August 8th, 2024 | 07:00 CEST
Siemens Energy tops, Evotec shocks, and what is causing the dynaCERT share to explode?
The Evotec share lost more than 35% yesterday. The share was already trading at a multi-year low before this drop. Investors were particularly shocked by the adjustment to the EBITDA forecast. Additionally, the biotech company indicated that it plans to downsize. This year, Siemens Energy has shown how quickly a difficult situation can be resolved. On the verge of bankruptcy at the end of 2023, it is back on track, although not thanks to renewable energies. In contrast, dynaCERT has yet to see its share price explode. A former Daimler manager will take the helm in the coming days and is expected to secure orders in Europe. Additionally, dynaCERT investors are waiting for VERRA certification.
time to read: 3 minutes
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Author:
Fabian Lorenz
ISIN:
SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0 , EVOTEC SE INH O.N. | DE0005664809 , DYNACERT INC. | CA26780A1084
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
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Shares cloud
dynaCERT: Orders, new CEO, and capital secured
While the latest news from Siemens Energy and Evotec is moving share prices in different directions, the breakthrough at dynaCERT is imminent. The Canadians have invested over CAD 100 million in the development of their HydraGEN™ Technology in recent years. The patented system can be used to retrofit conventional diesel engines to reduce fuel consumption and emissions. The primary focus is on users of heavy vehicles in the mining, oil and gas, transportation, and power generation sectors. Sales got off to a successful start last year. Most recently, a Canadian company from the oil and gas sector ordered 84 units via sales partner Simply Green. This month, German manager Bernd Krüper will take over the management of the Company and is expected to use his contacts to push sales in Europe in particular. In July, dynaCERT had previously secured further capital to finance growth. The capital increase was even oversubscribed.
dynaCERT is currently valued at around CAD 90 million. What is still needed for a significant price jump is VERRA certification of the dynaCERT product range. VERRA has developed the world's leading quality standards for CO2 certificates. With the certification of HydraGEN™ products, trading in CO2 certificates would be possible and would generate revenue for both customers and dynaCERT. As a reminder, Tesla generates a large part of its profits from CO2 certificates.
Siemens Energy raises cash flow outlook
Siemens Energy has published convincing quarterly figures. Revenue increased by 18.5% to EUR 8.8 billion. Siemens Energy's earnings before special items were again positive at EUR 49 million. In the previous year, quality issues in Siemens Gamesa's onshore business, along with increased product costs and ramp-up problems in the offshore business, led to a billion-dollar loss. Siemens Energy reported a loss after tax of EUR 102 million (Q3 2023: EUR -2.9 billion). Free cash flow before taxes amounted to EUR 727 million and was thus significantly higher than the EUR 27 million in the same period of the previous year.
Siemens Energy is currently benefiting from strong demand, particularly outside of the renewable energy sector. Record order intake was reported in Gas Services, and record order backlogs were recorded in Gas Services and Grid Technologies.
Due to the good development in the first nine months, Siemens Energy raised its forecast for free cash flow before taxes for the full year from EUR 1.0 billion to between EUR 1.0 billion and EUR 1.5 billion.
Evotec shocks and saves
The Evotec share was one of yesterday's clear losers. The biotech company shocked investors by reducing its forecast. Evotec now expects revenue of EUR 790 million to EUR 820 million for the current financial year. Previously, a low percentage growth based on EUR 781.4 million in 2023 had been expected.
In response, research expenditure will be reduced to between EUR 50 million and EUR 60 million. Previously, it was expected to be more than EUR 58 million. Nevertheless, the adjusted EBITDA will be significantly lower than previously anticipated. It is projected to be only EUR 15 to 35 million, compared to more than EUR 66.4 million in 2023.
Evotec will focus on implementing realignment measures throughout the year. This realignment should lead to sustainable, profitable growth. Revenue growth is expected to be lower going forward.
Evotec CEO Dr. Christian Wojczewski: "*Evotec's key success drivers are its differentiated drug discovery and development platforms and the quality and expertise of its dedicated employees. *However, we are facing challenges that need to be addressed urgently, and I am convinced that realigning priorities with a refined outlook is the starting point to restore confidence, sharpen our organization's focus, and put Evotec back on the path to better performance and sustainable growth."
Hopefully, the bad news should now be over for Evotec. Nevertheless, the share is likely only for the brave. Siemens Energy has recovered surprisingly quickly from the Gamesa fiasco, but the share has already performed well, as yesterday's price reaction showed. At dynaCERT, investors can speculate on a massive jump in the share price when the VERRA certification comes through.
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