Close menu




August 31st, 2022 | 13:35 CEST

BYD, Kleos Space, Bayer - Great opportunities in laggards

  • Space
  • Electromobility
  • Pharma
Photo credits: pixabay.com

Although stock markets continue to correct, driven by geopolitical uncertainties and interest rate fears, some sectors have defied the generally adverse market conditions in recent weeks. For example, renewable energy stocks such as Plug Power more than doubled on the back of Joe Biden's climate change package. However, most companies from other sectors remain at discounted levels despite excellent prospects, which should offer investors good long-term entry opportunities.

time to read: 4 minutes | Author: Carsten Mainitz
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , KLEOS SPACE CDI/1/1 | AU0000015588 , BAYER AG NA O.N. | DE000BAY0017

Table of contents:


    Terry Lynch, CEO, Power Nickel
    "[...] 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

    Full interview

     

    Bayer AG - Chance of a sustainable bottoming out

    Shareholders of the pharmaceutical and agricultural giant have had to endure a rollercoaster ride in the current stock market year. The share price of the Leverkusen-based Company rose from EUR 42.50 at the beginning of January to EUR 67.99 in mid-April. Uncertainties surrounding the glyphosate dispute caused the share price to fall back into the EUR 50 range. Nevertheless, the bottom line is a positive performance of over 11%, contrary to the general negative market trend.

    With yesterday's news and the subsequent drop of 5%, the critical support zone in the area of EUR 51.85 was again successfully tested, which could indicate a bottoming out. The downward trend formed since June 2022 continues at the current price level. If it is successfully broken, the 200-day line at EUR 56 beckons in the short term.

    The somewhat sobering Phase II data of the drug Asundexian against strokes, which were received by the European Society of Cardiologists at a meeting in Barcelona rather cautiously, were responsible for yesterday's sell-off. Nevertheless, the Leverkusen-based Company intends to test Asundexian in pivotal studies on a broad group of patients. However, the exact design of the Phase III trial program, called Oceanic, is still being coordinated with authorities worldwide. According to Bayer, the new Phase III program investigates the efficacy and safety of Asundexian as a stroke prevention agent in patients with atrial fibrillation (a heart rhythm disorder). The first patients are expected to be enrolled in the program before the end of 2022.

    The major Swiss bank UBS has a positive outlook and continues to see Bayer shares as a buy with an unchanged price target of EUR 96. Phase II data on the anticoagulant Asundexian presented over the weekend fully supported the group's decision to now initiate a pivotal stroke prevention trial, analyst Michael Leuchten wrote.

    Kleos Space - Aiming high

    Soon, the share price of the Australian company, headquartered in Luxembourg and with offices in the UK and the US, could be headed back into orbit as the imminent launch of its fourth cluster of satellites is set to provide another significant boost to its data quality. The provider of space-based Data-as-a-Service and Mission-as-a-Service for high-frequency reconnaissance announced that its Observer Mission (KSF3) satellites are scheduled for launch on the Transporter-6 SpaceX Mission NET in October 2022.

    Equipped with AIS, VHF and X-band payloads, the cluster of four satellites will expand Kleos' data collection capacity by up to 119 million sq km per day. That will make it possible to increase the average daily overflight rate over the 15-degree latitude area to about five times per day.

    The Company plans to deploy a total of 20 clusters in the medium term. In order to finance the growth, a four-year, USD 10 million secured loan has been obtained from PURE Asset Management. The fact that the topic also strikes a chord due to geopolitical uncertainties is demonstrated by the conclusion of a research and development cooperation agreement with the "Naval Surface Warfare Center Division," Crane, for joint data experiments. Under the agreement, Kleos will provide its radio frequency geolocation data in realistic test scenarios to improve maritime domain awareness for real-world challenges. It will include sanctions reporting, transhipment and embargo monitoring, search and rescue, resource management, fisheries control, smuggling, and border control.

    In addition, the Australians' order books have been filling up more and more for months. In May and June alone, orders and contracts worth just over EUR 1 million were secured. The stock market value of the highly innovative company is just under EUR 51 million. The share price has fallen by over 60% since the beginning of the year in the wake of the general market correction. The closer the start of the fourth cluster gets, the more interest the share is likely to arouse.

    BYD - Strong figures as expected

    After the short correction from the annual high at USD 43.61 to currently USD 34.88, a trend reversal to new heights could already have been initiated. Only an open price gap at USD 30.69 could once again lead to an extra round downwards, which would then, however, open up favorable long-term entry opportunities.

    As expected by the experts, the Company from Shenzhen delivered excellent half-year figures. Sales increased by almost 66% to 150.61 billion CNY compared to the first half of 2021. Net profit from January to June reached 3.6 billion CNY, up from 1.17 billion CNY a year ago. Earnings per share of 1.24 CNY significantly exceeded the average analyst forecast of 0.42 CNY.

    BYD's first-half profit came despite a strained automotive supply chain as citywide lockdowns in Shanghai and Changchun, the two main auto hubs in China, forced thousands of assemblers and component makers to halt production at least partially between March and May. Following the publication of the half-year figures, analysts at major bank Crédit Suisse reiterated an "outperform" rating and raised the price target from HKD 380 to HKD 400.


    Due to the ongoing correction in the stock markets, attractive entry opportunities are opening up for some shares. Bayer was able to hold an important support level after yesterday's sell-off. In contrast, BYD came up with solid half-year results and has already turned north again. The start of the fourth cluster in October could soon result in a significant trend reversal for the shares of Kleos Space.


    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Fabian Lorenz on November 30th, 2023 | 07:10 CET

    Biotech Alert! Morphosys, Bayer, BioNTech and Defence Therapeutics

    • Biotechnology
    • Pharma

    Morphosys is not for the faint-hearted. After unclear study results, the stock gave up its annual gains within a few days. Analysts are also divided on what the future holds. On December 10, the study details will be released, hopefully shedding light on the situation. Bayer shareholders are currently seeing dark clouds. The stock plummeted from EUR 40 to EUR 30 in a short time. Is the dividend now at risk, or is the entire company in jeopardy? There is a slew of positive news for Defence Therapeutics. Can the stock break out of its sideways trend? A potential partner for the Canadians could be BioNTech. The German biotech favourite is working with full coffers on cancer vaccines. However, analysts remain cautious.

    Read

    Commented by Juliane Zielonka on November 30th, 2023 | 07:00 CET

    Growth Industries in Focus: Investors see potential in Defense Metals, BASF and Volkswagen shares

    • Mining
    • Tungsten
    • RareEarths
    • Electromobility

    Investors are looking for opportunities in growing markets. Looking at industries currently requiring rare earths - such as energy, defense, electromobility, and many more - leads to the mining sector. Someone has to supply the valuable raw materials so these industries can continue growing. Defense Metals' Wicheeda project in Canada shows promising results, particularly the increase to 6.4 million tons with a TREO content of 2.86%. BASF secures EUR 124.3 million in government funding for a green hydrogen plant in Ludwigshafen, planned in collaboration with Siemens Energy. Volkswagen is facing challenges, emphasized by VW board member Thomas Schäfer, who announced tough cuts to maintain competitiveness without closing plants. Volkswagen will have to respond to change with a more agile approach, especially as China advances in electromobility.

    Read

    Commented by Armin Schulz on November 29th, 2023 | 06:30 CET

    MorphoSys, Cardiol Therapeutics, Bayer - Where will the rebound start first?

    • Biotechnology
    • Pharma

    2023 was a challenging year for pharmaceutical and biotech companies. After the boom years of the Corona pandemic, many companies went into a tailspin. But not just vaccine manufacturers were hit; others were dragged down too. The markets are currently volatile. MorphoSys has seen a peak gain of 145% since the beginning of the year - but is currently only up 35%. Cardiol Therapeutics has also gained over 140% and has recently consolidated. The share is currently up 74% since the beginning of the year. Only Bayer's performance curve is pointing downwards. The share is currently worth 34% less than on January 2. We look at where the rebound will start first after the consolidations.

    Read