TeamViewer, Kodiak Copper, XPeng - Opportunities after the setback

TeamViewer AG - Profitability declines

After last year's fall, declining margins and two downward revisions of forecasts, TeamViewer is looking for a bottom. The preliminary figures for the full year 2021 and the forecast for the current year 2022 show that this is no easy undertaking. After the margin already fell by 47% in the past fiscal year, the Goeppingen-based Company now expects between 45-47%. Concerning billings for the invoiced sales of the coming 12 months, the pace is expected to slow down further. Between EUR 630-650 million are expected in this area, representing an increase of just under 20% compared with 2021.

The growing enterprise business is to be seen as an anchor and compensation for the declining billings business in the future. In the fourth quarter alone, the enterprise business grew by 107% to EUR 29.4 million YOY. In addition to the figures, management highlighted the acquisitions that have been fully integrated and significantly expanded the solution portfolio. In particular, according to CEO Oliver Steil, the industry-leading AR platform should strengthen the Company's position in key growth markets.

As a sign of confidence in its own Company, TeamViewer is launching a share buyback program of up to EUR 300 million or just under 10% of all outstanding shares. The share buyback is scheduled to start on February 3. The program is expected to be completed by the end of the year. "Most of the repurchased shares are to be canceled," the Company said.

TeamViewer met the already lowered forecasts with the preliminary annual figures; the annual report will follow on March 16, 2022. Still, the coming year is likely to be challenging, especially in billing growth. With the possible entry into a post-Omicron endemic, the home office issue should also be relaxed, and a partial return to the physical workday should be possible. As a result, the market for TeamViewer in this sector could already be saturated.

Kodiak Copper - Full of beans

At the moment, inflation is a global issue. Soaring energy prices and skyrocketing commodity prices are likely to continue to weigh on society over the next few years. Added to this is the extremely high excess demand for critical raw materials needed for the energy transition. Electric cars, solar panels and wind turbines play a major role in the fight against climate change. But according to a DIW study, their production could soon become much more expensive as prices for cobalt, copper, lithium and nickel rise. On the other hand, there is an extremely low supply; in the case of the red metal copper, which is existential for climate change due to its conductivity, a supply deficit already appeared on the market in 2019.

Over the past decade, the low copper price meant that little investment capital flowed into property exploration, but it is now urgently needed. Promising projects like Kodiak Copper's are few and far between, but they promise disproportionate return opportunities if exploration is successful.

Kodiak Copper focuses on its wholly-owned copper porphyry projects in Canada and the USA. The MPD project in the Quesnel Trough in the south-central Canadian province of British Columbia stands out. Here, high-grade mineralization has already been discovered within a broad mineralized envelope. In addition to the Man-Prime-Dillard project, producing mines of Copper Mountain, Highland Valley and New Afton are located in the immediate vicinity.

The year 2021 was more than successfully completed, despite adversities related to droughts and wildfires in the summer and a flood of the century in the fall. As a result, the most extensive drilling program in history was completed with 21,675m in 36 holes, a prospecting and trenching program with 1,755 soil and 176 rock samples, as well as IP surveys, geological and geotechnical studies and ecological surveys. The 2021 drill program focused primarily on extending the newly discovered Gate Zone by systematically testing the associated copper-in-soil anomaly of approximately 1km in length. During the year, the strike length of the Gate Zone was expanded nearly eight-fold. Mineralization has been intersected to date over 950m in length, to a depth of 850m and over a thickness of 350m. The Gate Zone offers further potential as it remains open in several directions.

A further 25,000 meters of drilling are scheduled for the current year. In addition, drilling started in the Dillard zone in October and is expected to continue. Further potential for discovery comes from other target areas, including the newly acquired Axe concessions adjacent to the south of the MPD project area. As a result, Kodiak Copper should provide investors with continuous news flow throughout the year. In addition, there could also be the possibility of another groundbreaking discovery. The market capitalization is EUR 44.50 million. The stock has already gone through a correction and has long-term potential due to its projects.

XPeng - Beating the competition

The sales figures for January from China are in. The electric car manufacturer XPeng was able to distance itself from its competitors, NIO and Li Auto. The Company, which has its headquarters in Guangzhou and branches in Mountain View, California, sold 12,922 electric SUVs.

Compared to the same period last year, growth was 115%. However, due to seasonal factors, sales declined by about 19% compared to the previous month, when 15,613 vehicles were delivered. XPeng's flagship P7 sedan was delivered 6,707 times in January, the P5 sedan 4,029 times and the G3 series SUV 2,186 times.

XPeng is currently conducting a technology upgrade at its Zhaoqing plant, taking advantage of the planned production stoppage during the Chinese New Year holiday from late January to early February.

The upgrade will enable accelerated delivery of the substantial 2021 order backlog and allow the Company to better meet rising demand in the new year, the Company said.

Inflation is on the rise and is expected to remain high. There is increased demand for copper due to the energy transition. Kodiak Copper should benefit from having two promising projects. TeamViewer's numbers were on target while XPeng continues to expand production capacity.