Close menu




September 28th, 2023 | 07:10 CEST

BYD unstoppable. Sell Varta shares? 200% with Almonty Industries?

  • Mining
  • Tungsten
  • Electromobility
  • renewableenergies
Photo credits: Seat SA

Electromobility and the energy transition offer numerous investment opportunities along the value chain. Take BYD, for example. The Chinese company is increasingly becoming the e-car market leader. Could they soon even dethrone Tesla? That should make the stock interesting. And what about Varta? The battery manufacturer disappointed investors last year. Is the stock attractive now? Analysts continue to take a critical view of the Company. Almonty Industries is a different story. After the latest half-year figures, the experts at Sphene Capital advise buying. From 2024, sales and profits of the tungsten producer are expected to grow strongly. According to the analysts, the share could triple.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , VARTA AG O.N. | DE000A0TGJ55 , ALMONTY INDUSTRIES INC. | CA0203981034

Table of contents:


    Almonty Industries: Jump in sales and profits from 2024 onwards

    Can a commodity producer double its sales in a year? Yes, if, for example, it starts up a new mine. This is on the horizon for Almonty Industries in 2024. The Canadians will soon begin operating their tungsten mine in South Korea. The Sangdong mine will be one of the largest tungsten mines in the world in just a few years, potentially making Almonty the most important supplier of the coveted raw material outside China and Russia. The Company also has mines in Spain and Portugal. According to analysts, this is expected to generate revenue of CAD 28.9 million in the current year. However, the result is still negative due to the development of the Sangdong project.

    In the coming year, things will get exciting: Analysts expect sales to jump by over 100% to CAD 60.9 million. EBITDA is expected to climb to CAD 20.6 million, and positive earnings after tax (EAT) of CAD 6.0 million are expected to remain in the Company's coffers - with a further upward trend in the coming years. In 2025, the revenue mark of CAD 100 million should already be cracked, and EBITDA and EAT should increase to CAD 49.1 million and CAD 27.3 million, respectively. Correspondingly, the P/E ratios for 2024 are currently 19.2 and 4.7 for 2025. Too little, say the analysts. They recommend the Almonty share as a Buy with a price target of CAD 1.59, representing a price potential of over 200%.

    Almonty will be presenting live at the 8th IIF - International Investor Forum on October 10, 2023. Also presenting are exciting companies such as K+S, 3U Holding and Altech Advanced Materials. Click here to go to the free registration.

    Varta: Not a buy even at this level?

    At Varta, on the other hand, analysts are much more skeptical. It has been almost a year since the battery manufacturer sent investors a profit warning. The Company had completely miscalculated its plans to set up production for e-car batteries, and then its core business collapsed. The consequence was liquidity problems and a share crash from over EUR 60 to under EUR 20. The share is currently trading at EUR 18. Has the bottom been reached, and is it time to buy? While the bottom may have been reached, prospects for price increases are lacking, at least according to DZ Bank. After the last quarterly figures, their analysts have increased the price target from EUR 10 to EUR 15, but the recommendation remains "Sell". The experts consider the Company's outlook for the second half of the year to be too optimistic. The analysts also fail to understand where the demand for the 2024 sales targets is to come from. Therefore, the forecasts are fraught with risks. Warburg Research analysts also view the outlook as ambitious. Their price target is also EUR 15, with a corresponding "Sell" recommendation.

    BYD: Unstoppable

    BYD's targets are also ambitious. However, the Chinese company is delivering. Most recently, the production of the 500,000th BYD Dolphin was reported. That would make the compact SUV the most-sold vehicle in its class in China since its August 2021 launch. And now, the all-electric SUV can also be purchased in Germany. According to its own figures, BYD has already produced more than 5.1 million passenger cars with alternative drives - i.e. fully electric or hybrid - worldwide. It will be exciting to see how the brand sells in Germany and the rest of Europe.

    And BYD is not only a leader in electric cars. The Chinese company is also going full throttle** with batteries, buses and other vehicles. Most recently, an order was reported from the US. BYD has delivered the first three K9M battery-electric buses to the Woods Hole, Martha's Vineyard and Nantucket Steamship Authority. The order is intended to help the US customer electrify its bus fleet step by step.


    The BYD share has not been able to benefit from the operational growth in recent months. This year, it has lost around 8% in value and is trading 30% below its all-time high from the summer of 2022. Almonty's share price of CAD 0.44 is also far from its highs. But with the commissioning of Sangdong, there is considerable share price potential. At Varta, there is currently a lack of prospects for sustainably rising prices.


    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") currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a "Transaction"). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
    In this respect, there is a concrete conflict of interest in the reporting on the companies.

    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 also 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

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



    Related comments:

    Commented by Armin Schulz on June 20th, 2025 | 07:00 CEST

    Critical metals, crisis-proof profits: BYD, Power Metallic Mines, and Nordex are your key

    • Mining
    • RareEarths
    • Electromobility
    • renewableenergies

    The global race for clean mobility and energy is fueling an unprecedented hunger for raw materials. Copper, nickel, lithium, and rare earths are the hidden building blocks of the climate transition and are becoming new, strategically vital cornerstones of the economy. Those who secure these critical metals and use them innovatively will dominate the future. But supply risks and price shocks loom. So how can this race be won? It will take companies that revolutionize the entire value chain, from mining to green technology. This is where the strategies of BYD, Power Metallic Mines, and Nordex come into play.

    Read

    Commented by Armin Schulz on June 18th, 2025 | 07:05 CEST

    Plug Power's comeback, Desert Gold's crisis protection, BP's oil boom: Your triple 200% opportunity for 2025

    • Mining
    • Gold
    • Oil
    • Hydrogen

    Savvy investors see opportunities in turbulent markets: three sectors now offer explosive return potential. Hydrogen stocks are poised for a spectacular turnaround after their slump, gold is shining as a shield against crises with record prices confirming the trend, while oil is benefiting from geopolitical upheaval in the Middle East. Those who take advantage of this momentum could realize substantial gains. The key is to look for companies that have the potential to double in value. Plug Power, Desert Gold, and BP are particularly promising.

    Read

    Commented by Fabian Lorenz on June 18th, 2025 | 07:00 CEST

    Almonty Industries: Analysts raise target price! 75% Upside Potential! CEO clearly backs Rheinmetall and Co. on CNBC

    • Mining
    • Tungsten
    • Defense
    • Investments

    Anything other than further price increases for Almonty shares in the coming weeks would be a surprise. The tungsten gem is facing a hot summer. The main driver for the share price will be the commissioning of the mega mine in South Korea. Due to the increasing visibility of revenue and profit growth, analysts have significantly raised their price targets for the share. With its unique market position, the Company remains attractively valued compared to its peers. With the planned upcoming NASDAQ listing, the stock is expected to attract greater attention from US investors. That Almonty is gaining more visibility is underscored by CEO Lewis Black's recent interview with CNBC. In it, Black emphasized that Almonty already supplies 85% of its production to the defense sector. Rheinmetall, for example, needs tungsten to harden ammunition.

    Read