From ore to energy: How BYD, Power Metallic Mines, and Siemens Energy are benefiting from the energy transition

BYD – Navigating through turbulent waters

BYD's latest quarterly figures paint a mixed picture. Although revenue rose by a respectable 14% to around CNY 201 billion in the second quarter, net profit unexpectedly slumped by 30%. This first decline in profits in over three years is mainly due to the bitter price war on the Chinese domestic market. In order to maintain market share, the Company is temporarily sacrificing its margin. This development has also unsettled investors and led to share price declines.

BYD is adjusting its strategy in response to margin pressure. Internally, the sales target for this year has been revised downwards several times and now stands at at least 4.6 million vehicles, indicating more cautious planning. At the same time, production has recently been scaled back for two months in a row to avoid excess inventory and better control costs. The focus is shifting from pure growth at any price to more efficient management.

Despite the short-term difficulties, BYD is pushing ahead with its long-term plans. A key element is further internationalization. A good example is the construction of its own production plant in Malaysia, which is scheduled to start operations in 2026. This local presence should help reduce costs and better adapt vehicles to regional preferences. Such strategic investments in growth markets, coupled with high research and development expenditures, are intended to lay the foundation for the next phase of growth. The share price has lost around 35% since the end of May and is currently trading at EUR 11.535.

Power Metallic Mines – More than just a commodity explorer

Power Metallic Mines, a Canadian exploration company, is focusing on one of the most promising polymetallic deposits in Québec with its flagship NISK project. The location offers significant advantages, including a politically stable, mining-friendly environment, strong infrastructure with road access, proximity to a local community, and an airport. Of particular importance is the direct connection to the Hydro Québec grid, which ensures affordable, low-carbon hydroelectric power. This is a plus in times of rising energy costs and strict sustainability requirements.

The NISK project is particularly impressive due to its broad raw material base. In addition to the battery metals nickel and cobalt, copper and platinum group metals such as platinum and palladium are also present. This combination reduces dependence on the price of a single metal and serves several future markets – from electromobility to hydrogen technology. Initial mineralogical findings indicate that the metals are predominantly present in coarse-grained chalcopyrite and cubanite. This suggests conventional sulfide processing and thus efficient extraction.

At the same time, the Company is strengthening its leadership: Seamus O'Regan, the former Canadian Minister of Energy, has joined the Board of Directors. His deep understanding of the political landscape and strong connections within regulatory and Indigenous communities are expected to support the Company in navigating complex approval processes. Power Metallic Mines is in a solid operational position. Exploration work is financed through the end of 2026. An extensive drilling program involving multiple rigs is currently providing new data for a timely reassessment of the total resource and should generate a steady flow of news. The stock is currently trading at CAD 1.41.

Siemens Energy – Between record orders and challenges

The operational momentum at Siemens Energy continues unabated. The most recent quarter brought record order intake of EUR 16.6 billion and a 13.5% increase in revenue. The Gas Services and Grid Technologies divisions in particular posted strong growth. This strength is fueled by global demand for energy infrastructure, driven by trends such as data centers and grid expansion. Despite this momentum, the wind business under Siemens Gamesa remains a work in progress and continues to weigh on overall margins.

The Company is strategically positioning itself in growth markets. The billion-dollar order for the Bornholm Energy Island Baltic Sea power hub underscores the Company's expertise in large infrastructure projects. Investments in new manufacturing capacity, for example, for transformers, are intended to resolve bottlenecks and stabilize supply chains. The partnership with Eaton to supply data centers shows how Siemens Energy is opening up new fields of application for its core technologies.

Financially, the tide has turned. The early repayment of government guarantees paved the way for a resumption of dividend payments as early as 2025. This newly gained flexibility underscores the Company's solid capital structure. Nevertheless, the outlook for investors remains mixed. While the core business is booming, the ongoing restructuring at Siemens Gamesa continues to require patience. Long-term profitability depends largely on whether the cost turnaround in the wind segment is successful. The share price has been consolidating since mid-August. It is currently trading at EUR 87.76.

The energy transition rewards strategic foresight, but every company faces its own challenges. BYD is sacrificing short-term margins in the domestic price war in order to grow in the long term through internationalization and research. Power Metallic Mines scores with its versatile NISK deposit in a mining-friendly region and benefits from raw material restrictions imposed by China. Siemens Energy shines with record orders in its core business, but must get a handle on the ongoing issues at Siemens Gamesa. Overall, despite their different starting points, all three players remain key drivers of transformation.