03. August 2021 | 11:08 CET
Volkswagen, Almonty Industries, BYD - World leadership with e-mobility!
Driving electric vehicles is the future! Electromobility is becoming the key to climate-friendly mobility and innovation worldwide. That is because the operation of e-vehicles produces significantly less CO2 than other means of transport, especially when combined with regeneratively generated electricity. With large gensets on board, electric vehicles will be able to compensate for fluctuations in wind and solar power in the future, thus supporting the expansion and market integration of these unsteady energy sources. The German government is promoting the development and ramp-up of electromobility with a comprehensive package of measures that is continuously being expanded and adapted. How can investors best benefit from this trend?
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ISIN: VOLKSWAGEN AG VZO O.N. | DE0007664039 , ALMONTY INDUSTRIES INC. | CA0203981034 , BYD CO. LTD H YC 1 | CNE100000296
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
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.
Volkswagen - The ID.4 is also set to take off in China
What a campaign during the last European soccer championship! The perimeter advertising could hardly have been more forceful because what remains as a memory after the poor performance of the German soccer team is: the ID.4 from VW. Volkswagen probably spent a three-digit euro amount to promote its new electric car, and with good reason: The Chinese are soccer fans - around 300 million Asians watched the games on TV.
Volkswagen wants to get off the ground in China. After the slow sales start of the new ID.4 electric compact SUV in China, Volkswagen nevertheless expects a rapid ramp-up of its share of electric vehicles in the world's largest single market. Sales targets for China have yet to be revised, said Alexander Seitz, CFO of Volkswagen's core brand. With a range of 360 to 520 kilometers, VW is setting new standards in price as well. The new mid-range Stromer is available from EUR 37,415.
Due to fierce competition in China, a new e-model needs at least 6 to 8 months to establish itself and achieve regular sales figures. Currently, the bottleneck remains the global chip market, but VW does not want to speak of a flop. A significant increase in deliveries from month to month will ultimately lead to the targeted goals. This year, Volkswagen also plans to deliver 80,000 to 100,000 electric cars in China to expand its ID vehicle family - the overall market currently stands at around 2.2 million all-electric vehicles.
Although the market share in China shrank slightly in the first half of the year, the Group nevertheless achieved a record operating profit thanks to the premium brands Audi and Porsche and the financial division. The 2021 return target is therefore being raised by half a percentage point to 6.0 to 7.5%. The VW preferred share has not yet fully recovered from its 20% correction since May. In terms of the chart, one should keep an eye on the EUR 215 mark. With a P/E ratio of 6 to 7, the share is one of the cheapest automotive stocks worldwide.
Almonty Industries - Notice in Australia creates attention
Allmonty Industries Inc. is now consistently taking the next steps. The listing prospectus and all applications for the IPO in Australia have been submitted, and 15.25 million shares have been placed with new investors at AUD 1.00. Almonty should now soon be on the Australian ticker. In the land of raw materials, the additional listing enriches the share price and increases the global liquidity in the share, and new investors can be tapped.
Almonty Industries, based in Toronto, Canada, is primarily engaged in mining, processing and shipping tungsten concentrate from its Los Santos mine in western Spain and its Panasqueira mine in Portugal. The investment plan also includes developing the Sangdong tungsten mine owned in Gangwon Province, South Korea and the Valtreixal tin/tungsten project in northwest Spain.
The Sangdong mine is a world-class property, as it is historically one of the largest tungsten mines in the world. Moreover, it is one of the few long-lived, high-grade tungsten deposits outside China. It was integrated in September 2015 by acquiring a 100% interest in Woulfe Mining Corp. from Almonty.
The placement in Australia now brings the number of shares to 192 million. The use of USD 28 million in equity and USD 75 million in KfW loans, along with a supply agreement to Austria's Plansee Group, will allow the Korean property to be financed. For investors in strategic metals, this is music to the ears. Allmonty shares should therefore be in strong demand on all stock exchanges in the coming months.
BYD - The consolidation is complete
The correction in China seems to be over; now, the BYD share is accelerating again. We had taken a closer look at the stock several times recently because a strong downward trend had set in since reaching the high of EUR 29.50 in January. The share price finally found a foothold at around EUR 15.5 at the end of April and is now moving sharply upwards again.
Operationally, everything seems to be going very smoothly, although Corona is also leaving its mark. The Chinese automaker backed by stock market legend Warren Buffett is coming close to its pre-pandemic 2019 figures for all-electric passenger cars this year. In the first half of 2021, it sold a total of 93,440 electric vehicles, an outright doubling from 2020 and nearly matching the high of 2019 figure of 95,779.
Analysts at Goldman Sachs then raised their price target, boosting the stock again at the start of August. Chart-wise, the stock formed a bullish flag formation since May, and the current move above EUR 27.5 now leads to a significant breakout. If this is confirmed, the high of EUR 29.5 is again in the picture. Hold with a stop loss of EUR 23.5!
The stocks presented here operate in the environment of future mobility. Investors can choose to invest directly in a manufacturer such as VW or BYD. Or they can go back a few links in the production chain and invest in a strategic metals mining company like Almonty Industries.