April 13th, 2023 | 09:28 CEST
Varta, Altech Advanced Materials, BYD - Which Greentech stocks are poised for a boom?
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"[...] Silumina Anodes® is a ceramic-coated graphite/silicon anode composite material that we plan to produce in Schwarze Pumpe, Saxony. Here, we aim to supply manufacturers of batteries for e-cars with an application-ready drop-in technology that is low-cost, high-performance and safe. [...]" Uwe Ahrens, Direktor, Altech Advanced Materials AG
Varta - CFO is swapped again
These continue to be stormy times for Varta shareholders. Last year there was a hail of profit warnings, and even now, there is no calm. The announcement of the annual figures has been postponed. The new CFO, Thomas Obendrauf, left before he could take up his post in May for personal reasons. Now Marc Hundsdorf is to take over from Armin Hessenberger. Hundsdorf is regarded as a reorganizer and can restructure companies.
Since 21 March, fresh capital has been available for this purpose. A capital increase, which was fully subscribed by VGG Beteiligungen SE (VGG), brought in around EUR 51 million. VGG is backed by Varta's major shareholder and supervisory board chairman Dr Michael Tojner. Only 3 days later, an agreement was reached with the financing banks and the majority shareholder on a comprehensive restructuring concept, whereby the financing will be extended until 31 December 2026, and the credit terms will be adjusted. The restructuring programme provides comprehensive cost-cutting measures and measures to increase efficiency.
Berenberg has upgraded the stock to Hold with a price target of EUR 29. There will certainly be further assessments when the figures are on the table on 26 April. The news about the agreement with the banks has given the share some tailwind so that the value could move away from the support zone at EUR 22. Currently, one share costs EUR 24.65. There is currently no reason to invest here.
Altech Advanced Materials - CERENERGY 1.0 MWh GridPack presented
Altech Advanced Materials specializes in the production of advanced and high-performance anode materials for lithium-ion batteries used in electric mobility. These materials are based on high-purity aluminium oxide (HPA) and are marketed under the brand name Silumina AnodesTM. In addition, the Company focuses on solid-state batteries for stationary battery applications. The CERENERGY product line is thus a testament to the Company's commitment to providing high-quality and reliable energy solutions.
The battery storage systems market is expected to grow rapidly in the coming years. From USD 4.4 billion in 2022 to USD 15 billion in 2027, the joint venture with the Fraunhofer Institute has quickly borne fruit. The CERENERGY 1.0 MWh GridPack is a scalable storage system for large-scale industrial use. The system consists of 18 60 kWh battery packs that achieve a capacity of up to 1.08 MWh. If more is needed, modular expansion is easy, and each system is weatherproof and explosion-proof. These solid-state batteries can, therefore, also be used in residential areas, public buildings and critical infrastructure.
Money for the next steps is also available. On 7 March, the Company announced that its zero-coupon convertible bond had been fully subscribed. That means around EUR 3.5 million is flowing into the coffers. Anyone who wants more detailed information about the Company and the status of its projects should make a note of 10 May. On this day, CEO Uwe Ahrens will present the Company at the 7th International Investment Forum (IIF) and answer questions from shareholders. Since the beginning of the year, the share has risen from EUR 3.74 to EUR 11.80. Since then, the stock has been consolidating and is currently trading at EUR 7.80.
BYD - With a new sodium-ion battery
BYD's Blade batteries are considered the leader in electric cars. Even Tesla has used batteries from BYD. After its competitor CATL developed a sodium-ion battery with an energy density of 200 Wh/kg, BYD announced the introduction of electric car models with sodium-ion batteries. Mass production of sodium-ion cells is expected to start before the end of the first half of 2023. This would also make electric vehicles much cheaper.
BYD has released its production and sales report for March. A total of 207,080 pure electric cars and plug-in hybrids were sold, up 7% from February. In the first quarter, BYD sold a total of 548,917 vehicles, an 87% year-on-year increase in sales. Sales of all-electric vehicles accounted for 48% of total sales. The decline compared to the previous quarter is due to the price war and lower demand due to the New Year holiday.
As the Chinese carmaker looks to expand, it is not surprising that the group plans to build a plant in Spain, according to the Spanish newspaper Expansión. Berkshire Hathaway recently sold shares worth around USD 69 million again. The investment company still owns about 10.9% of all BYD shares. The share reacted promptly and fell to currently EUR 25.78. The newly established upward trend in the share remains intact, but closing prices above EUR 27.44 are needed to break the downward trend.
A lot is going on in the battery sector. Developments are moving fast, and time will tell which technologies will prevail in the long run. Varta first has to get its costs under control and return to the track of success with rising margins. Altech Advanced Materials has several hot irons in the fire. On the one hand, the coated anode material, and on the other hand, the industrial electricity storage, CERENERGY. BYD is currently the number one producer of electric vehicles. With the new sodium-ion batteries, they could expand this position.
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