, Memiontec offers its shareholders an annual dividend of 25%, expected to grow further in the coming years.

For around 20 years, the pioneer has been developing complete water and wastewater management solutions in China, Indonesia, and Singapore. State institutions, such as the infrastructure developer Jakpro and Indonesia's national water authority PDAM, are among the Company's customers, as are private companies from a wide range of Asian industries. The complete value chain is offered with a four-pillar model, significantly increasing the economies of scale.

In addition to providing total solutions, including maintenance contracts and the sale of modular and customized systems and equipment, the build-own-operate-transfer (BOOT) and transfer-own-operate-transfer (TOOT) segments are the long-term profit drivers. Through cooperative agreements, most of which run for more than 25 years, with public and private partners, investments are made in the maintenance of water treatment infrastructure. In addition to revenues from operations, maintenance and services, Memiontec generates long-term and recurring revenues through the sale of purified water.

Memiontec plans to grow further by entering into additional cooperative agreements. Acquisitions are also possible at any time, according to management. In addition, the Company plans to expand into China. After a brief pause in the area around EUR 0.40, the share was able to turn upwards again with greater volume. Given the major issue of water scarcity, it is almost imperative to take a closer look at this Company.

BioNTech - Breakout is imminent

The share of vaccine manufacturer BioNTech also had to consolidate. After an interim high at USD 373.58 at the end of November, it fell steeply to the breakout level at USD 260. Since then, the chart has formed a rising triangle, which is likely to generate a buy signal if it is exceeded at USD 289.82 and should result in a run-up to the November high.

Operationally, everything still seems to be going well. In addition to the new Minister of Health, Karl Lauterbach, the European Union also took inventory and saw greater demand due to the expected increase in infections due to the Omicron variant. Thus, another 20 million doses of the Comirnaty vaccine have been ordered. "These doses are in addition to the 195 million doses already planned from BioNTech-Pfizer. That brings the total number of deliveries in the first quarter to 215 million," the EU Commission said.

Bayer AG - Light and shadow

Glyphosate continues to weigh on Bayer AG's fortunes. Thus, the Leverkusen-based Company is threatened with a capital investor test case worth billions of euros. The law society Tilp, which represents over 250 institutional investors, lets the higher regional court Cologne determine whether Bayer concealed substantial risks with the assumption of the US seed producer Monsanto. As a result, the investors consider themselves deceived and are demanding damages, with claims amounting to more than EUR 1 billion. Bayer rejects the claim and emphasizes that the Company has "fulfilled its disclosure obligations."

In addition to the rat tail that Bayer has been dragging behind it since the Monsanto acquisition, there are also positive headlines. The diabetes drug Finerenone is nearing EU approval. The share price has recovered somewhat since its lows at EUR 43.90 but is currently facing significant resistance at EUR 47, making it rather unattractive.

Corona is the predominant topic in society. Problems, such as water scarcity which will increase significantly in the coming years, are forgotten. Memiontec has been developing systems for water treatment for over 20 years. BioNTech will be interesting for investors in the short term, while there is currently no urgent need to invest in Bayer.