Close menu




September 21st, 2021 | 12:22 CEST

LPKF Laser, Almonty Industries, Wacker Chemie - Brilliant growth

  • Tungsten
Photo credits: pixabay.com

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.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: LPKF LASER+ELECTRON. | DE0006450000 , ALMONTY INDUSTRIES INC. | CA0203981034 , WACKER CHEMIE O.N. | DE000WCH8881

Table of contents:


    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.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    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



    Related comments:

    Commented by Fabian Lorenz on May 24th, 2022 | 13:26 CEST

    Plug Power and BYD shares are strong: when will Almonty Industries take off?

    • Tungsten
    • Electromobility
    • greenhydrogen

    In weak stock market phases, the top performers of the future often emerge. The Plug Power share, among others, is currently shining due to its relative strength. The weak quarterly figures of the hydrogen specialist Plug Power seem to have been ticked off. Instead, the focus is on political support and a large order. The BYD share is also holding up excellently against the backdrop of the ongoing lockdown in China. There is a tailwind from Credit Suisse, and the new premium model is well received. At Almonty Industries, the CEO expressed confidence about the outlook at an investor conference. The Company is fully financed and will soon dominate the tungsten market outside China and Russia.

    Read

    Commented by Stefan Feulner on May 18th, 2022 | 10:21 CEST

    RWE, Almonty Industries, Daimler Truck - Increasing signs of strength

    • Tungsten

    The world's stock markets are staggering, but a further sell-off has so far been avoided. The German stock market barometer DAX is also showing strength. After another slide below the psychologically important 14,000-point mark, it has been possible to regain it significantly. Now, an important downward trend that has been in place since the beginning of the current stock market year awaits. Should this be broken, a more significant recovery should take place and provide further relief. The development of many individual stocks looks similarly positive. After stronger corrections, share prices are once again pointing north.

    Read

    Commented by Juliane Zielonka on May 3rd, 2022 | 13:18 CEST

    Adler Group, Amazon, Almonty - Free fall and strong growth

    • Tungsten
    • RealEstate
    • Defense

    Investing in real estate is becoming increasingly volatile, whether as a landlord due to higher energy prices or as an investor in the Adler Group. In the latter case, auditor KPMG did not put an audit certificate on the 2021 annual financial statements because it remains unclear how the loss of around EUR 1 billion came about. The share slid into the basement, and four board members resigned. A look across the pond at Amazon, and Amazon Web Services, in particular, shows what can help a balanced portfolio mix. Boeing, the Seattle-based company, has gained a significant customer in the aviation industry. In this industry, the rare earth metal tungsten is in great demand. Thanks to its high density, it protects against radiation and is used for this purpose in the sheathing of aircraft. We take a look at what investors should watch out for now.

    Read