BYD's blade offensive, the raw materials frenzy at Power Metallic Mines, and the Volkswagen earthquake: Seize the opportunity now!

BYD – New blade battery sparks the imagination

BYD's latest sales figures paint a mixed picture. In its home market of China, things have not been going well for the electric vehicle pioneer for months. Sales in February 2026 fell by over 40% compared to the previous year. This is the sixth consecutive decline. In addition to seasonal effects such as the New Year holidays, the group is particularly affected by the bitter price war in China. Competitors such as Geely and Leapmotor are performing better or even growing, which shows that the problem is not solely due to weakening overall demand. Investors are therefore wondering whether growth in China has finally reached its limits.

While domestic business is stagnating, exports are becoming increasingly important as a driver. For the first time, more vehicles were sold abroad than to domestic customers in February, an increase of 50%. With a target of 1.3 million units exported by 2026, BYD is pushing ahead with its international expansion. New plants in Hungary and possible acquisitions in Mexico underscore the strategy of directly serving regional markets such as Europe and Latin America. The reasoning behind this is clear. Higher margins abroad and less dependence on the competitive Chinese market could put the valuation on a new footing in the long term.

The latest technology offensive promises momentum for the future. The second generation of the blade battery enables ranges of over 1,000 km and drastically reduces charging time from 10 to 70% in just 5 minutes. This is complemented by the establishment of its own fast-charging network with thousands of stations in China. If these innovations succeed in dispelling the remaining reservations about electric vehicles and, at the same time, consistently expand international business, BYD could bottom out. With solid growth, the battery division is already providing a second pillar of support that is often underestimated. The share is currently trading at EUR 10.52.

Power Metallic Mines – What investors need to know

The latest metallurgical test results from Québec are likely to catch the attention of even experienced mining investors. A Canadian exploration company has reported recovery rates for its Lion Zone that are well above the industry average. The values are 98.9% for copper, 96.8% for platinum, and 93.9% for palladium. Until now, management had conservatively estimated 80%. Anyone who only looks at the drilling results is overlooking the key point. The high recovery rates mean that significantly more saleable metal is obtained from each ton of ore mined.

This significantly improves profitability. In addition, almost half of the value comes from copper, a metal that is indispensable for the energy transition.

Management has learned from the subdued market reaction, and is now giving priority to the Preliminary Economic Assessment (PEA). Instead of going public on the New York Stock Exchange as initially planned, the focus is now on reliable profitability figures. At the same time, exploration is in full swing with a further 65,000 m of drilling, financed from a well-filled war chest of around CAD 30 million. The systematic search for further zones is particularly exciting. The company has massively expanded its land package and now controls 7 of the 8 most important target structures in the region. The course has been set for an entire mining district.

A glance at the shareholder register reveals more than any press release. Heavyweights such as Robert Friedland, Rob McEwen, and Gina Rinehart have bought into the company. These names stand for successful mine development. These investors are committed to long-term value creation. The geographical location is another plus point. High-voltage power lines and a major traffic artery run right next to the deposit. The infrastructure that others have to spend billions on already exists here. Added to this are tax incentives from the province of Québec. The valuation still appears moderate in historical comparison with similar discoveries. Therefore, the potential for patient investors is considerable. The share is currently trading at CAD 1.07.

Volkswagen – Earnings slump

The past fiscal year was a year of contrasts for Europe's largest automaker. Revenue remained virtually stable at around EUR 322 billion, but bottom-line profits slumped. At EUR 6.9 billion net, the group earned 44% less than in the previous year, the lowest figure since the diesel crisis. The operating margin slumped to 2.8%. There were challenges on several fronts. US import tariffs, a difficult business situation in China, and special effects at subsidiaries ate into earnings. The fact that net cash flow in the automotive division rose to EUR 6.4 billion at least prevented liquidity concerns. Order intake in Europe rose by 13%, driven by electric vehicles, which is a small ray of hope.

The development at sports car manufacturer Porsche was particularly painful. Its operating profit slumped from EUR 5.3 billion to a meager EUR 90 million. The return? Just 0.3%. The reason is a strategic shift away from a purely electric course back to more combustion engines, which left deep holes in the coffers. The Chinese are also buying fewer German premium vehicles, while local suppliers such as BYD are aggressively capturing market share. Audi and its commercial vehicle subsidiary Traton also felt the headwinds from the Far East and North America. The core VW brand remained relatively stable with a margin of 4.7%. This is proof that volume business forms the basis, while the supposed gems are currently struggling.

The board is responding with a sharp pencil. The group plans to cut 50,000 jobs in Germany by 2030. That is 15,000 more than agreed at the end of 2024. The majority of these job cuts will affect the core brand, but subsidiaries such as Audi, Porsche, and the software subsidiary Cariad will also have to take a hit. Layoffs for operational reasons are ruled out until then; the reduction will be achieved through partial retirement and severance payments. The plan behind this is to reduce costs by 20% across all brands. A total of around EUR 60 billion is to be saved by 2028. For 2026, the group expects an operating return of 4.0-5.5% and sales growth of up to 3%. The dividend will fall to EUR 5.26 per preferred share, a decrease of around 17%. The stock currently trades at EUR 90.52.

The electric future is not only being built, but is also fiercely contested on the commodities market and on the assembly line. BYD is overcoming the slowdown in China with a technological revolution in battery cells and is boldly pushing ahead with expansion overseas. Power Metallic Mines, on the other hand, is attracting the heavyweights of industry with spectacular yields in Québec, who are betting on the next major polymetallic deposit. Volkswagen, on the other hand, is struggling through the valley of tears with unprecedented austerity measures and job cuts, while the returns of its luxury subsidiary Porsche are melting away.