Close menu




February 17th, 2022 | 15:21 CET

Deutsche Bank, Mercedes-Benz, Memiontec: Investors take action

  • Technology
Photo credits: pixabay.com

Tech is out. In uncertain times, investors turn to conservative stocks. This is the case at present. The environment is characterized by the Ukraine crisis, high inflation and rising interest rates. Numerous high-flyers from the technology sector have been brought back down to earth. At the same time, conservative shares from the financial sector, for example, are making a comeback. Deutsche Bank is one of them. The share has made significant gains in recent weeks. The same applies to the shares of Mercedes-Benz, where analysts see further room for improvement. In addition, the automotive sector is benefiting from a failed emergency motion by the Green Party. In recent weeks, water treatment specialist Memiontec has also held up well, and investors speculate on an upward breakout.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: Memiontec Holdings Limited | SGXE56008290 , DEUTSCHE BANK AG NA O.N. | DE0005140008 , MERCEDES-BENZ GROUP AG | DE0007100000

Table of contents:


    Memiontec benefits from the water treatment megatrend

    Before we come to two high flyers of the past weeks, first, we look at the share with the potential to become one. With water treatment and supply, Memiontec is active in a megatrend industry. Accordingly, the share has held up well in recent months. Between the summer and fall of 2021, it initially rose sharply from EUR 0.15 to EUR 0.60. Subsequently, a healthy consolidation set in with a bottom above the EUR 0.40 mark. This opens up an interesting entry opportunity. After all, there is much to be said for Memiontec in the long term: population growth, economic upswing and changing consumer habits are driving global water consumption. At the same time, water is a finite resource, and up to 90% of all wastewater worldwide is discharged untreated, polluting the environment and reducing natural drinking water supplies.

    This mix makes water treatment a megatrend, and Memiontec is benefiting from it. The Singapore-based company has been developing complete water and wastewater management solutions for 20 years. It has a patented treatment process based on membrane ion exchange technology. The unique return kickers are the "Build-Own-Operate-Transfer" (BOOT) and "Transfer-Own-Operate-Transfer" (TOOT) segments. In these two segments, Memiontec invests in water treatment infrastructure together with public and private partners, becoming a water utility. In Indonesia, Memiontec has secured three asset ownership projects. The latest success story is the start of fresh water sales after completion of the first expansion stage of the BOOT project in the Indonesian megacity of Pekanbaru. Currently, the plant has a capacity of 200 LPS (liters per second). In the next stage, the capacity will be increased to 500 LPS by refurbishing and upgrading the existing water treatment plant. Another plant will add another 250 LPS by 2026 at the latest. The contract with the national water authority PDAM has a term of 25 years and ensures Memiontec well predictable cash inflows. The second BOOT project in the Indonesian capital Jakarta ("Hutan Kota") has already reached the second expansion stage with 450 LPS. In addition, Memiontec is working on further projects in China. In total, the order backlog for this year is around SGD 84 million. Memiontec's market capitalization - the shares are traded on the Singapore Exchange (SGX) and the Frankfurt Stock Exchange - is around SGD 152 million, the equivalent of EUR 100 million.

    Mercedes-Benz: Greens rebuff, Goldman sees potential

    Following convincing figures for 2021, the Mercedes-Benz share price continued to rise. And with that, the share price potential does not seem to be exhausted yet. After the buy recommendations from Goldman Sachs and DZ Bank, Warburg has now raised its price target. The Warburg analysts assess the final quarter of 2021 as surprisingly strong. As a result, the prospects for 2022 also look very positive. The price target for the Mercedes share has been raised from EUR 86 to EUR 104. In addition, the entire automotive sector has received a tailwind from the German government. Federal Economics Minister Lemke (Greens) had a proposal for German carmakers to reduce fleet emissions by 75% by 2030. That would mean that practically only fully electric vehicles would be allowed to be sold from 2030. This proposal went well beyond what was agreed in the coalition agreement. Accordingly, the proposal was rejected by the German government. The EU's previous requirement stipulates that new vehicle fleets may emit an average of 55% less CO2 than in 2021.

    Deutsche Bank: Rally not yet over

    Only a few sectors are happy about rising interest rates. Financial institutions are among them. As a result, the sector is one of the winners in 2022. With inflation remaining high beyond 7%, more and more market participants expect the US Federal Reserve to turn the interest rate screw even more aggressively this year. The European Central Bank will not escape this trend for long. Deutsche Bank is benefiting from this. CEO Christian Sewing said at the financial institution's New Year's reception, "After the euro zone has de facto lived interest-free for more than a decade, I would call this a historic turning point." Perhaps also a historic turning point for the stock. A 1% increase in key interest rates means additional annual earnings of EUR 400 million for Germany's leading financial institution. Thus, UBS recommends the Deutsche Bank share as a buy. UBS economists expect the ECB to end its loose gold policy in August. Initial interest rate hikes are expected to come in September and December. Therefore, UBS analysts believe that the rally in the banking sector is not over yet.


    In the current environment, conservative stocks remain in demand. Mercedes-Benz, Deutsche Bank and also Memiontec belong to this group.


    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

    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 André Will-Laudien on April 30th, 2024 | 07:30 CEST

    The 100% opportunity with Big Data and Artificial Intelligence: Nvidia, Softing, Microsoft and Super Micro Computer!

    • AI
    • bigdata
    • hightech
    • Technology

    Big Data, Web 3.0, IOTA and Artificial Intelligence are terms of the modern age. When the internet and high-tech stocks saw the light of day on the stock exchange during the dot-com bubble at the end of the 1990s, there were hundreds of companies with an idea but only a few customers, rarely any turnover, and certainly no profit. Now, 25 years later, computing power has increased a hundredfold, and the possibilities seem endless. Data for industry is finally usable, and consumers' usage behavior shows where manufacturers need to focus their products. We are in the age of complete transparency about movements, purchasing behavior and opinions. Large Internet companies such as Microsoft, Google and Apple have trillions of pieces of data at their disposal and the fastest mainframe computers to analyze them accordingly. With the deployment of machine learning, artificial intelligence knows no bounds. The stock market thrives on these advancements, with high-tech and AI stocks continuing to promise significant potential. However, it is worth taking a look at undiscovered followers.

    Read

    Commented by Juliane Zielonka on April 26th, 2024 | 07:00 CEST

    HelloFresh, First Hydrogen, Amazon: Growth in the Courier, Express, and Parcel industry

    • Hydrogen
    • Food
    • Technology

    The courier, express, and parcel industry (CEP) is a true growth engine. CEP companies currently employ almost 260,000 people, more than 50% more than ten years ago. Consumers worldwide are increasingly opting for direct deliveries to their homes, whether for food or retail orders. The food company HelloFresh is benefiting from this. The figures from the first quarter of 2024 impress analysts and investors alike. Increasing delivery traffic in cities needs new solutions. This is where First Hydrogen comes into play. The Company focuses on hydrogen-powered commercial vehicles for urban deliveries. The advantage of First Hydrogen's vans is their unbeatable range of over 600 km with just a single refueling. Amazon is also scaling up its food delivery services. In the US, they are enticing Prime subscribers to take advantage of delivery benefits for groceries. This is not at all popular in Europe and violates many consumer laws. We provide the details.

    Read

    Commented by André Will-Laudien on April 23rd, 2024 | 07:45 CEST

    Attention: DAX dividends! Car stocks pay out: Mercedes-Benz, MS Industrie, VW and BMW

    • Technology
    • hightech
    • Automotive
    • Electromobility

    The DAX 40 index has gone into reverse gear in recent weeks. In addition to the high-tech and artificial intelligence sectors, the multi-month bull market also included defense stocks in the interim phase. There is no real reason to celebrate among automotive stocks, as an expected decline in GDP also means reduced household budgets. This translates to fewer new vehicle sales, with many electric vehicles produced in bulk occupying important showroom space from dealers for months. The pain is increasing, and those looking to sell vehicles find themselves in ruinous discount battles with cheap Chinese imports. However, there appears to be a glimmer of hope on the horizon: interest rate cuts! They are expected in the second half of the year. We analyze the current situation.

    Read