October 23rd, 2023 | 06:50 CEST
Volkswagen, Altech Advanced Materials, Dürr - Using the setback as an opportunity
Table of contents:
"[...] 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
Dürr - Analysts see buying opportunity
Shareholders of machinery and plant engineering company Dürr experienced a black Friday. Following a forecast reduction for fiscal 2024, the shares of the MDAX-listed company temporarily lost over 20% at times but ultimately closed with a loss of around 17% at EUR 19.83. The slight recovery in the course of trading was due to the fact that several analyst firms continue to see the Company, which is based in Stuttgart and headquartered in Bietigheim-Bissingen, as a buy candidate at the current level despite lowering their price targets.
Thus, Hauck Aufhäuser Investment Banking downgraded its price target from EUR 37 to EUR 30 after the publication of the profit warning, but the vote was reiterated as "Buy". Analyst Christian Globa had reduced his estimates due to the weak fixed cost coverage at the woodworking machinery subsidiary Homag. However, Dürr should continue to benefit from structural growth drivers. In contrast, the dip at Homag is only temporary. Baader Bank even maintains its original price target of EUR 38. Despite the gloomy outlook, Warburg Research reiterated its price target of EUR 37.50 and its "Buy" rating.
The trigger for the share price debacle was that Dürr dropped its target of an EBIT margin before special items of 8% for the coming fiscal year due to the weak development in the Wood Processing division. The new forecasts now assume an EBIT margin of between 4.5% and 6%. Sales growth is expected to be between 5% and 10%.
Altech Advanced Materials - Making significant progress towards manufacturing
Altech's CEO Uwe Ahrens was very optimistic on the occasion of the 8th IIF - International Investment Forum. The reasons for the positive outlook lie primarily in the rapid approval procedure by the local authorities for the construction of a manufacturing plant. The Heidelberg-based company expects the complete "go" as early as the first quarter of the coming calendar year. A pilot plant for the production of the CERENERGY® solid-state battery is currently being built at the Schwarze Pumpe Chemical Park in Saxony. Once the authorities have given their full approval, the next step would be the construction of a battery plant with an initial annual output of 100 MW.
By the end of the decade, the vision is to ramp up capacity to 4 gigawatts. CERENERGY® technology has the potential to revolutionize the market for stationary grid storage for large-scale plants such as wind and solar farms. In cooperation with the Fraunhofer Institute for Ceramic Technologies and Systems, Altech Advanced Materials is developing a battery that has enormous advantages in comparison to traditional products.
CERENERGY® batteries are fire- and explosion-proof, have a lifetime of more than 15 years and work in extremely cold and hot climates. The battery technology uses common salt and small amounts of nickel. Neither lithium, cobalt, graphite, nor copper are used. According to Fraunhofer, the manufacturing costs of CERENERGY® batteries are also expected to be about 40% lower than comparable lithium-ion batteries.
It is not without reason that the Altech Advanced Materials share has been one of the high-flyers on the German stock market this year, with a performance of around 120%. After peaks of over EUR 17, the stock is consolidating in the EUR 10 range.
Volkswagen AG - Forecast adjustment at the end of the week
After the stock market players in Germany had already headed into the well-deserved weekend, the Wolfsburg car giant came around the corner with a profit warning. Following the business performance of the first nine months, VW's management no longer expects to be able to offset the effects of raw material hedging transactions in the last three months of the year. Volkswagen justified this move by stating that "the further development of the raw material markets is unpredictable."
Adjusted operating profit is expected to settle at the previous year's level of around EUR 22.5 billion. In the third quarter, operating profit was around EUR 4.9 billion. Group sales grew by 12% to around EUR 78.8 billion, with an operating return on sales of 6.2%. At EUR 2.5 billion, cash inflow was around EUR 800 million lower than a year earlier but much higher than in the second quarter.
The forecast reduction naturally also affects the figures of the major shareholder, Porsche SE. Although the estimate of net profit remains in a range between EUR 4.5 billion and EUR 6.5 billion, the target is more likely to be the lower half of the range. Volkswagen AG plans to publish its final interim report on October 26.
Volkswagen AG announced an adjustment to its forecasts after the close of the stock market on Friday. Mechanical engineering company Dürr also cut its estimates for 2024. In contrast, Altech Advanced Materials is more than on target regarding the construction of its manufacturing facility.
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.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.