Close menu

July 27th, 2023 | 06:50 CEST

RWE, Regenx Tech Corp., Varta - Under the spell of the numbers

  • cleantech
  • Energy
  • renewableenergies
  • Batteries
Photo credits:

The number season for the first half of 2023 is currently reaching its peak. Google parent Alphabet was able to beat analysts' expectations. In contrast, Deutsche Bank reported lower profits than expected. Due to weaker potash fertilizer prices, K+S AG had to lower its profit forecasts. In addition, there were further surprises that will likely affect future share prices.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: RWE AG INH O.N. | DE0007037129 , REGENX TECH CORP | CA75903N1096 , VARTA AG O.N. | DE000A0TGJ55

Table of contents:

    Varta AG - It remains critical

    As we mentioned in one of our recent reports, the producer of microbatteries, household batteries, and energy storage systems is still facing challenges, and the current price recovery appears to be a bear market rally within the overall downtrend. Now the said rally was abruptly ended by disappointing figures for the second quarter, which did not yet bring any improvement in operating activities.
    Based on preliminary figures, sales in the second quarter amounted to approximately EUR 175 million, around 8.6% less than in the same period last year. While the second quarter of 2022 still brought in an adjusted operating profit of EUR 30.8 million, the battery group slipped into the red with minus EUR 5 million.

    Due to the weak first half of the year, sales for the full year have been adjusted downward. The SDAX-listed company now only expects to achieve the lower range of EUR 820 to 870 million. Ebitda is forecast to be between EUR 40 million and EUR 60 million, significantly below analysts' estimates.

    Following the publication of the figures, the analyst firm AlsterResearch reiterated its "sell" investment recommendation and lowered the price target for the Varta share from EUR 16 to currently EUR 15.

    Regenx Tech Corp. - Unlimited potential

    Regenx Tech, listed on the Canadian Securities Exchange and in Frankfurt, is not so convincing because of its half-year figures but rather because of its market potential for the coming years. The Company, which has a market capitalization of EUR 22.74 million, focuses on the recycling of diesel catalysts. The market volume, still at USD 24.7 billion in 2017, is expected to grow to USD 39.8 billion by 2025. Using an environmentally friendly processing technology, the Canadians recover over 90% of the precious metals platinum and palladium, in contrast to conventional methods.

    Approximately 84% of the world's annual palladium supply is needed for catalytic converters in cars, heavy vehicles and industrial equipment. However, roughly USD 21.2 billion of precious metals from diesel catalytic converters are not recycled each year, ending up in landfills and contributing to the depletion of elemental resources.

    Regenx Tech uses proprietary chemical and process engineering technology that extracts the metals from the ground materials, puts them into a solution through chemical processes, and dissolves them out as a concentrate using the proprietary system process. As a result, significantly less carbon dioxide is emitted, leading Regenx Tech to seek carbon credit trading in the future.

    The St. Albert-based company is providing proof of concept with the startup of Module 1 of the processing plant in Greeneville, Tennessee. The recycling plant is expected to reach a capacity of 2.5 tons per day at full capacity. To further develop Catalyst Module 1, Regenx Tech closed the first tranche of its previously announced financing for gross proceeds of CAD 2,113,830. Several plants are planned to follow in the future, initially in North America and, in a second step, overseas.

    RWE AG - Convincing performance

    While the battery producer disappointed with its figures for the first half of the year, the energy supply company RWE AG impressed analysts and investors. The Essen-based company exceeded forecasts for the first half and subsequently raised estimates for the full year 2023.

    The Company said that RWE's adjusted earnings before interest, taxes, depreciation, and amortization at the group level are now expected to be between EUR 7.1 billion and EUR 7.7 billion instead of EUR 5.8 billion to EUR 6.4 billion. For its core business, RWE expects adjusted EBITDA of between EUR 6.3 billion and EUR 6.9 billion and adjusted EBIT at Group level of between EUR 5.0 billion and EUR 5.6 billion. Previously, the forecast here was EUR 3.6 billion to EUR 4.2 billion. In terms of adjusted net income, the Essen-based Group sees an increase of between EUR 3.3 billion and EUR 3.8 billion for the full year.

    On a preliminary basis, RWE generated adjusted EBITDA at the Group level of EUR 4.5 billion in the first six months of the year, compared with EUR 2.86 billion in the same period last year. Adjusted EBIT reached EUR 3.5 billion, and the Group's adjusted net income increased to EUR 2.6 billion. Only EUR 1.57 billion was earned in the first half of 2022.

    Following the convincing figures, analysts at DZ Bank upgraded RWE shares to "buy" and raised the price target from EUR 53 to EUR 55. US investment bank Goldman Sachs reiterated its price target of EUR 60 and also sees the energy supplier as a buy candidate.

    Varta disappointed its investors once again with the figures for the second half of the year and had to concede the forecasts for the full year. In contrast, the energy group RWE impressed with a better-than-expected first half and consequently raised its estimates for the current fiscal year. Regenx occupies a gigantic market with its recycling 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 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

    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

    Related comments:

    Commented by Juliane Zielonka on September 21st, 2023 | 07:55 CEST

    dynaCERT, Amazon, FREYR Battery - Those who are focused on CO2 reduction and successful at it

    • Hydrogen
    • greenhydrogen
    • Batteries
    • CO2

    At the Fleet Services Expo in Ottawa, dynaCERT will showcase its "Hydrogen-on-Demand" technology. For the first time, dynaCERT is demonstrating its fully functional HydraGEN™ technology on a company-owned Mercedes Sprinter Van, providing environmentally friendly hydrogen power to fleet vehicles in Ontario. This innovative solution reduces CO2 emissions and also lowers operating costs. On the other hand, as the upcoming seasonal business approaches, Amazon is increasing its workforce, most of whom use non-CO2-reducing vehicles to make deliveries in the US. A renowned institute has, therefore, removed Amazon from the CO2 index. Meanwhile, the Norwegian battery manufacturer FREYR Battery is moving to the US. The Company has filed its documents for incorporation in Delaware and sees a lot of benefits for business expansion and shareholders with its US location.


    Commented by Nico Popp on September 21st, 2023 | 07:00 CEST

    Turnaround cancelled? Where 100% is possible: Varta, BYD, Manuka Resources

    • Mining
    • Vanadium
    • PreciousMetals
    • Batteries
    • Electromobility

    When soccer players move to a better team, it usually comes with higher earnings. Sometimes, the training is more intense, and the tasks off the pitch are more extensive. It is no longer comparable to the idyllic life at their former club. Athletes are then faced with the question, "Give up or bite the bullet?" The situation is similar for battery pioneer Varta, which is implementing its e-car plans with Porsche, of all companies. The sports car manufacturer offers major growth opportunities but is also considered meticulous among engineers. We highlight Varta's stock, take a look at BYD and outline opportunities at a company many have never heard of!


    Commented by Nico Popp on September 20th, 2023 | 08:10 CEST

    Investing in Value Chains - The End for an Institution: AMS Osram, Volkswagen, Almonty

    • Mining
    • Tungsten
    • Electromobility
    • renewableenergies

    For years, the Transparent Factory in Dresden was a symbol of confidence at the end of the 1990s: Volkswagen wanted to catch up with the premium class in the modern car factory and had the Phaeton luxury sedan rolling off the production line there until 2016. After several years, during which the ID.3 electric car was manufactured there, the site is on the brink of closure - at least as a production facility. The property in the Elbe metropolis is too chic for VW not to find another use for it. The automotive industry is also undergoing change elsewhere. We outline three current cases and highlight possible investment opportunities.