21. September 2021 | 12:22 CET
LPKF Laser, Almonty Industries, Wacker Chemie - Brilliant growth
During the last TV debate before the federal elections, the topic of climate protection was hotly debated. In her closing statement, the Green Party candidate said that "as Chancellor, she stands for real change, not doing things by halves when it comes to climate protection." Decarbonization must come about as quickly as possible. However, looking at the current stagnation in the expansion of the infrastructure for renewable energies on the one hand and the shortage of raw materials needed for this on the other, one should at least seriously question the ambitious goal.
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ISIN: LPKF LASER+ELECTRON. | DE0006450000 , ALMONTY INDUSTRIES INC. | CA0203981034 , WACKER CHEMIE O.N. | DE000WCH8881
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
Almonty Industries - Defying China
The demand for raw materials to expand renewable energies is enormous and already exceeds supply. Lithium, cobalt and nickel are currently difficult to acquire. Yet the cycle in Germany, the total share of electric cars is just over 10%, is just beginning. The trade war between China and the USA is making matters even more difficult. The Middle Kingdom is the leading producer with a quota of 80% of the world market on average. Increasing domestic demand leaves less and less for the Western industrialized countries.
The share of production for the strategic metal tungsten is even higher at 85%. The shortage ex-China is reflected in the price of tungsten APT (ammonium paratungstate), which is currently higher than it has been for more than three years. Most people know tungsten from its use as the filament in lamps. In addition to the oil and gas industry, there is increased demand in new sectors such as charging stations for e-cars, 5G networks and semiconductors.
One way to get tungsten outside China is through Almonty Industries, which is building the world's largest tungsten mine at Sangdong in South Korea. By the end of next year, the mine is expected to produce tungsten concentrates of up to 10% of the global market. The groundbreaking ceremony took place in the 2nd quarter of this year, and the financing was completed with the implementation of a capital increase in the amount of EUR 9.4 million. The debt capital is contributed by the Frankfurt KfW-IPEX Bank for USD 75.1 million.
In addition, a buyer for the next 15 years with a guaranteed price floor has already been found in the Austrian Plansee Group. Plansee also has a stake in Almonty Industries, as does Deutsche Rohstoff AG, which holds 12.2% of the Canadian Company. The currently rising tungsten prices and the approaching start of production should give wings to the share price of Almonty Industries. Currently, the stock market value is EUR 119.80.
LPKF Laser - Supplier to the solar industry
LPKF Laser, the manufacturer of machines and laser systems for micromaterial processing, is becoming increasingly popular in the solar industry. Back in July, the Garbsen-based Company received an order from a solar module supplier. Now, another order worth EUR 10 million has been received from the solar industry. This order will be relevant for sales in the fiscal years 2022 and 2023. In total, the order backlog from the solar industry amounts to more than EUR 40 million.
Overall, 2021 got off to a slow start and was characterized by a slump in sales and higher-than-expected losses. The order situation has improved significantly so that higher sales should be reported in the second half of the year. In the wake of the weak year, LPKF Laser shares also lost more than 30% in value. A broad support zone around EUR 20 could be an entry point after a successful test.
Wacker Chemie - Take advantage of setbacks
The chart picture for the chemicals group Wacker Chemie is much rosier. After the middle of the month highs at EUR 159.45, the Munich-based share corrected due to the weak overall market. It is currently testing the broad support at EUR 150. The strong share price performance was fundamentally driven by the increase in annual forecasts for both sales and operating profit. The reason for the renewed upward adjustment is the rising price of polysilicon and high demand in the chemical areas.
The sales target has now been raised from EUR 5.5 billion to EUR 6 billion. In the previous year, Wacker Chemie achieved revenues of EUR 4.7 billion. Earnings before interest, taxes, depreciation and amortization will now be between EUR 1.2 billion and EUR 1.4 billion. The Company expected an operating profit of between EUR 0.9 billion and EUR 1.1 billion in earlier forecasts.
Due to the higher annual targets, major Swiss bank UBS left LPKF Laser's stock at "buy" and firmed up its price target of EUR 190. Although the middle of the new target range is below internal estimates, the EBITDA expected for the third quarter is above it.
Climate protection dominates the election campaign. As usual, ambitious targets and promises are trumpeted before the election, but the reality of implementation often looks different. The shortage in the tungsten market makes Almonty Industries a global player. In contrast, LPKF Laser is benefiting from rising demand from the solar industry and is attractive at its current value, as is Munich-based chemicals group Wacker Chemie.