TUI share takes off – When will Almonty Industries and Bayer follow suit?

TUI – Strong growth and optimistic outlook

The TUI Group, a leading player in the global tourism industry, has presented impressive figures at the close of the 2024 financial year. With a 12% increase in revenue to EUR 23.2 billion and a 33% increase in underlying EBIT to EUR 1.3 billion, the Company can look back on an extremely successful year. In particular, the Hotels & Resorts and Cruises sectors proved to be growth drivers, supported by strong demand and increased price margins. A total of 20.3 million travellers were recorded – an increase of 7% over the previous year. CEO Sebastian Ebel is convinced that TUI is on a solid course for the coming years.

TUI is pursuing a clearly defined growth strategy that extends beyond the traditional package holiday business. The Company is increasingly focusing on personalised travel offers to appeal to broader target groups. Geographically, the focus is on a stronger presence in Latin America and Asia to better cushion economic fluctuations in Europe. The tourism giant is also more stable financially: Thanks to a positive cash flow, net debt was reduced to EUR 1.6 billion. According to CFO Mathias Kiep, the focus remains on debt reduction, while a 5-10% increase in turnover and an up to 10% increase in EBIT are expected for the 2025 financial year.

After the publication of the positive annual results, the TUI share initially showed volatility but quickly regained ground. Analysts are optimistic about the Company's prospects but are warning of possible risks, such as the high level of debt and economic uncertainties. Nevertheless, stable demand for travel and progress in the core segments open up potential for sustainable growth. The planned return to dividend payments in 2025 is likely to attract particular attention – a signal that should further increase the attractiveness of the share. The share price has risen by over 90% since mid-October and is currently trading at EUR 8.518.

Almonty Industries – Opening of the Sangdong mine leads to revaluation

Almonty Industries is not only pursuing a niche strategy but also benefiting from its forward-thinking positioning in the global tungsten market. As one of the world's most critical but tightly controlled metals, tungsten is essential for high-tech applications, from semiconductors to defense. With a global market that sources over 80% of its supply from China, the Company is gaining importance – especially through the development of the Sangdong mine in South Korea, which brings strategic security and alternative solutions in an increasingly uncertain global supply chain.

The Sangdong mine, one of the world's largest high-grade tungsten deposits, is the focus of Almonty's investment. Equipped with the latest technology, including a semi-autogenous mill and a ball mill from Metso, the mine will ensure precise and efficient processing. The rapid scalability of production capacity is particularly noteworthy, as it can respond to increasing demand, especially from the semiconductor and defense sectors. Supported by government subsidies and solid financing, the mine is positioning itself as the cornerstone of the tungsten industry outside of China.

China's export restrictions on tungsten have forced Western industries to look for alternative and reliable sources of supply. Almonty benefits directly from this development, as the Company can score points not only in South Korea but also in Europe with mining projects such as Panasqueira in Portugal. The clear focus on strategic regions and sustainable ESG standards underscores Almonty's growth prospects. In addition to tungsten, the deposit in South Korea also contains molybdenum, which offers further potential. The stock has already seen gains recently, but with the commissioning of the largest tungsten mine outside of China, a reevaluation is expected. The stock currently trades at CAD 0.91.

Bayer – When will the rebound start?

Bayer AG's stock is increasingly attracting the attention of investors looking for attractive yield opportunities. After a challenging 2024, marked by a new 52-week low, the market is now signalling potential for a turnaround. Experts rate the stock as significantly undervalued and assume that a market recovery is possible if strategic measures are successfully implemented. Significant upside potential is underpinned by an ambitious price target that noticeably exceeds the current level.

The pharmaceutical division, in particular, is proving to be a central pillar of growth in the Bayer Group. Successful drugs such as Eylea and Nubeqa have seen a significant increase in sales, strengthening the Company's position in this segment. With innovative products in the pipeline, Bayer will likely expand its market position further in the medium term. Bayer expects its heart drug Acoramidis to be approved for the treatment of transthyretin amyloidosis with cardiomyopathy in the EU market in early 2025, following a positive CHMP recommendation.

In financial terms, there are initial signs of stabilization. Despite a net loss in the third quarter of 2024 and ongoing challenges in the Crop Sciences division, Bayer is working on significantly increasing efficiency and reducing its debt burden. A comprehensive savings program is designed to improve the Company's financial position. However, the debts and ongoing legal disputes must first be resolved entirely before the share can really take off. At the moment, one share costs EUR 19.726.

TUI shares have impressed with strong business figures and a share price increase of over 90% since October, driven by growth in the core segments and a solid financial strategy. Almonty Industries is on the verge of a revaluation thanks to the Sangdong mine, as demand for tungsten from high-tech and defense industries increases. Bayer, on the other hand, continues to struggle with challenges – such as debt and litigation – but offers potential for a turnaround thanks to a strong pharmaceuticals business and innovative pipeline.