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May 10th, 2023 | 09:50 CEST

These cost-cutters make you rich: BMW, Star Navigation Systems Group, Lufthansa

  • computing
  • Technology
  • Electromobility
  • travel
Photo credits: pixabay.com

When the economic situation becomes more challenging, companies tighten their costs. That has always been the case. Solution providers that offer corporate customers measurable cost advantages are then in high demand. We look at three listed companies currently adjusting their cost structure and assess the prospects for their shares.

time to read: 4 minutes | Author: Nico Popp
ISIN: STAR NAVIGATION SYS GRP | CA8551571034 , LUFTHANSA AG VNA O.N. | DE0008232125

Table of contents:


    Uwe Ahrens, Director, Altech Advanced Materials AG
    "[...] We know exactly what we are doing and are implementing what we consider to be a proven technology in an industrially applicable and scalable way. [...]" Uwe Ahrens, Director, Altech Advanced Materials AG

    Full interview

     

    BMW aims to become more economical with the "New Class"

    According to the Tuesday edition of Handelsblatt, automaker BMW has not quite entered the era of electric vehicles. The new vehicle platform called the "New Class" is expected to change that. A prototype is to be presented during the IAA Mobility event in autumn. The first production model could be an e-car that is roughly equivalent to BMW's current 3 Series. With this move, the Bavarians want to take on Tesla's Model 3 and Mercedes-Benz's electric CLA range. The new platform is also expected to facilitate the use of new battery technology that is both more powerful and cost-effective. BMW also intends to score points with the "New Class" in terms of consumption. While the i4 requires around 17 kWh per 100 km, new models should manage with less than 13 kWh. By comparison, Tesla's Model 3 is currently the front-runner in terms of efficiency, together with the Hyundai Kona, with just over 14 kWh.

    The step towards greater efficiency is crucial in order to maintain or expand market share in competition with its rivals. However, BMW must not stand still: Mercedes-Benz has also set fuel efficiency targets and wants to achieve consumption values of less than 10 kWh per 100 km within a few years. Currently, the range is around double that. Ultimately, ranges of up to 850 km should be possible. BMW's "New Class" initiative shows that the Bavarians have accepted the competition. Nevertheless, BMW still has a long way to go. Whether the noble brand can live up to its image as a technology leader is questionable. After a rally lasting many years, the share is at an exciting level just below the previous all-time high from 2015.

    Lufthansa: Returning to profit thanks to cost reductions?

    The Lufthansa share is also on the way up, although the Corona rally ended a few weeks ago. Lufthansa recently expected increased demand in the summer and announced that it would be able to meet this demand profitably. It is worth mentioning that profitability has been challenging for Lufthansa, especially in recent years. Although the loss fell in the 1st quarter, Lufthansa customers still have a poor opinion of the Company. There is often talk of poor service, and the road to or back from becoming a premium airline is likely to be marked by turbulence. In order to save costs, Lufthansa seems to be willing to do almost anything at the moment. The Canadian company Star Navigation Group has developed a solution that can optimize maintenance and service around aircraft fleets - the beleaguered aviation sector may have been waiting for the solution - provided it lives up to its promise.

    Star Navigation Systems Group: Fewer flight cancellations, more safety

    Star Navigation Systems Group has developed a tool that works in aircraft of all current manufacturers and that collects real-time data during the flight and forwards it to the airline. This allows, for example, minor anomalies to be detected and extraordinary maintenance to be planned while an aircraft is still in the air. It also creates the potential for organizing replacement aircraft or avoiding unscheduled maintenance by completing minor repairs as part of routine checks. The Star Navigation Systems Group solution is available on a subscription basis and has so far only been used by a few smaller airlines.

    If the Company successfully convinces large fleets to use its tool, other airlines could follow suit. Given the cost pressure in the airline industry and also the growing dissatisfaction of regular customers, who have suffered from flight cancellations and other inconveniences at Lufthansa, for example, it could be worthwhile for the Kranich airline to better manage unforeseen events in future thanks to the Star Navigation solution. The share is a flawless penny stock and must, therefore, also be considered speculative. But if the Company succeeds in making a breakthrough with a major airline, the share could face a revaluation. The management of Star Navigation Systems Group recently subjected about a quarter of the outstanding shares to a holding period - which speaks for the fact that the Company believes in its breakthrough. Those wanting to get to know the Company and its solution better can listen live to CEO Anoop Brar and ask questions at the 7th International Investment Forum (IIF) on Wednesday, May 10, at 6.30 pm (https://us06web.zoom.us/webinar/register/WN_GnNX8t9yR6GK-UsuC8M-_w#/registration).


    Getting costs under control is essential for companies, especially now that the first signs of an economic slowdown are appearing in the US. It is especially true for industries in transition, such as the auto sector. But airlines are also under pressure: paraffin could soon become more expensive. In addition, customers are annoyed after Corona and staff shortages. Since Star Navigation can prevent flight cancellations with its solution and, at the same time, increase safety, the offer could strike a chord in the aviation industry. It is worth getting to know the Company during its live video presentation at the IIF today.


    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.

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    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author



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