Close menu

November 14th, 2023 | 07:15 CET

Plug Power with Warning Signals! Should you buy SMA Solar and Altech Advanced Materials shares?

  • Technology
  • Innovations
  • renewableenergies
  • Solar
  • Hydrogen
Photo credits: SMA Technologies AG

Anyone who had hoped that Plug Power's quarterly figures would herald a recovery in the share price was disappointed. On the contrary, the figures should set alarm bells ringing for shareholders of the hydrogen specialist because the investor favorite is running out of money! Is there still hope? In contrast, SMA Solar and Altech Advanced Materials are performing well. Although the share prices of the solar and battery companies have also fallen, there is positive operational news. Altech has published a strong update on its solid-state battery production plant. SMA is significantly increasing profits, but analysts are not satisfied.

time to read: 4 minutes | Author: Fabian Lorenz

Table of contents:

    Altech Advanced Materials again delivers convincing data

    The German company Altech Advanced Materials AG wants to revolutionize the energy storage market with a newly developed sodium chloride solid state battery, CERENERGY®. The feasibility study for the planned factory in Saxony is currently being prepared. The latest update from the feasibility study is quite something. In future, CERENERGY® batteries with an output of 120 MW per year could roll off the production line, which is 20% more than initially planned. This increase comes without additional costs but solely due to technical optimization in partnership with the joint venture partner Fraunhofer IKTS and other suppliers. This should enable the plant to be operated even more profitably. The final feasibility study is to be published in the coming months.

    Altech CEO Uwe Ahrens expressed great confidence: "We are making good progress with our production plant for CERENERGY®. Through optimized design enhancements, we have succeeded in significantly expanding production capacity without incurring additional investment costs for Altech. We are very pleased to have already achieved a 20% increase in production in the current planning phase. This shows once again that, together with partners such as the Fraunhofer Institute IKTS, we are on the right track to develop and implement a performance-optimized production plant for our innovative sodium chloride solid-state battery, CERENERGY®."

    The Altech battery, which consists of common salt, nickel and ceramics, does not require critical raw materials such as graphite, lithium and cobalt. In stationary operation, Altech sees a cost advantage of around 50% compared to lithium-ion batteries, taking into account total costs and daily charging cycles. And demand is increasing, for example, for storing energy from the sun and wind. Experts predict that the market for energy storage systems will grow to USD 15.1 billion by 2027 - in 2022, it was only USD 4.4 billion.

    A pilot plant for the production of performance-enhancing anode material (Silumina) for use in electromobility is also currently being built in Saxony. The Altech technology is intended to significantly improve the range and charging speed of current batteries. The preliminary feasibility study is convincing, with an annual EBITDA of USD 65 million and a cash value of over USD 500 million. There may be news on December 5, 2023, when Altech's management is set to present at the virtual investor conference, iif. Other German companies such as K+S, Vectron and aixtron will also be presenting. Click here for free registration.

    SMA Solar: Analysts not convinced

    SMA Solar's operating performance and share price are also currently going their separate ways. The inverter manufacturer successfully continued its growth in the third quarter of 2023. Overall, Group sales rose by 84.7% to EUR 1.3 billion in the first nine months of 2023. In the Home Solutions segment, sales even more than doubled to EUR 486.2 million. SMA also significantly increased its operating result (EBITDA) by 361% to EUR 231.2 million. Consolidated net income rose significantly from EUR 11 million to EUR 180.4 million in the reporting period.
    As of September 30, 2023, the order backlog remained at a very high level of EUR 2.0 billion (September 30, 2022: EUR 1.7 billion). The sales and earnings forecast for the 2023 financial year, which was raised again on October 4, 2023, was also confirmed. Sales are expected to be between EUR 1.8 billion and EUR 1.9 billion, and EBITDA between EUR 285 million and EUR 325 million.

    Analysts are nevertheless cautious. Jefferies and Deutsche Bank recently rated the SMA share as a "Hold". Following the disappointing figures from US solar companies such as SolarEdge, experts expect 2024 to be a challenging year for SMA as well.

    Plug Power: One shock after another

    It is currently impossible to predict when Plug Power will return to positive growth. It is worth noting that the hydrogen pioneer has never celebrated operational success in its corporate history. So far, the US company has gotten by with the hope of a breakthrough in the billion-dollar hydrogen market and rising sales. However, in times of high interest rates, investors seem to be losing patience.

    Although Plug Power has recognized the signs of the times and proclaimed the goal of breaking even, there is no trace of this in the quarterly figures. With sales of USD 669 million in the first nine months, the Company is a long way off the forecast of USD 1.2 billion for the year. Worse, the Company simply cannot get to grips with the loss. After Plug Power lost USD 284 million in the third quarter, losses in the first nine months have now totaled USD 863.9 million, exceeding sales. With a cash balance of USD 1.2 billion, the funds would only last until the end of 2024. Therefore, it is unsurprising that even Plug Power has confirmed to the US Securities and Exchange Commission (SEC) that there are "significant doubts about the Company's ability to continue its operations." The share is currently trading at around USD 3. Nevertheless, the Company maintains a hefty USD 2 billion market capitalization.

    It is unlikely that Plug Power will be able to raise fresh debt or equity capital. However, the question remains at what price and why a turnaround in operational business should be achieved. In contrast, Altech Advanced Materials offers an exciting newcomer story in the battery market and has a strong parent company in Australia. SMA Solar has also already demonstrated that it can be profitable, although investors should monitor overcapacity in the solar market.

    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 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

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author

    Related comments:

    Commented by André Will-Laudien on February 23rd, 2024 | 07:00 CET

    Will GreenTech soon be back in vogue? Nel ASA, Klimat X, Nordex, and Plug Power are under analyst scrutiny!

    • Sustainability
    • GreenTech
    • renewableenergies
    • Hydrogen

    Despite new record highs in global stock markets, the GreenTech sector has yet to show any gains. The hydrogen sector, in particular, which was hyped in 2020/21, has been struggling for the past three years. With share price losses of 70 to 90%, investors are hopeful that a bottom could be reached in the foreseeable future. We analyze whether this could already be the case and present an alternative in the form of Klimat X. Business is running smoothly here, and the CO2 savings are even certified.


    Commented by Juliane Zielonka on February 21st, 2024 | 07:15 CET

    Saturn Oil + Gas, Plug Power, Deutsche Pfandbriefbank - Energy shares and falling knives - where is it worth getting in?

    • Mining
    • Oil
    • Hydrogen
    • greenhydrogen
    • Banking

    The Canadian company Saturn Oil & Gas has announced its capital and operating budget plans for 2024. The main focus is on sustainable oil and gas production with high capital returns, a structured capital allocation and continuous rapid debt repayment. Plug Power is also gaining momentum and taking strong cost-saving measures to maintain its position at the forefront as a green hydrogen provider. Deutsche Pfandbriefbank (pbb) came under the spotlight last week as investors dumped shares due to its involvement in the US office real estate market. Is this bank a falling knife, or does this week offer a potential entry point? We provide the background.


    Commented by Fabian Lorenz on February 20th, 2024 | 08:00 CET

    Sell Varta shares? Nel and Altech Advanced Materials with new opportunities

    • Technology
    • Batteries
    • renewableenergies

    The bad news for Varta seems to be unending. First, a cyber attack paralyzed the Company. Now, analysts are lowering their thumbs and recommending selling the share. Estimates for the years 2024 and 2025 have been lowered. As a result, Altech Advanced is increasingly becoming the German battery hopeful. Even though Altech's share price has declined significantly in recent months, the Company is on track operationally. The current year will be exciting. Things also remain exciting for hydrogen shares. While Nel and Plug Power & Co. still need to prove the future viability of their business models, they are receiving billions in support.