May 30th, 2022 | 13:42 CEST
Great opportunities in alternative energies - BYD, Altech Advanced Materials, Nordex
Table of contents:
"[...] Nickel, therefore, benefits twice: firstly from its growing importance within batteries and secondly from the generally growing demand for such storage. [...]" Terry Lynch, CEO, Power Nickel
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
Many times the potential
There is no question that Altech Advanced Materials, with a stock market value of EUR 7.12 million, is a start-up. However, it is already clear what great potential lies behind the process of providing batteries with a special nano-coating. By coating the anode with high-purity aluminium oxide and enriching it with silicon, the deposition of lithium particles on the electrodes can be prevented. The problem of standard processes that lead to a loss of capacity after the first charge is thus eliminated. Altech's technology can increase battery performance by more than 15% and service life by as much as 30%. In addition, the Heidelberg researchers are far from having reached the end of their research. For example, by increasing the proportion of silicon on the anode, performance could be doubled. With Silumina Anodes™, a game-changer for the future of lithium-ion batteries could be born, according to Altech CTO Uwe Ahrens.
The result of the pre-feasibility study for the planned ceramic anode composite coating plant in Schwarze Pumpe, south of Cottbus, clearly shows the multiplication potential. According to the PFS, the project's pre-tax net present value (NPV) is around EUR 420 million. That puts the value of the Heidelberg's ownership stake of 25% at around EUR 105 million. The high profitability is also reflected in an internal rate of return of 40% and an investment payback period of just 3.1 years. At full production capacity utilization, 10,000t per year can be achieved. On average, the Company expects EBITDA of around EUR 52 million. If this comes anywhere close to becoming a reality, the above-mentioned EUR 7.1 million in market capitalization at a share price of EUR 1.40 should soon be a thing of the past.
Strong market leader
In contrast, the electric car manufacturer BYD, which has risen to become the market leader in China, has been established for years. The Company, which is financed by Waren Buffett, is not only the darling of investors, but analysts also continue to see potential despite its relative strength. The major Swiss bank Credit Suisse already sees a new all-time high with a price target of the equivalent of EUR 43.75. The verdict is "Outperform."
In fact, the "Build Your Dream" company is only a few steps away from new all-time highs at EUR 32.29. When overcoming the resistance at EUR 36.70, the "lid should simply fly off". Fundamentally, BYD was able to report further milestones. A sound barrier was broken in the electric bus segment. With the British partner Alexander Dennis Limited, the delivery of the 1,000th unit was announced. The BYD ADL Enviro400EV double-decker was partly funded by the Scottish government and handed over to Stagecoach Bluebird in Aberdeen during Scottish Bus Week in the presence of the Scottish government's Minister for Just Transition, Employment and Fair Work.
Sales of the market-leading, UK-built BYD ADL Enviro200EV single-decker and BYD ADL Enviro400EV double-decker have accelerated rapidly as the transition to zero-emission mobility gains momentum in the UK. While it took five years to deliver BYD ADL's 500th electric bus, the partnership has already delivered its 1000th vehicle just one year later.
Nordex - Things are getting critical
Wind turbine manufacturer Nordex already had full order books last year. At that time, low-margin old contracts were to blame for the rather tepid profitability. Now, about one year later, the situation of the Hamburg-based company is even more critical. The Company came up with a hefty profit warning and sent the share price to a new low for the year. Nordex now expects consolidated sales of EUR 5.2 to 5.7 billion and an EBIT margin of between minus 4 and 0%.
Nordex Group had originally forecast consolidated sales of EUR 5.4 to 6.0 billion and an EBITDA margin of plus 1.0 to 3.5%, excluding any costs in connection with the planned adjustment of the production network and as a result of geopolitical events. Expectations for capital expenditures of around EUR 180 million and a working capital ratio of below minus 7% remain unchanged. As a result of the adjustments, the share fell to a new two-year low of EUR 9.82. Although the psychologically important level of EUR 10 held at the first test. In the long term, however, this could fall. Investors should be cautious with an engagement despite the positive outlook for the wind sector.
Renewable energies are expected to replace fossil fuels even faster than originally planned. While BYD and Altech Advanced Materials, which could create a revolution in battery development, perform, Nordex continues to suffer from the low margin problem.
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.
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.