08. September 2021 | 13:18 CET
BYD, Aspermont, Salzgitter AG - Extreme surge in demand
The improved mood in the economy and the reviving business cycle brought companies record results in the second quarter. Above all, electric car manufacturers shone with significantly rising sales figures. In June alone, the number of new registrations in Germany climbed 311% year-on-year. The switch from combustion engines to electric cars is only just beginning. The percentage of battery-powered vehicles on German roads is just 12%.
time to read:
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , ASPERMONT LTD | AU000000ASP3 , SALZGITTER AG O.N. | DE0006202005
"[...] In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. [...]" Karim Nanji, CEO, Marble Financial
Huge boom in August
Warren Buffett will be pleased, as he has been invested in the BYD technology group for years. The Chinese Company reported exploding sales figures for pure electric vehicles in August. In total, the delivery of the New Energy Vehicle amounted to 61,409 units. In the previous month, there were only 50,492 vehicles. Compared with August 2020, this represented a fourfold increase. Here, 15,283 e-cars rolled off the assembly lines.
It is already well known that the chip shortage is hitting the automotive sector in particular. To circumvent this, the subsidiary BYD Semiconductor is investing in the Chinese semiconductor Company Jinan Energen Semiconductor, which was founded in 2018. For a total of 77.75%, the Build Your Dream Company is paying around USD 775 million. Energen Semiconductor develops and produces power devices made of silicon and silicon carbide, increasingly used for battery-powered electric cars. The Company also has customers in the renewable energy, IT, telecommunications and consumer electronics industries.
BYD's success story continues. The stock is about to reach a new all-time high.
Next milestone at Aspermont
A success story is also being written in Australia at the moment. As a publishing house with historical publications, the Company transformed into an innovative digital company and the leading media service provider for the global resource industry. Through a new joint venture with partners Spark Plus and International Pacific Capital, Aspermont, which holds 44% of the joint venture, is rising to become a fintech company. The focus here is on providing a platform to raise capital in the ASX market.
The digital Company will benefit from its database of over 7.5 million registered contacts from the mining, energy and agriculture segments, which has been filled over decades and can be monetized in the startup. In addition to the financing platform, the XaaS model programmed in-house is also to be expanded further. In addition to industry news, customers are to be offered premium services such as research, data and live or virtual events on an individualized basis. Payment is via a multi-level, personalized flat-rate model. In addition, expansion into other countries is on the agenda, the most critical step being the move into China.
CEO Alex Kent sees the greatest economies of scale in the Middle Kingdom. So far, Chinese users account for just 7% of the total 4 million active users on the platform. The Aspermont share price has been moving sideways for several months, hovering around the EUR 0.02 mark. Thus, the stock's market capitalization, which is traded in Sydney and Frankfurt, amounts to EUR 39.35 million. In their current coverage, the analysts of GBC Research assigned a buy rating with a price target of EUR 0.056.
The good price and demand development prompted Germany's second-largest steel producer to raise its forecasts for the full year for the third time. Whereas a profit of between EUR 400 million and EUR 600 million had been expected, Salzgitter AG now anticipates a figure of between EUR 600 million and EUR 700 million. That would mean the best pre-tax result in more than a decade. With a gain of just under 4%, the share is currently trading at EUR 32.60. Interested investors should buy.
The sales figures of the electric car manufacturers are growing month by month. BYD set a record in August and is worth buying at the current level, just like Salzgitter AG, which scored points by raising its forecasts. Due to the startup of a fintech venture, Aspermont is on the verge of a revaluation.