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August 12th, 2024 | 07:00 CEST

Hensoldt AG, Almonty Industries, Vonovia - New opportunities after the crash

  • Mining
  • Tungsten
  • RealEstate
  • armaments
Photo credits: pixabay.com

The past trading week was indeed quite a challenge. Uncertainty and high volatility dominated the global financial markets. Although share prices gradually recovered after Black Monday, it is still too early to sound the all-clear due to increasing geopolitical tensions and the unwinding of the global yen carry trade. Nevertheless, interesting entry opportunities have opened up for investors following the exaggerated price losses at many companies.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: HENSOLDT AG INH O.N. | DE000HAG0005 , ALMONTY INDUSTRIES INC. | CA0203981034 , VONOVIA SE NA O.N. | DE000A1ML7J1

Table of contents:


    Almonty Industries enters a critical phase

    As recently as last Tuesday, one could have added an Almonty Industries share to the portfolio for CAD 0.63. Since then, the share price of one of the world's largest tungsten producers has risen by 10% to CAD 0.70. Given the Company's developments, it is highly unlikely that this marks the end of the price rally. The Canadian company is now entering a critical phase, which could lead to a significant multiplication of the share price.

    Almonty Industries is currently in the process of completing its tungsten mine in South Korea and will then be one of the world's largest sources of the critical metal in the future, accounting for around 30% of global tungsten production outside China. Production at the Sangdong mine is scheduled to start as early as the end of the current year with the extraction of 2.3 tons of tungsten oxide, which will then be continuously expanded to 4.8 tons.

    In mid-July, Almonty Industries received the seventh and eighth disbursements from the KfW IPEX-Bank loan for the Sangdong tungsten project as construction progressed as planned. The Company received a further USD 10.6 million, bringing the total credit line to USD 75.1 million.

    In the latest study by analysts at Sphene Capital, the price target for Almonty Industries was raised from CAD 1.59 to CAD 2.13. The investment rating was, of course, confirmed as "Buy".

    Hensoldt with a strong turnaround

    Before the start of the war in Ukraine, arms companies were still regarded as "socially harmful" investments, but after the turnaround, they have mutated into one of the Germans' favourite investment objects. In addition to the German flagship Rheinmetall, which once again received an order worth millions for the delivery of state-of-the-art medical technology from Ukraine and was given a new price target of EUR 666 by the US investment bank Goldman Sachs, the order books of Hensoldt AG, which specializes in defense electronics and sensor solutions, are also full to bursting.

    Since Russia's invasion of Ukraine in late February 2022, the Hensoldt share has gained around 200% to EUR 34.30. However, analysts at mwb research believe this advance is far from over. In their latest study, the experts gave the share a target price of EUR 44 and a "Buy" rating.

    Given NATO's growing defense budgets and escalating geopolitical tensions, Hensoldt has significant growth potential. Germany and France, among other European countries, are stepping up efforts to modernize their defense capabilities, which promises long-term benefits, the analysts said. EU defense spending now exceeds that of the US, which would improve the profit outlook for Hensoldt.

    In addition, the upcoming elections in NATO countries could further boost defense spending and thus significantly increase Hensoldt's sales. Hensoldt offers a compelling investment opportunity in the defense sector due to its attractive valuations and promising growth opportunities compared to its peers.

    Vonovia - Real estate shares at a turning point?

    The German real estate sector is in crisis. In addition to high inflation with rising commodity prices and the shortage of skilled construction workers, high loans for willing housebuilders have been a sticking point recently. However, with the possible lowering of key interest rates by the Fed, which could then be followed by the European Central Bank (ECB), hopes of lower interest rates and, thus, real estate financing are spreading. The sector could be on the verge of a sustainable turnaround.

    Positive signals came from LEG Immobilien, whose management sees a revival in the transaction market, indicating that the devaluation cycle may be nearing an end. Analysts are also optimistic about Vonovia, Germany's leading housing company.

    The analyst firm Warburg Research raised its target price for Vonovia from EUR 39.50 to EUR 40.20 with a "Buy" rating following the second quarter figures. The results have confirmed that the real estate company is doing well.

    From a technical perspective, the Vonovia share is close to breaking the horizontal resistance level of EUR 30.21 at EUR 29.46. A sustained breach of this resistance would generate a price target in the region of EUR 37.98. A downward gap from April 2022 still needs to be closed at this level.


    After the stock market earthquake last Monday, many share prices overreacted, creating attractive entry opportunities. The construction of the Sangdong mine is entering a critical phase at Almonty Industries. The crisis is coming to an end for real estate stocks such as Vonovia. Due to the turnaround, Hensoldt is benefiting from a further increase in orders.


    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.

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    Der Autor

    Stefan Feulner

    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.

    About the author



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