June 16th, 2022 | 13:37 CEST
Insider alert at Varta, recommendation for Plug Power, Altech Advanced Materials with news
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"[...] While tungsten has always played an important role in the chip industry, it is now being added to batteries for e-cars. [...]" Lewis Black, CEO, Almonty Industries
Altech on the way to the battery revolution
Altech Advanced Materials AG is probably not yet known to every investor. But perhaps it should be. The Heidelberg-based company wants to produce a new type of battery in the future and thus revolutionize the market for e-cars. The latest company news has given the share new impetus. It is reported that the Altech Group has filed patent applications for the Silumina AnodesT battery material technology in core markets such as the USA, Europe, China, Japan and Korea, as well as for up to 156 other countries. Silumina AnodesT is to be manufactured at the planned battery coating plant in Saxony, Germany. Altech Advanced Materials holds a 25% stake in this plant. The remaining shares are held by the Australian parent company Altech Chemicals Limited. The latter is also providing most of the financing. In order to accelerate development, a pilot plant is already being built next to the future factory to provide battery manufacturers with appropriate material for testing and qualification purposes at an early stage.
According to Altech, they have already successfully developed a battery with 30% higher performance and lifetime. Higher density batteries result in smaller, lighter batteries and significantly less greenhouse gases and are the future of the electric vehicle market. Altech has published a pre-feasibility study for mass production at its planned plant in Saxony. According to this, annual revenues at the maximum production capacity utilization of 10,000 tons could amount to around EUR 153 million. An average EBITDA of around EUR 52 million would be achievable. As a junior partner in the joint venture, Altech Advanced Materials will not take all the money, but the current valuation seems anything but expensive. For example, the market capitalization is below EUR 10 million. Further information on Altech's technology can also be found in a detailed study on researchanalyst.com.
Plug Power: Morgan Stanley gives a thumbs up
The Plug Power share lost a lot of value in June. Within only 5 days, the share price dropped from EUR 18 to EUR 13.50. The newsflow had previously been positive. In South Korea, the Plug Power subsidiary SK Plug Hyverse has landed a government project. The client is the Korea Gas Corporation. SK Plug Hyverse is to build a PEM water electrolysis system pilot plant with a capacity of 1 megawatt for them. In conjunction with a wind power plant, green hydrogen will be produced and sold via charging stations. Plug Power is thus tapping into a new market. Hydrogen is set to play a greater role in South Korea in the future. By 2040, a hydrogen economy worth USD 40 billion is to be created in the country. Plug Power had already landed a major order in Europe. The Americans will build a 1-GW electrolyzer in Denmark for the customer H2 Energy Europe. According to Plug Power, this is the world's largest electrolyzer order ever. After the sell-off, Morgan Stanley has now spoken out. The analysts recommend the share with "overweight" and a price target of USD 43. Thus, they consider a doubling of the share price possible.
Varta: Insider alert before the Annual General Meeting
The Varta share has also suffered significantly in recent weeks. At around EUR 80, it is now trading as low as it was last in May 2020. Despite this low level, Prof. Dr Michael Tojner has sold shares worth over EUR 22 million. He is chairman of the supervisory board and majority shareholder of the battery group. At the same time, investors are waiting for news about the growth strategy in the field of electromobility and, in particular, a cooperation partner. Perhaps around the upcoming Annual General Meeting taking place on June 21? Because operationally, Varta is also currently being slowed down by the globally disrupted supply chains. Pilot production for large-format lithium-ion round cells is running according to plan, but details about the future have been awaited in vain.
Shares of hydrogen pure-play Plug Power have taken a significant hit despite good newsflow, but analysts still see potential. The stock of Altech Advanced Materials appears favorable if battery technology can indeed be revolutionized. At Varta, the sales by the majority shareholder at this low level and just before the AGM raises questions. Perhaps these will be answered around June 21?
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