Close menu




March 30th, 2022 | 12:50 CEST

Nordex, Altech Advanced Materials, Varta - Winners of the energy turnaround!

  • Electromobility
Photo credits: pixabay.com

Renewable energy generation and energy storage are taking on an increasingly important role. The challenges for the infrastructure with decentralized energy sources are also increasing. Given the explosively rising lithium prices, which are essential for the production of batteries, innovations are gaining importance. Some solutions have the potential to powerfully shake up the industry. Long-term investors can profit from the megatrends in various ways.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: NORDEX SE O.N. | DE000A0D6554 , ALTECH ADV.MAT. NA O.N. | DE000A2LQUJ6 , VARTA AG O.N. | DE000A0TGJ55

Table of contents:


    Nordex - Outlook boosted

    The war in Ukraine is making Germany painfully aware of how dependent it is on energy and raw material supplies from abroad. The faster expansion of renewable energies, which is now being sought, will also play into the hands of onshore wind turbine manufacturer Nordex in the medium term. However, sharply higher raw material prices and supply chain problems put heavy pressure on margins in the past fiscal year, which the stock acknowledged with a 40% drop in the share price over the past 12 months.

    With the publication of the final figures and a positive outlook for the current fiscal year, as well as confirmation of the medium-term targets, which hold out the prospect of an EBITDA margin of 8%, the stock has recently bounced back. In the past year, the operating margin halved from an already low level to 1%. A 17% increase in sales to EUR 5.4 billion was nevertheless not enough to break even.

    The Group loss widened by around EUR 100 million to EUR 230.2 million. The fact that the loss per share "only" fell from EUR 1.21 to EUR 1.68 was due to the capital increase carried out last year. That also improved the equity ratio (25.9% vs. 17.5%) and enabled a net cash position of EUR 423.7 million to be built up (previous year: net debt of EUR 40.9 million). The order intake and the increase in installed capacity were positive factors.

    The outlook for the current fiscal year made stock market participants more optimistic, even though risks could spoil the Company's forecast. The northern Germans expect consolidated sales of EUR 5.4 to 6.0 billion in 2022. An EBITDA margin in the range of 1 to 3.5% should be achieved. However, this does not take into account "any costs for organizational restructuring and geopolitical events."

    In addition, it is unclear whether cost increases can also be passed on to customers. As a result, another year of losses is highly probable. Analysts do not expect the Company to be back in the black until 2023. In the meantime, experts are optimistic about the stock and formulate average price targets of just under EUR 20. Nordex will publish its first-quarter results on May 12.

    Altech Advanced Materials - Revolution

    High-performance rechargeable batteries are needed for the rapid expansion of electromobility. Here, the Heidelberg-based company is using innovative processes. The nanocoating of battery materials with high-purity aluminum oxide (HPA) and silicon enrichment can prevent the deposition of lithium particles on the electrodes. The problem of current processes that lead to a loss of capacity after the first charge is thus addressed.

    The Altech solution can increase the performance of lithium-ion batteries by around 10% and extend their service life by up to 30%. The Company is making further research efforts to increase the silicon content of the anode. If successful, this could boost performance by a staggering 50 to 100% and leave envious competitors in its wake.

    For the production of the anode material, the first step was to acquire a site in Schwarze Pumpe, south of Cottbus. Planning and approval procedures for the pilot plant are currently underway. At the highest stage of expansion, the plant is expected to employ 150 people and produce around 10,000 tons per year.

    With its choice of location, Altech is seeking proximity to future customers. Several battery producers are located in the area, including Tesla's Gigafactory. The Company's ambitious goal is to become the world market leader in the nanocoating of battery materials. With a current market capitalization of just under EUR 6 million, the stock market has not yet priced this in.

    Varta - Countdown

    The South German share has lost around 30% in the last 12 months. New momentum could come with the upcoming publication of the figures for the past fiscal year and an outlook. For 2021, the group had forecast sales of EUR 900 million and an adjusted EBITDA margin of 30%.

    Because of the not favorable valuation with a 2022 P/E ratio of 26 with moderate growth data, a concretization of the growth plans concerning the newly developed V4Drive cells should do the share certificates good. Last year, Varta announced its entry into the e-mobility business with the production of high-performance batteries. Analysts currently estimate the share's upside potential at about 25%.


    Renewable energies and e-mobility are megatrends that investors can hardly ignore. With the confirmation of the medium-term forecast, investors can again slowly set their sights on Nordex. Pointing the way for Varta is the concretization of growth plans. With its innovative solutions, Altech has the potential to revolutionize battery technology.


    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.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Stefan Feulner on May 21st, 2024 | 07:00 CEST

    Lynas, Almonty Industries, General Motors - Is the trade war escalating, and what is Tesla doing?

    • Mining
    • Tungsten
    • Electromobility
    • RareEarths

    The stock markets continue their record-breaking run. The Dow Jones Industrial has climbed to the 40,000-point mark for the first time in its history, and the DAX is also on the verge of breaking through the 19,000-point barrier. So far, so good, one might say. However, something is brewing in the background with regard to the trade war between the US and China, which could put enormous pressure on company margins in the future. As a result, critical commodities, in particular, are likely to be on the verge of a strong upward impulse.

    Read

    Commented by Armin Schulz on May 15th, 2024 | 06:45 CEST

    Volkswagen, Desert Gold, RWE - There is significant upside potential here

    • Mining
    • Gold
    • Electromobility
    • Energy

    The search for stocks with upside potential is like a treasure hunt in the depths of the financial markets. It combines analysis and intuition to find companies with solid fundamentals, innovation, and a good market environment for growth. Investors must show foresight and recognize many factors that make a share special. We have selected three candidates who have not stood out in recent months but still have significant catch-up potential.

    Read

    Commented by André Will-Laudien on May 6th, 2024 | 07:30 CEST

    Attention e-mobility 2.0, now China is in demand! BYD, Almonty Industries, VW, and Mercedes in focus

    • Mining
    • Tungsten
    • Electromobility

    Even though e-mobility has stuttered in Germany since the scrapping of the environmental bonus, the production of new vehicles "Made in China" is running at full speed. Manufacturers are still trying to pack more range, durability and stability into the units. Conceptually, electric vehicles only make sense if inexpensive electricity can be used for charging. Fast charging stations on the highway cost between 55 and 95 cents per kilowatt hour; Tesla charges an average of 43 cents but asks external customers to pay up to 64 cents. Without the tax disadvantage, optimized diesel vehicles have the same operating costs as electric vehicles. Where the combustion engine clearly scores points, however, is in winter operation, independence, and range. What is more, the battery in an electric vehicle needs to be replaced after 10 years, while the diesel engine has only just warmed up with 150,000 km of performance. Where are the opportunities for shareholders?

    Read