Aston Martin Lagonda: powering ahead with electric luxury
28th April 2022 |
Before we dive into today’s update, if you’re in London on Friday 29 April, I’m going to be presenting on the Main Stage at the IX Investor Show.
I’ll be giving my talk at lunchtime (around 1pm I believe) on the theme of, “Tips & Ticks Investing in the Crypto Markets from a Decade Long Veteran”.
I will also be on hand throughout the day (till about 3pm) to meet and speak with attendees.
But it’s not just me speaking at the event. I’m part of a line-up of 30 expert traders and investors sharing knowledge and expertise to help retail investors find an edge in the markets – it’s shaping up to be a great conference. You’ll find the full agenda on the website at ixinvestorshow.com.
As a speaker, I’ve also arranged with the organisers 100 free tickets for my subscribers (saving of £25 per ticket). All you need to do is use our special code “Southbank” or click this link.
Hope to see you there.
Luxurious. Slick. Timeless.
These are some words you could associate with Aston Martin Lagonda’s (LSE: AML) cars.
Another word you can now throw into the mix is “electric”.
Like many other automotive manufacturers, Aston Martin is a part of the electric vehicle (EV) transition.
In fact, it’s planning to electrify its entire range of GT sports cars and SUVS by 2030.
Crucially, its two most popular models, the DB11 and the Vantage, will be replaced with electrical versions.
Aston Martin is also seeking to use “green” aluminium alloy in its cars, which is produced using 100% renewable energy.
It’s even exploring ways to create a vegan-based interior for its cars, to minimise the environmental impact.
Commercial delivery of its first plug-in hybrid vehicle, called Valhalla, is due to commence in 2024.
The company’s first battery EV is due to launch in 2025.
In addition, by 2026, all Aston Martin will have an electrified power train option.
In our view, Aston Martin is setting a new benchmark for sustainability in the automotive sector.
Although Aston Martin is pivoting away from its roots as a provider of luxury internal combustion engine (ICE) vehicles, the transformation is vital to the company’s future growth prospects.
It has recognised the importance of keeping up with the times, as the UK moves away from ICEs and towards EVs.
For example, the UK government is seeking to ban the sale of new petrol and diesel vehicles by 2030.
What’s more, Aston Martin CEO Tobias Moers has reassured customers the luxury brand image of the company will “not be diluted” despite the new models.
In addition, Aston Martin’s current financial position is robust.
The company recorded revenues of £1 billion for the full-year 2021. This is nearly double the £611.8 million figure achieved in 2020.
Also, sales volumes almost doubled between the full-years 2020 and 2021, rising from 3,394 to 6,178 units.
Finally, Aston Martin’s losses are dramatically declining.
Specifically, operating losses have fallen from £322.9 million in 2020 to £76.5 million in 2021.
The company endured a tough lockdown period, with the closing of its car dealerships hampering demand.
For example, sales were down 32% in 2020 on the previous year.
However, Aston Martin is showing great powers of recovery, assisted by its transition to EVs.
Despite treacherous market conditions, its share price is around 10% higher since 8 March 2022. At the time of writing, it is 822GBp.
We believe now is an opportune time to take a position in Aston Martin, as the UK automotive industry heads towards an electric future.
We reiterate our BUY recommendation on the stock. You can find the original recommendation here.
Buy list update
EQTEC (LSE: EQT)
EQTEC is a provider of gasification technology, which converts waste into syngas. The syngas is used to power green energy appliances.
EQTEC’s technology is becoming invaluable to a world that is seeking to reduce carbon emissions as quickly as possible.
The company’s latest financial figures reaffirm our positive long-term view towards it.
For the year ended 31 December 2021, EQTEC recorded revenues of €9.2 million. This is a 410% increase on the €2.2 million figure recorded in the previous year.
In addition, the company reduced its losses from €5.8 million in 2020, to €4.7 million in 2021.
The company’s cash position remained unchanged across the two years at €6.4 million.
The company has several new projects under construction, which will help it to further scale up its gasification solution.
These projects include:
- The North Fork Community Power project in the United States, a 2MWe facility which will convert 17, 550 metric tonnes of biomass into green energy.
- Acquisition of a waste-to-energy plant in Tuscany, Italy, which is expected to generate annual revenues of €2,000,000.
- The acquisition of two gasification plants in Croatia (Belišće and Karlovač), with output of 1.2MWe.
- The development of Greece’s first gasification, waste-to-energy plant.
It doesn’t stop there.
EQTEC created a wholly owned subsidiary called EQTEC France SAS in March 2022, helping to expand its presence and gasification technology across continental Europe.
The company also has several early-stage projects in the pipeline across the UK, US and Ireland.
And… with green energy being a hot topic in economies around the world after the COP26 climate summit talks, now could be an opportune moment to take a position in the stock.
We reiterate our BUY recommendation on the stock. You can find the original recommendation here.
The Frontier Tech Investor “Top Three”
Sometimes, it’s hard to decide which stocks to invest in from our buy list.
Below is our Frontier Tech Investor “Top Three” section, showing three stocks in open BUY positions. If you’re trying to figure out what to invest in next, these are three that we think are a great place to start.
This doesn’t mean our other stocks are no good: it’s just a tool to help you spot the next Frontier Tech Investor stock that could be worthy of your consideration.
Team17 (LSE: TM17) – Team17 is a video-game publisher. It has a large collection of games that contains some of the most popular products of the gaming world. One of these is Worms, the enthralling last-man-standing survival game born out of the 1990s gaming boom. Team17 is keeping up with the times and offers its games across a number of contemporary technology platforms. It has even flirted with the idea of NFTs, an emerging trend that could revolutionise the gaming industry. At a time where sceptics think online gaming will come off the boil following the easing of lockdown restrictions, Team17 keeps gamers coming back for more. You can find the original recommendation here.
Aura Energy (LSE: AURA) – Aura Energy is an early-stage mining company focused on the exploration and production of uranium, a key ingredient in the generation of nuclear energy. The company is showing signs of a shift from uranium explorer to producer, after uncovering water deposits at its Tiris mining project in Mauritania. Water deposits are essential for a smooth mining process. Aura estimates that its Tiris project will produce 12.4 million lbs of uranium over the next 15 years. Aura should be a key player in the nuclear future. You can find the original recommendation here.
Yellow Cake (LSE: YCA) – Yellow Cake is a hoarder of uranium oxide, which is used to generate nuclear power. In this, it offers direct exposure to the spot price of uranium to investors, removing geopolitical and processing risks associated with mining. In fact, it currently has a bumper contract with the world’s largest uranium producer, Kazatomprom, which supplies it with $100 million worth of uranium every year (up until 2027). In total, Yellow Cake stores 8,527 tonnes of uranium oxide in storage facilities, meaning that the uranium is currently worth more than $1 billion. This is a lot more than the current market capitalisation. You can find the original recommendation here.
Sam Volkering
Editor, Frontier Tech Investor
Elliott Playle
Analyst, Frontier Tech Investor
PS As this coming Monday is a bank holiday, your next issue of Sam Volkering’s Crypto Network will be with you on Tuesday 3 May.
