Rheinmetall, Power Nickel, and BYD in focus – The winners of the next decade

Rheinmetall – Potential for returns

In recent years, the German technology company Rheinmetall has become a major global player in the defense and security sector – and this is impressively reflected in its financial figures. With an order backlog of around EUR 52 billion – 41% more than in the previous year – and a sales increase of almost 40% in 2024, Rheinmetall shows that strong growth and a solid market position are no coincidence. Analysts believe the Company will achieve a target originally set for 2026 as early as 2025, with sales of between EUR 13 billion and EUR 14 billion.

A recent major order in the field of artillery ammunition illustrates the Company's relevance on the international stage. In January 2025, Rheinmetall secured a lucrative deal to supply 155 mm artillery ammunition worth EUR 21 million. The contract, which includes five-digit quantities of the M107 ammunition, will be processed in the first half of 2025. In Germany, the Company secured an order in the high double-digit millions from the German Armed Forces for 120 highly mobile rescue stations. In addition to the vehicles, personnel training is also part of the contract.

Beyond purely military business, Rheinmetall has strategically diversified and is also advancing into other future-oriented markets with its solutions. On January 10, it secured a 51% majority stake in blackned GmbH, which specializes in the digitalization of armed forces. The outlook for 2025 is promising: market observers estimate sales of EUR 12.6 billion and earnings per share of around EUR 29. The share has made a good start to the year, trading at EUR 654.60, just below its all-time high of EUR 663.80.

Power Nickel - Opportunities for the next decade

Power Nickel, a Canadian exploration company, is on the threshold of strong growth thanks to major exploration successes. The original nickel project has grown into a polymetallic resource developer. The increasing demand for strategic metals, particularly as a result of the global shift towards electric mobility and renewable energies, and geopolitical tensions provide a foundation for future growth. Analysts see considerable potential for further upside after an impressive performance in 2024, driven by planned resource expansions and exploration successes. Last year, commodities experts such as Rob McEwen and Robert Friedland also bought the stock.

Power Nickel's activities focus on the highly promising Nisk project in Quebec. Originally designed for nickel production, the project has developed into a significant polymetallic resource and also offers copper, platinum group metals (PGM), gold, and silver. In particular, the Lion Zone discovered in 2024 impresses with outstanding mineral grades: copper grades of up to 8% and PGM grades of over 22 g/t underscore the project's potential. A 50,000 m drill program planned for 2025 should expand the resource and connect the main zones to exploit the full exploration potential.

The year 2025 promises to be exciting. In addition to the drilling program, metallurgical studies are planned for the second half of the year to demonstrate the project's economic viability and support it with figures. In addition, a spin-out of the Golden Ivan projects and those in Chile is to be pursued in order to concentrate fully on the Nisk project. Although the nickel market currently appears saturated, experts predict a shortage of strategic metals in the long term. This should further improve Power Nickel's market prospects. With a clear focus on resource expansion and ambitious development plans, the Company could significantly increase the value for its shareholders. The stock, which was still trading at CAD 0.21 last April, is now trading at CAD 1.04.

BYD – Challenging Tesla's pioneering role

Chinese electric vehicle pioneer BYD is positioning itself as a leading player for the future with a strong market position, technological innovations and a broad product portfolio. BYD offers investors an attractive growth proposition thanks to its innovative battery technology, comprehensive vertical integration, and ambitious expansion plans, particularly in Europe. This strategy enables significant cost advantages and strengthens competitiveness in an increasingly competitive market.

FY2024 impressively underscored BYD's ability to outpace the competition. The Company set a new benchmark with record vehicle sales of 4.3 million units, including an impressive 73% increase in plug-in hybrids. Pure-electric vehicle sales nearly matched Tesla with 1.76 million sales. At the same time, BYD strengthened its profitability, increasing its profit in the first half of 2024 by 24% year-on-year.

BYD plans to expand aggressively in the coming years – by the end of 2025, up to 120 dealerships are to be established in Germany alone. With a vehicle portfolio ranging from low-priced models such as the Seagull to premium vehicles such as the Han and Tang, BYD addresses a broad target group. The Company also remains a technology leader: solid-state batteries, which are planned to be market-ready by 2027, could provide a further competitive advantage and strengthen the Company's position in the long term. Nevertheless, it remains to be seen how the vehicles from China will be received in Germany and Europe. The stock has outperformed German automotive stocks over the past year and is currently trading at EUR 32.10.

All three companies presented have the opportunity to shape the next decade in their respective fields. Rheinmetall impresses with strong growth in the defense sector and strategic diversification, making it a heavyweight with considerable return potential. Power Nickel is an up-and-coming developer of critical raw materials that can actively support the energy transition with its polymetallic Nisk project. BYD continues its success as an electric vehicle pioneer with impressive sales figures and ambitious expansion plans in Europe, offering investors solid growth opportunities.