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July 4th, 2023 | 07:30 CEST

Records upon records at Tesla, BYD, Almonty Industries and XPeng!

  • Mining
  • Tungsten
  • Electromobility
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Led by the innovation driver Tesla, which delivered better-than-expected quarterly delivery figures, Chinese competitors also boasted record sales. Thus, Elon Musk's plan to boost volumes through discounts worked. The increasing sales raise the demand for critical metals for the production of electric vehicles, benefiting the producers of these scarce resources in the long run.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , ALMONTY INDUSTRIES INC. | CA0203981034 , XPeng Inc ADR | US98422D1054

Table of contents:

    BYD - Records non-stop

    The investment community has already become accustomed to Warren Buffett's investment vehicle, Berkshire Hathaway, which is gradually reducing its holdings of BYD shares. He can be forgiven for that. After all, the Company has been able to increase in value by a factor of around 33 since its investment in 2008. The investing legend sold 2.5 million pieces of Hong Kong-listed shares last week, with a total value of USD 86 million, bringing its ownership stake in the Shenzhen-based company down to 8.98%.

    Berkshire Hathaway thus heeded the old stock market adage "..sell on good news". Because almost in parallel new sales records ran over the stock exchange tickers. The world's largest electric car maker sold 253,046 units in June, more than a quarter of a million vehicles, beating the record it set just a month earlier by 5.3%. In May, deliveries still totaled 239,092 vehicles. Of the vehicles sold in June, BYD delivered 128,196 pure electric cars, up 7.2% from May. It also sold 123,489 plug-in hybrid vehicles, up 3.4%.

    In the first half of 2023, the "Build Your Dream" company thus nearly doubled its sales compared to the same period last year, with 1.26 million electric vehicles sold. Following the better-than-expected sales figures, analysts at Credit Suisse reiterated their price target for BYD at HKD 430 and their "outperform" rating.

    Almonty Industries - Jump in profits expected

    Everything is in short supply due to the high demand resulting from the energy transition. Whether lithium and tungsten for battery production or copper and rare earth metals, demand already exceeds the available supply. In the case of tungsten and rare earth metals, the currently increasing geopolitical conflicts between the West and China also play an important role, as the Middle Kingdom has a quasi-monopoly on the entire value chain. Thus, despite the current corrections in critical metals, industry experts expect the positive trends to continue in the long term due to the enormous demand.

    While production sites for rare earths are scarce in the Western hemisphere, and politicians are frantically trying to promote alternatives through high subsidies, tungsten production is emerging in South Korea, driven by Canadian company Almonty Industries. Almonty aims to be responsible for around 30% of the world's tungsten supply ex-China when operating at full capacity.

    The analysts of Sphene Capital predict a target price of CAD 1.69 for Almonty Industries, which currently has a market value of CAD 136.82 million at a share price of CAD 0.60. At the current level, the title thus has a potential of just under 180%. According to the analyst team, they expect a significant increase in both revenue and profit once production starts in the following year. They anticipate that revenue alone will double compared to the current year, reaching CAD 63.7 million. In 2025, sales are expected to exceed CAD 100 million. EBITDA is expected to grow to CAD 23.2 million in 2024 and CAD 47.7 million in 2025, and net income from CAD 8 million in 2024 to CAD 26.3 million in 2025. If these projected figures are met, Almonty Industries may undergo a reassessment and potential revaluation.

    XPeng - Advance praise strengthens share price

    Guangzhou-based electric vehicle company XPeng sent a clear signal with a share price increase of over 35% to USD 13.42. One reason for this the publication of the launch date of its new sport utility vehicle, the G6. The delivery date for the coupe SUV was scheduled for July. With a retail price of around EUR 27,000, the latest model stands out mainly for its range of over 580 km and acceleration from 0 to 100 km/h in 3.9 seconds. XPeng offers two different drive models. The two-wheel drive achieves an output of up to 218 kW with a torque of 440 nanometers, while the all-wheel drive variant can offer an output of up to 358 kW and a torque of up to 660 nanometers in combined form.

    The Chinese company received a further boost after announcing sales figures for June and the second quarter. In June 2023, XPeng rolled out 8,620 Smart EVs, up 15% month-over-month, with P7 series shipments growing 17% month-over-month. The Company has now achieved five consecutive months of positive shipment growth.

    Total Smart EV deliveries in the second quarter of 2023 were 23,205 units, up 27% from the previous quarter. By June 30, 2023, XPeng sold over 300,000 Smart EVs.

    Row upon row of electric carmaker sales records tumbled this past June. BYD cracked the 250,000 mark, while XPeng increased sales for the fifth month. At Almonty Industries, analysts expect sales and profits to explode after the Sangdong mine comes on stream.

    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.

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    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

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