RENK, Almonty Industries, thyssenkrupp: Three stocks that are benefiting NOW from the new security dividend

RENK – Strong start to the year with record figures and analyst optimism

RENK has made a dynamic start to 2025. The drivetrain technology specialist more than doubled its order intake in the first quarter, posting an impressive increase of 163.5%, resulting in a record order backlog of EUR 5.5 billion. This provides an excellent basis for the years to come. The Company also posted strong growth in revenue and operating profit. Revenue rose by 14.7% to EUR 273 million, while adjusted EBIT increased by over 38% to EUR 38 million. The EBIT margin improved significantly to 14.1%. The defense business is clearly driving this strong start. Management has confirmed its full-year guidance.

A closer look at the segments paints a clearer picture. The Vehicle Mobility Solutions (VMS) division is sprinting ahead. Order intake quadrupled, revenue rose by 28%, and EBIT by 47%. Large defense contracts are coming in, such as for US combat vehicles. The Marine & Industry (M&I) business is showing mixed signals. While order intake grew by 25%, revenue declined slightly, primarily due to project postponements. However, profitability improved significantly here. The Plain Bearings segment performed solidly in line with plan, with moderate revenue and EBIT growth, although order intake declined slightly.

The positive development has also caught the attention of analysts. Several analysts have recently raised their price targets for RENK significantly, underscoring their confidence in the Company's future prospects. Berenberg, for example, has raised its target to EUR 84, while Kepler Cheuvreux has even raised its target to EUR 85 and upgraded its rating to "Buy." Deutsche Bank is also more optimistic and raised its target to EUR 73. It justifies this primarily with the strong operating momentum, the huge order backlog, and the continuing tailwind from global defense spending. These assessments signal further confidence in RENK's growth model. The share is currently available for EUR 68.35.

Almonty Industries – Tungsten gem with underestimated strategic value

While some competitors, such as MP Materials in the critical minerals sector, are benefiting from political signals and high visibility, Almonty Industries still shows a striking valuation gap. The Company is building real infrastructure, reducing Western dependence on China, and dominating the strategic tungsten market. Despite tangible progress and ongoing production in Europe, however, it continues to be valued as a pure exploration company, even though competitors with weaker fundamentals command higher valuations. This gap reflects less of an operational reality and more of a market inefficiency.

The key to Almonty's potential lies in the Sangdong project in South Korea. The mine has a life span of over 90 years and contains high-grade tungsten deposits. It is becoming one of the largest tungsten mines outside China, fully approved and with government support. Long-term off-take agreements, including those for the US defense industry, are already in place. Sangdong thus functions not only as a mine, but also as a stabilizing pillar in fragmented supply chains. However, the current valuation still treats the project as a vision for the future, despite commissioning being imminent.

According to analysts, the undervaluation is mainly due to low awareness compared to better-marketed players. The recent NASDAQ listing significantly improves visibility. The start of production in Sangdong will be decisive. Once production begins, Almonty will transition from a project story to a cash-flow-generating producer with a unique strategic position. Several research firms see massive catch-up potential here. Sphene Capital and GBC have set price targets in the CAD 8.40-8.50 range. Yesterday, US research firm Alliance Global Partners published its study on Almonty shares, which included a price target of USD 6.75. The analysts point to the striking valuation gap compared to comparable companies such as MP Materials, despite Almonty's significantly stronger growth outlook. The market is likely to correct this discrepancy as soon as the operational performance becomes visible. The share is currently trading at USD 3.66 on the NASDAQ.

thyssenkrupp – Between restructuring, marine boom, and steel crisis

The Essen-based industrial giant is resolutely pushing ahead with its restructuring. The spin-off of the marine division, TKMS, is progressing particularly dynamically. Following the Supervisory Board's decision, shareholders will vote on the planned IPO at an extraordinary general meeting on August 8. thyssenkrupp will retain a majority stake. TKMS is performing strongly with a record order book of around EUR 18 billion and growing profitability. Instead of a stake, the German government is securing comprehensive rights of co-determination via a "security agreement." At the same time, the automotive division is being restructured to make it fit for the capital markets, with four focused business units effective from October.

The problem child steel division is showing extreme contrasts. On the one hand, thyssenkrupp Steel is investing EUR 800 million in high-tech facilities, such as the new rolling mill in Duisburg, to enhance quality and efficiency for e-mobility and the energy transition. On the other hand, the weak market environment requires drastic cuts. The restructuring package negotiated with the IG Metall union provides for production capacities to be reduced to 8.7–9 million tons, combined with job cuts of up to 1,600 by 2029. Additional efficiency measures will impact approximately 3,700 jobs. Reduced working hours and cuts in special payments are weighing on the workforce. High energy costs and international punitive tariffs are exacerbating the pressure.

The recent share price rally is mainly fueled by hopes of value realization through the TKMS spin-off and portfolio concentration. However, operating performance is lagging. Revenue and operating profit in the steel and automotive businesses are stagnating in the face of lower demand and price pressure. The equity ratio developed positively to a solid 37%. Thanks to special items, the Company as a whole closed with a net profit of EUR 167 million. For investors, thyssenkrupp remains a game with opportunities due to the marine boom, but also faces risks such as the ongoing steel crisis and global trade conflicts. The shareholder decision on TKMS on August 8 will be decisive for the further direction. A share currently costs EUR 10.70.

The need for security is driving specialized companies in times of geopolitical tension. RENK is benefiting from record orders and strong defense business, supported by analyst optimism and clear growth momentum. Almonty Industries remains an undervalued gem. The Sangdong tungsten project, which is about to begin production, positions it as a strategic raw material pillar outside China. The current valuation does not yet reflect this potential. thyssenkrupp is balancing between opportunities such as the naval boom with TKMS and legacy issues.