Profit surge, commodity opportunities and record share prices at Elmos, Henkel and Strategic Resources

Elmos shares lose 6% despite profit surge – why the outlook disappointed

Shares in Elmos Semiconductor SE fell 6.30% to EUR 113.00 on Tuesday, November 10, before recovering to EUR 116 on Wednesday. The semiconductor stock thus surrendered almost all of Monday’s price gain. The Leverkusen-based group had previously reported significantly higher revenue and profits, but maintained its existing full-year targets.

Demand for the company’s chips remained high in the third quarter. Revenue rose 18.4% year on year to EUR 166.7 million. Operating EBIT grew by 29.2% to EUR 41.0 million, with the corresponding margin improving from 22.5% to 24.6%. Unadjusted EBIT was even higher at EUR 49.5 million. This included positive valuation effects. The operating margin therefore showed more clearly how the ongoing business was performing.

Free cash flow adjusted for operating purposes remained almost stable at EUR 32.3 million. Measured against higher revenue, this corresponded to a margin of 19.4%. Over the first nine months, however, cash inflow rose from EUR 54.6 to 87.8 million. At the same time, investment in property, plant and equipment and intangible assets after deducting capitalised development costs declined from EUR 5.9 to 5.2 million. Over the first nine months, revenue rose by 16.4% to EUR 481.2 million and operating EBIT by 33.6% to EUR 116.8 million. Growth had therefore also been reflected in earnings.

For the full year, Elmos continued to expect revenue growth of 10 to 14% and an operating EBIT margin of 23 to 26%. Following the strong first nine months, Metzler analyst Veysel Taze had expected at least higher lower limits for the guidance ranges. Elmos had previously exceeded expectations repeatedly. The reaffirmed outlook explained part of the disappointment, although the analyst considered the quarter’s operating performance solid. For the remainder of the year, it remained unclear where within the ranges Elmos would actually end up.

From a technical perspective, the picture remained clearly bearish. After a sideways phase since May, the shares came under selling pressure from early July. The recovery attempt in September took them above previous highs, the 200-day moving average and the EUR 150 level. In early October, however, the recovery failed. Since then, the shares have lost more than 30%. Nevertheless, they were still up around 13% since the start of the year and around 24% over 52 weeks. At EUR 116.00, Elmos was trading well below all four moving averages. It was just under 10% short of the 20-day moving average at EUR 124 and around 35% short of the 200-day moving average at EUR 152. To stabilise, the shares would first need to return sustainably above EUR 120. On the downside, the November low at around EUR 108 remains significant. Below that lies the support zone between EUR 100 and 105. If this also fails to hold, EUR 90 to 95 comes into focus. The shares had repeatedly formed highs there in April 2021, June 2024 and July 2025. This former resistance zone could now provide support.

Strategic Resources: Two projects and growth plans

Strategic Resources Inc. is developing three raw materials – vanadium, titanium and high-purity iron – that are relevant to the decarbonisation of the steel industry and more resilient supply chains. The focus is on the BlackRock project in Québec and the formerly producing Mustavaara mine in Finland. The most recent market capitalisation was around CAD 8.85 million, as the last closing price was CAD 0.15. This makes the company one of the smaller raw materials developers.

At the heart of the company’s Canadian strategy is a pelletising plant at the port of Port Saguenay. It has a planned annual capacity of 4 million tonnes and is set to produce high-purity iron ore pellets. Regulatory approval is already in place for the mine and processing plant in Chibougamau. To expand pellet production from 1.5 to 4 million tonnes, the company has also answered all follow-up questions from Québec’s environment ministry. However, the final decision on amending the existing approval notice still rests with the authority. The expected approval notice is needed to develop a robust financing structure for the required debt and equity capital.

Economically, the location is very attractive thanks to access to the St. Lawrence River waterway and comparatively inexpensive hydropower. Earlier company assumptions put operating costs at around USD 16 per tonne and assumed selling prices of USD 50 to 55 per tonne for quality pellets. These assumptions are not static, and construction costs, financing terms, energy prices, ore quality and the market for direct reduction pellets are constantly changing, but this demonstrates the high margin even if underlying parameters change. 

In Finland, Mustavaara is gaining additional strategic relevance through the FutSteel research programme, which runs through 2029. The University of Oulu is incorporating vanadium-rich magnetite concentrate from the project into tests for hydrogen-based ironmaking and electric steel production. The programme has a budget of EUR 17 million and is working with Sweden’s largest steel group, SSAB, among others. The research programme aims to demonstrate the material’s industrial applicability. From a technical perspective, the shares must now defend the support area at CAD 0.15. If they manage to stabilise there after the recent price pullbacks, this offers an attractive risk-reward ratio for initial positions.

Henkel shares at a new high for the year – will the EUR 88.5 level now be broken?

Henkel AG & Co. KGaA shares have continued their rally since early October unabated. On Xetra, it rose 4.52% since the start of the week to a latest price of EUR 86.96. At EUR 87.48, it also reached a new annual and 52-week high during the day. Based on the underlying chart data, the share was up around 25% since the start of the year and approximately 20% over 52 weeks.

Henkel published its full third-quarter statement on Tuesday. Group revenue rose 11.0% year on year to EUR 5.71 billion. Organic growth was 6.5%. The Adhesive Technologies adhesives business grew organically by 7.9%, while the Consumer Brands consumer goods division grew by 4.8%. Both divisions achieved higher prices and sold more. Group-wide sales volumes thus rose for the fifth consecutive quarter.

Henkel had already published the key figures and updated full-year outlook on October 29. The quarterly statement showed that all regions contributed to organic growth. For 2026, Henkel expected organic revenue growth of 3 to 4%, compared with 1.5 to 3.5% previously. The company expected an adjusted return on sales of around 15%, having previously indicated a range of 14.5 to 16.0%. Higher raw material costs weighed particularly on the adhesives business.

With the price jump, the share surpassed the highs of February and August 2026. Having reached EUR 87, the share is now entering the zone of the March 2025 high, which stood at EUR 88.50. At the same time, the downtrend in place since April 2021 was broken. This confirms the completion of the bottoming phase and the overarching trend reversal under way since April 2026. The chart picture is therefore clearly bullish and is above all four moving averages of 20, 50, 100 and 200 days. In the event of a pullback, the area between EUR 72 and EUR 80 would be the first significant support zone.

Conclusion

Elmos Semiconductor records significant revenue and profit growth, but the unchanged full-year outlook has disappointed investors and put pressure on the share. Strategic Resources is developing raw materials projects in Canada and Finland, the implementation of which, at least in Canada, currently depends on environmental authority approval for the pelletising plant. Henkel reached a new annual high following strong quarterly figures; from a technical chart perspective, the EUR 88.50 mark is coming within reach as a fresh four-year high.

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