23. September 2021 | 10:37 CET
SFC Energy, Meta Materials, Lufthansa - Aiming high
"After the game is before the game". This soccer wisdom from coaching legend Sepp Herberger, who led Germany to its first World Cup title in 1954, can also be applied to business. The wheel continues to turn, with some companies already back to pre-Corona levels and others struggling with global supply chains. And the future around new technologies in terms of consumer electronics, aerospace or 5G communications promises breakthrough inventions.
time to read:
ISIN: SFC ENERGY AG | DE0007568578 , Meta Materials Inc. | US59134N1046 , LUFTHANSA AG VNA O.N. | DE0008232125
Meta Materials - Into new dimensions
With almost EUR 1.2 billion market capitalization, the Nasdaq stock Meta Materials already has unicorn status. At first glance, the stock, which went public in May and is valued at more than 330 times sales, appears overvalued. But the Canadians pioneered the new metamaterials megatrend over the past 10 years and have a multi-year competitive advantage with 149 patents filed, 82 issued, spread across 46 patent families, and eight registered trademarks.
The Company produces a range of highly functional materials and nanocomposites for diverse engineering applications. Its proprietary technology platform includes three core competencies: holography, lithography and wireless sensing with strong IT networking and artificial intelligence embedding. The metamaterials market is expected to grow at a compound annual growth rate of 23.7% through 2027, by which time experts estimate the market will be worth more than USD 10.7 billion in 2030.
Meta Materials specializes in the application of advanced functional films that block, diffract or amplify light. This technology is used in the generation of electricity and thermal energy and acoustics, sensor technology and the novel 5G technology. As the world moves toward renewable energy, the integration of metamaterials and nanocomposites is bound to increase.
The acquisition of Nanotech Security for USD 72.6 million, which is expected to close in October 2021, is expected to create synergies, accelerate scaling and expand the product portfolio. In addition, Meta Materials will work to double Nanotech's production capacity from a planned 7 million square feet to 15 million square feet by 2023. Meta Materials' 68,000-square-foot new facility in Nova Scotia will grow with the increased production capacity. This will enable them to become a market leader in providing high-volume optical metamaterials while reducing production costs. The Canadian Company has the potential to become a global leader in new materials. Investors should certainly watch the stock.
Lufthansa - Back to normality?
Hardly any other industry was hit as hard by the Corona pandemic as aviation. Billions in state aid were needed in several tranches to ensure the survival of the crane. With a capital increase of around EUR 2.1 billion, Lufthansa intends to gradually disengage itself from the state in the form of the silent participation of the Economic Stabilization Fund.
The new shares are to be offered to shareholders at a subscription ratio of 1:1 from September 22 to October 5 at a subscription price of EUR 3.58. This will allow shareholders to receive one new share at the subscription price for each existing share. If the stabilization fund, which currently holds just under 16% of the Company, participates in the capital increase, it will be able to start selling its Lufthansa shares at the earliest six months after completion of the capital increase.
The drop of more than 26% in the share, quoted at EUR 6.20, is thus attributable to the discount on subscription rights. This volatility is likely to continue until the end of the subscription period. A loss of state aid is a step in the right direction. Long-term investors who assume that life with Corona will return to normal could build up initial positions at the reduced level.
SFC Energy - Canada is calling
One of the leading hydrogen and methanol fuel cells suppliers for stationary and mobile hybrid power solutions, SFC Energy, reported follow-up orders from North America. In total, orders from several oil companies in Alberta, Canada, increased the Brunnthal-based Company's order volume to EUR 0.93 million.
"The follow-up orders impressively underline that users can rely on our comprehensive know-how and SFC Energy's many years of experience. Our frequency converters help our customers to set up applications in a more energy-efficient way. This saves resources and makes an important contribution to reducing the carbon footprint", says Hans Pol, COO of SFC Energy AG.
Strong half-year figures, progress in operating profitability, and innovative partnerships such as with the Norwegian hydrogen specialist Nel ASA should boost the SFC Energy share. The stock is worth buying at around EUR 24.
New materials for the future. Meta Materials is the pioneer in its field and should get a more significant piece of the pie thanks to its extensive patent collection. Lufthansa wants to become independent of the state and faces a promising season if the Corona situation normalizes. SFC Energy is also on course.