Shock for Siemens Energy share! BYD and Altech Advanced Materials are going full throttle!

Altech Advanced Materials: Solid-state battery exceeds expectations

Exciting news from Altech Advanced Materials. The Company is working on next-generation battery technology in Germany together with its Australian parent company and Fraunhofer. Recently, there was an update on the construction of the prototype of the CERENERGY® BatteryPack ABS 60. So far, expectations for the revolutionary solid-state battery have been exceeded.

All 240 cells of the first BatteryPack ABS 60 have now been manufactured, assembled and put into operation at the Fraunhofer IKTS pilot plant in Thuringia. The subsequent test phase was convincing: Even during production, the design of the cells was improved, thereby increasing the energy capacity and reducing the nickel content. This allows charging and discharging times to be improved, and unit costs to be reduced. In addition to the individual battery cells, the cell contacting system (CCS) was also put through its paces and positively evaluated. All results will be incorporated into the series design of the cells and should further improve the manufacturing processes, performance, and costs.

A total of five modules of the BatteryPack ABS 60 with a 60-kWh capacity are to be produced in the pilot phase. Battery modules will then be assembled into the first prototypes at the Fraunhofer IKTS in Dresden and made available to potential customers for testing.

This should result in a sustained positive news flow for the rest of the year, benefiting the Altech share. Equity will contribute to security until the product is ready for the market. Altech has reported that equity increased from EUR 5 million at the end of 2023 to EUR 7.9 million in the first half of the year.

BYD: Going full throttle in Europe

BYD is also currently going full throttle. The Company plans to overrun the global market with electric vehicles and is launching one model after another. It is already the market leader in its home country of China. The focus is now on Europe, and the aim is to achieve a market share of 5% as early as next year. In Poland, BYD is working with the largest national car dealer Cichy-Zasada. The handover of the first BYD Seal to its new owner has just been celebrated in the capital, Warsaw. Further locations for the sale of electric vehicles are planned in Poznan, Wroclaw, Krakow, and Szczecin.

The model range available in Europe includes the ATTO 3, the TANG, the HAN and the SEAL. Rapid expansion is likely. While deliveries are currently still being made from China, the vehicles for Europe are to be produced in Hungary and Turkey in future. This is likely also to avoid the punitive tariffs on e-cars from China. Together, both locations are to have a total production capacity of 250,000 vehicles.

Siemens Energy: Is the share price facing possible halving?

Shock for Siemens Energy shareholders. At the beginning of the week, JP Morgan published a study with the conclusion "Underweight". The analysts have set a price target for the share of EUR 13. The share is trading above EUR 24 and would have to almost halve in price to reach the target price. Although the JP Morgan analysts also praise the quarterly figures published last week, the analysts also see negative effects such as higher minority interests and the increasing need for working capital.

JP Morgan's valuation estimate of EUR 13 per share for Siemens Energy appears to be relatively isolated, as indicated by the stock's reaction, which was virtually unaffected despite the report coming from a major analyst firm. However, in this case, investors seem to be taking their cue from Goldman Sachs, Deutsche Bank and Berenberg. These analysts had recommended Siemens Energy as a "Buy" after the quarterly figures, with slightly raised price targets ranging from EUR 29 to EUR 35.30.

The share of Siemens Energy has recovered surprisingly quickly from the problems of its subsidiary Gamesa last year. After the strong share price performance, a consolidation is healthy. Investors should bear in mind that not all of Gamesa's problems have been solved and that the Company is currently being supported by other areas. Altech Advanced Materials is also feeling the effects of the current lack of demand for shares in the renewable energy sector. However, if the Company continues to deliver what it promises, investors have a great opportunity here. It is clear that next-generation energy storage systems are the key to the energy transition's success. BYD shares are also suffering from the negative sentiment in the sector. Added to this is the China risk.