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March 22nd, 2024 | 07:45 CET

BYD, Globex Mining, Mercedes-Benz shares: The energy transition is picking up speed with these companies

  • Mining
  • Commodities
  • Electromobility
  • renewableenergies
Photo credits: Mercedes-Benz Group AG

BYD in China is regarded as innovative and successful with its wide range of models and brands. The Company has become one of the top ten car manufacturers and is the global leader in the production of new energy vehicles (NEVs). In the fourth quarter of last year, BYD even overtook Tesla with over half a million electric vehicles sold. BYD is now pushing further into international markets in order to maintain its growth trajectory. The increasing demand for electrification also means a higher demand for the corresponding raw materials. Globex Mining is well positioned in this regard; with 247 different projects and over 40 years of industry experience, investors benefit from the unbeatable expertise of the experienced management team. Mercedes-Benz leadership has reason to rejoice. The figures from the last financial year are solid, and the salaries of the Executive Board have been generously increased. Who is really picking up speed now?

time to read: 5 minutes | Author: Juliane Zielonka
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , GLOBEX MINING ENTPRS INC. | CA3799005093 , MERCEDES-BENZ GROUP AG | DE0007100000

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview

     

    BYD storms the European electric car market following Tesla's lead

    Elon Musk is leading the way with his Tesla plant in Grünheide, Brandenburg. Companies from abroad are settling in Europe. Now, the Chinese car and battery manufacturer is also following this path.

    Last year, China exported almost USD 40 billion worth of pure electric battery and hybrid vehicles. Most went to Europe, where customers bought almost 5 million electric vehicles in 2023. About 8% of all electric vehicles sold in Europe by mid-2023 came from China, compared to almost zero in 2019. Chinese carmakers have one up on Europeans: experience with mature supply chains and sufficient raw materials for EV production.

    Chinese carmakers benefit from mature supply chains and rapid research and development, allowing them to offer sophisticated products at low prices outside their home market. Analysts at UBS Bank estimate that BYD could produce electric vehicles for around a quarter less than established rivals in Europe. The price difference could diverge even more if the vehicles are produced locally in China. These competitive advantages mean that cars from China cost up to a fifth less than similar models in the EU. If left unchecked, the proportion could rise to 15% by 2025, according to the European Parliamentary Research Service, which wants to impose import tariffs. BYD is struggling with the first signs of oversaturation in its domestic market and is therefore looking for solutions abroad to sell its models. BYD replaced Tesla as the world's leading electric vehicle manufacturer last year.

    Nvidia is also expanding its collaboration with BYD and other Chinese automakers developing self-driving vehicles and AI-powered infotainment technologies. Nvidia will provide the next generation of in-vehicle chips called "DRIVE Thor" to enable autonomous driving and other digital functions. At the GTC developer conference in San José, California, Nvidia Vice President for Automotive Danny Shapiro explains that BYD is also using Nvidia technology to optimize factories and supply chains and develop virtual showrooms. The Chinese are ahead of the competition.

    Globex Mining - The mineral bank as an investment, with over 40 years of expertise and 247 mineral projects

    Smart investors understand that adding commodities to their portfolio can further reduce risk, especially those in demand by leading industrial nations worldwide, for example, to drive the transition to low-carbon production. One company in particular stands out in this context: Globex Mining. The Company, which is listed on the Frankfurt Stock Exchange, boasts a diversified portfolio of exploration, development and license areas in the mid-development phase. Globex Mining has a broadly diversified portfolio of 247 mineral projects with low political risk, mainly concentrated in Eastern Canada, Germany and the US.

    The portfolio includes precious metals such as gold, silver, platinum, palladium, non-ferrous metals (copper, zinc, lead, nickel), specialty metals and minerals (manganese, titanium dioxide, iron, molybdenum, lithium, rare earths and antimony) as well as industrial minerals and compounds (mica, silica, apatite, talc, magnesite, potassium feldspar, pyrophyllite).

    The business model is straightforward: Globex Mining specializes in acquiring mineral properties and projects and their enhancement through exploration and intellectual contributions. The Company generates revenue without burdening shareholders through share dilution. The Company also refrains from taking on debt. With over CAD 20 million in cash, shares and marketable securities, Globex Mining is debt free and well positioned to advance its projects.

    This strategy helps to increase the value of the property portfolio continuously. In addition, income is generated from options, sales and royalties. The strong royalties partnerships that Stoch has established over the past four decades form a solid pillar. Royalties are payments that Globex Mining receives when it grants another company the right to use certain resources or operate on certain properties. Jack Stoch has a total of 75 companies as partners.

    With this company, Stoch has founded a family business. Together with his wife, he holds around 12.4% of the Company. The Board of Directors comprises three experienced geologists and mining and financial experts. His mission is to continuously increase the Company's value for the shareholders. In addition, Jack Stoch, CEO, adds: "An important note is that after 40 years, we have never done a reverse stock split, which means there are currently 55.2 million shares outstanding."

    Mercedes-Benz on an electrification course in Rastatt

    Mercedes-Benz is making progress in its transformation to a CO₂-neutral company. By the end of 2030, the Stuttgart-based company aims to achieve a share of up to 50% of electrified vehicles in the new fleet in Rastatt. The production of compact cars in Rastatt includes combustion engines, plug-in hybrids and electric vehicles. The plant is also the largest employer in the region with around 6,100 employees. Mercedes-Benz produces the A-Class and B-Class, the GLA SUV and the all-electric Mercedes-Benz EQA there. The Company also aims to reduce the CO₂ emissions of its production by 80% by 2030 and to operate all of its production sites with 100% renewable energy by 2039. The new "eCampus" in Untertürkheim will play a central role in this transformation and is scheduled to open in summer 2024.

    Mercedes-Benz Group AG's financial results for 2023 show a solid performance. Thanks to continued cost control, the Company achieved earnings before interest and taxes (EBIT) of EUR 19.7 billion (compared to EUR 20.5 billion in 2022) and sales of EUR 153.2 billion (compared to EUR 150.0 billion in the previous year).

    Mercedes-Benz Cars achieved an adjusted return on sales (RoS) of 12.6%, Mercedes-Benz Vans achieved an adjusted RoS of 15.1% and Mercedes-Benz Mobility an adjusted return on equity (RoE) of 12.3%. Being a member of the Board of Management at Mercedes-Benz pays off: in the 2023 financial year, the eight members of the car manufacturer's Board of Management received a total of almost EUR 53 million in benefits, an increase of 84% compared to the previous year. CEO Ola Källenius is the top earner, whose remuneration has risen from EUR 6.6 million to a total of EUR 12.2 million. He says that if his salary exceeds ten million euros, he will donate part of it - where to remains a mystery.

    At the Annual General Meeting on May 8, 2024, the Executive Board and Supervisory Board will propose a dividend of EUR 5.30 per share (2022: EUR 5.20). This proposal also takes into account the increase in earnings per share due to the current share buyback program.


    BYD has a lot of competition at home and is expanding internationally to build factories outside China, inspired by Tesla's pioneering role. BYD is leveraging its experience to create efficient supply chains, putting it far ahead of its competition. In addition, the Company is working with Nvidia on autonomous driving and AI technology for the latest in-car entertainment needs. Globex Mining offers investors the opportunity to benefit from the increasing demand for raw materials for electrification. The Company has a diversified portfolio of 247 mineral projects and offers long-term investment opportunities. Mercedes-Benz is continuously pursuing electrification and CO₂ neutrality with investments in electrified vehicles and renewable energies. However, the Stuttgart-based company is holding back on promises and intends to offer a maximum of 50% of new models electrically during this decade.


    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.

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    Der Autor

    Juliane Zielonka

    Born in Bielefeld, she studied German, English and psychology. The emergence of the Internet in the early '90s led her from university to training in graphic design and marketing communications. After years of agency work in corporate branding, she switched to publishing and learned her editorial craft at Hubert Burda Media.

    About the author



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