March 29th, 2022 | 11:25 CEST
BYD, Meta Materials, Salzgitter AG - Unabated rise
Table of contents:
Salzgitter AG - Like clockwork
With an annual crude steel capacity of more than 7 million tons, over 24,000 employees and external sales of around EUR 10 billion in 2021, the Salzgitter Group is one of Europe's leading steel and technology companies. Moreover, a pre-tax profit of EUR 705.7 million was achieved in 2021, the best pre-tax result in 13 years. The Salzgitter Group's external sales rose to EUR 9.77 billion, up from EUR 7.09 billion in 2020, owing to higher shipments compared with the previous year and significantly improved average selling prices for most rolled steel products. Earnings per share came to EUR 10.74, following a loss of EUR 5.13 per share certificate in the previous year. A dividend of EUR 0.75 per share is to be proposed to shareholders at the Annual General Meeting of Shareholders on June 2, 2022, representing the largest payout since 2008.
Commenting on the result, Salzgitter AG CEO Gunnar Groebler said: "After two economically more difficult years, we achieved an excellent result of EUR 706 million in profit before tax in 2021. It is gratifying and strengthens the economic basis we need to successfully master the upcoming transformation into a market leader for "Circular Economy Solutions" and a pioneer of low-CO2 steel production in Europe."
The Salzgitter share has continued to boom since the start of the year, posting a performance of more than 50% in the first quarter alone to currently EUR 48.00 on the trading floor. Analysts at Deutsche Bank Research raised their price target for Salzgitter AG from EUR 35 to EUR 42, following the steel group's total quarterly figures while leaving the rating at "hold". The only real news was the surprisingly low net debt, analyst Bastian Synagowitz wrote.
Meta Materials - Strongly positioned for the long term
Companies involved in new innovations and technologies are often subject to high volatility in the market. The same happened to Amazon at the end of the 1990s, to Google at the beginning of the new millennium, and to the various cryptocurrencies in recent years. Meta Materials, a leading market player in the research and production of sustainable, highly functional materials, also felt this in its own share price. After Meta Materials, also due to the meme hype, was quoted at USD 21.70 on the Nasdaq and shot up to become a multiple unicorn, the value corrected again to currently USD 1.86. It has been working on the bottom for months, only to start another upward wave.
Fundamentally, management has laid the roots for a prosperous future. The comprehensive technology platform enables leading global brands to deliver breakthrough products to their customers in consumer electronics, 5G communications, health and wellness, aerospace, automotive, and clean energy. In addition, nano-optical technology from Nanotech Security, acquired last year, provides anti-counterfeiting security features for government documents and currency, as well as brand authentication.
By expanding its patent portfolio, Meta Materials, named Lux Research Innovator of the Year 2021, has further extended its competitive edge. In total, the Canadians own 247 patents in 65 patent families. With liquidity of EUR 36.78 million, Meta Materials is well equipped to expand its product portfolio with its three areas of holography, lithography and wireless sensor technology with strong IT networking and artificial intelligence embedding. After the correction, the stock market value is EUR 499.56 million. The prospects in the market for new materials are favorable for Meta Materials to further accelerate commercialization due to the placement of the various patents.
BYD - Further in the correction loop
The electric vehicle company BYD also lost market value in the course of the market correction that has taken place in recent weeks. After annual highs of approximately EUR 31.00, it fell by almost 40% to EUR 18.20. In the meantime, the Build Your Dream company has managed to regain its footing and is trading at EUR 25.00. The chart would at least have room to move upwards to the 200-day line, but a final easing cannot yet be declared for the chart.
Fundamentally, Goldman Sachs sees a buy candidate in BYD but lowers the price target from 359 Hong Kong dollars to HKD 303, equivalent to EUR 35.22. The US major bank had lowered the price targets of several Chinese automakers. Analysts cite problems in the procurement of components due to the Russia-Ukraine conflict as a reason.
Everything is getting more expensive; inflation is rising and is being fueled by the Ukraine conflict. Europe's leading steel and technology company, Salzgitter AG, is benefiting. Meta Materials is equipped for the long term with its patents, and BYD is currently on the watch list.
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