17. June 2021 | 11:04 CET
Varta, Apple, BYD, EuroSports Global - The stock market stars of electric mobility
The number of companies focusing on the electric mobility sector has been rising sharply for the past 2 years. Different business models and the majority of the companies are suppliers to larger integrators. Then there are many followers and startups that still want to harvest a piece of the future pie. For many ideas, time is ticking - time to market is the keyword - because the race for ready and in-demand products started about 5 years ago. Those who are just starting out today could be too late to market once the lengthy and costly development and testing phases have been completed. Apple and Google are investing billions to be part of it. We deal with a few of these protagonists.
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ISIN: DE000A0TGJ55 , US0378331005 , CNE100000296 , SG2G55000001
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Varta - Is Apple now getting into the game?
More and more rumors are swirling around the Varta share. Is a mega-deal with a new battery already imminent? The Swabians have already been able to win a premium car manufacturer from southern Germany as their first customer, but there were no more precise details. However, the potential circle of premium manufacturers from southern Germany is concentrated on just 3 companies, and each address is a parade engineer pearl with extensive model variants. Here, Varta is in the highest position in terms of its battery competence.
There are other interested parties, in particular Apple of California, which is in fierce competition with Google as to who will launch the first autonomous vehicle on the market. Drive technology and energy supply also play a significant role here, as modern cars thrive on integrated software modules and high energy efficiency. Again, an exciting field for Varta and its competitors, such as BYD.
Varta's latest generation batteries, called V4 Drive, achieve excellent performance data. For example, charging is said to be possible in 7 minutes. Thus, Varta is probably currently at the forefront of technology here, which is also documented by the planned cooperation with the robot manufacturer SoftBank Robotics.
In retrospect, Varta was able to show only a small growth in 2020, but in the second half of 2021, the Swabians should really get going. The correction was stopped at the EUR 108 mark, and now the share price is picking up momentum again towards the EUR 140 mark. However, whether the drive is sufficient for a new high above EUR 180 is questionable, not only because of valuation ratios.
BYD - Good news from London again
BYD remains in the rhythm! The British bus manufacturer ADL and the Chinese technology group BYD have announced another major order for electric buses from the British metropolis of London. BYD has now founded its subsidiary on the island for this purpose: Build Your Dreams Co. Ltd, BYD UK. The operating Company RATP Dev London ordered numerous BYD-ADL electric buses, with the largest order to date comprising 195 single and double-decker electric buses.
The highly successful cooperation already dates back to 2016. According to the mayor's transport strategy target from 2018, the semi-public institution Transport For London (TFL) wants to operate all of its buses electrically or with hydrogen so that all transport in the London metropolis will be emission-free by 2037.
BYD stock has now put another 50% move on the floor in just one month. So again, it is a terrific stock for the dynamic investor, but it is analytically expensive like the entire peer group!
EuroSports Global Ltd. - Electric motorcycles from Singapore
EuroSports Global Ltd. is a new company in the electric mobility sector from Singapore. It concerns two-wheeled vehicles in the most modern edition. The holding EuroSports owns 75% of the newly founded subsidiary Scorpio Electric Ltd., which is still 25% in the hands of associated companies through various financing steps. In addition to the new sector, EuroSports Global has operated a functioning trade in luxury sports cars and other high-end items for years. The new segment of design runabouts fits very well into the program.
With sales of SGD 49 million, the Singapore-based Company posted a decline in sales and a slight loss in 2020 due to Covid. After the reopening of the sites, however, things are going well with the luxury products. The main product of the new subsidiary is high-performance electric motorcycles under development with a power of 10KW and a top speed of about 105 km/h. These new two-wheelers are, of course, interesting for short-distance traffic in the overpopulated metropolises of Asia. Lack of parking space, traffic density and smog provides compelling arguments for an electric drive, combined with tax incentives.
For the growing market, it is important to look at the competitive situation: Fonzarelli, Vespa, Super Soco, NUI and Etergo are manufacturers that have so far been able to offer a comparable product. However, their battery performance is sometimes too low, or the range is not yet at the promised 200km of the new SCORPIO X model. At around SGD 8,000, the price is also still within reason, because after all, the buyer is acquiring a fully SMART-enabled product with remote functions such as keyless go, geo-tracking, collision sensor and supercharging in just 4 hours. As a result, this means that the trendy means of transport is available at the front door, fully charged, after the 8-hour job.
The prototypes will be ready in the third quarter of 2021, with the official brand launch then taking place in the fall. EuroSports Global in Singapore has a current market capitalization of SGD 66 million, and the stock has also been traded in Germany since early June. As a motorcycle fan and e-mobility investor, you can now saddle up in passing because the set-up is convincing.