May 3rd, 2022 | 11:48 CEST
BYD and Altech with strong news: Hope for BioNTech shares?
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"[...] Nickel, therefore, benefits twice: firstly from its growing importance within batteries and secondly from the generally growing demand for such storage. [...]" Terry Lynch, CEO, Power Nickel
Altech: On the way to becoming a game-changer
Altech Advanced Materials is certainly the hot stock of this article, but all the more exciting. The Heidelberg-based company is young, and its market capitalization is only around EUR 7.5 million. But Altech could shake up a billion-dollar market with its innovative approaches to battery optimization. The Company is planning to build a production plant for the ceramic coating of anode material for the production of lithium-ion batteries. With the plant in Saxony, the Company would enter the mass production of Silumina AnodesT. Silumina AnodesT is designed to significantly increase the performance and service life of lithium-ion batteries. The production capacity of 10,000 tons per year is expected to correspond to a sales potential of around EUR 153 million. With total production costs of around EUR 101 million, EBITDA of around EUR 52 million would be possible. This is the result of a preparatory profitability study (PFS). Based on these attractive profitability forecasts, Altech has already started the construction of the pilot plant. A further feasibility study is also underway.
"Our research and development results to date, together with the pre-feasibility study results, demonstrate the enormous technological and economic potential of our novel anode composite material and the targeted production in Schwarze Pumpe. We are convinced that this is a breakthrough technology for the future of lithium-ion batteries and can give an enormous boost to European battery technology. Silumina AnodesT has the potential to be a game-changer in battery performance," says Uwe Ahrens, CTO of Altech Advanced Materials. The pilot plant is expected to be ready by the end of this year and produce around 120 kg of Silumina AnodesT per day. These batches of the coated anode material will then be made available to various battery and car manufacturers for testing and possible certification. Further details on Altech's technology can also be found in a detailed study on researchanalyst.com researchanalyst.com/en/report/altech-advanced-materials-better-batteries-for-e-cars. The analysts already saw game-changer potential a few months ago.
BYD: Convinces analysts and customers
An Altech customer in the future could also be BYD. The Company is the largest Chinese manufacturer of electric cars and also produces lithium-ion batteries itself. The Company recently announced that it would no longer produce pure combustion engines but only plug-in hybrids and pure electric cars. BYD is selling more and more of these: in the first quarter of 2022 the Company grew significantly. Sales increased by more than 60%, and profits exploded by 241%. Subsequently, the share price was able to end its weak phase and analysts were also satisfied. Thus, Daiwa Capital Markets still considers it realistic that BYD can sell 1.5 million units in the current year. In the first quarter, with 286,329 New Energy vehicles, it was at least 400% more than in the same period of the previous year. The analysts' price target for the BYD share is EUR 42.30, significantly above the current level of around EUR 27.
BYD no longer sells only compact cars. The Company reported that the 200,000th vehicle in the Han sedan family rolled off the production line over the weekend. It is the first sedan from the Chinese brand priced above 200,000 yuan (USD 30,300) to reach the milestone, the Company said. The BYD Han was originally launched in July 2020 and will be offered in all-electric and plug-in hybrid versions. A recently offered limited edition of the Han already had 48,136 orders within just six hours of its launch.
BioNTech: New momentum from South Africa or on May 9?
The BioNTech share could urgently use positive news. The positive comments from Berenberg were ignored - the analysts see a price target of USD 350. But the focus is currently on low vaccination activity in Europe. In Germany, for example, a total of around 118,000 doses were administered last Thursday. In December 2021, the figure was often over 1 million per day. Denmark has even suspended vaccinations. Accelerating vaccination momentum is more likely to return in the fall. However, there are signs of a fifth wave in South Africa due to two new Omicron variants. Further details are not yet known. China ordering from BioNTech because of the rising infection numbers might make sense from a medical point of view, but even optimists think this scenario is wishful thinking. There could be new impetus on May 9, 2022. That is when BioNTech will report on its operating performance for the first quarter of 2022.
The mixed global situation is likely to remain challenging for the time being. But BYD is becoming more of an electric car pure-play, which could help even in a difficult environment. Altech seems to be on the right track. If it succeeds in convincing a battery or car manufacturer of its technology, a revaluation of the stock would be very likely. In the case of BioNTech, the negative aspects seem to be "seen" more by investors at the moment. Perhaps this will change on May 9?
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