Hydrogenics – perfect foundations for 2020 ff

Share price development of the six discussed companies.
Share price development of the six discussed companies, © www.wallstreet-online.de

The momentum for the fuel cell is constantly improving with increasing dynamics. Recent co-operations such as those between Bosch and PowerCell, but also positive statements on fuel cells from automobile manufacturers such as Audi are attracting attention. Will China be the driver again, as it was when the batteries were introduced and before that in the field of renewable energies? There, new funding guidelines are about to be introduced, which are intended to favour and strongly promote the fuel cell and the hydrogen infrastructure, while the subsidies for purely battery-operated vehicles will, depending on the radius, be abolished in full or to a large extent.

The German automotive industry will have to rethink and massively supplement the one-sided approach of battery preference that it has just embarked on with fuel cells. Instead of being a front-runner, Germany will only become a follower. China is setting the pace – and is now focusing on developments in Japan as the future “Hydrogen Society”.

Forget the company’s operating figures this year. An important factor is the sharp rise in the order backlog, which has already reached US$ 150 million. Good news everywhere, which will determine the stock market price of the future: Alstom has won orders for a further 27 trains, supplied by Hydrogenics for the FC stacks. In four countries there is already concrete interest in FC trains, and eight other countries are on the verge of investing here as well.

The world’s largest electrolyser with a capacity of 20 MW is built for Air Liquide in Canada. In New Zealand, the company received an order for a 1.5 MW project from Halcyon Power. It is interesting to note that they are working with Daimler Freightliner and Siemens on FC stacks in California. We are talking about trucks here. The share price has performed very well, but the potential should always improve.

Risk warning

Every investor must always be aware of his own risk assessment when investing in shares and also consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid caps, i.e. they are not standard stocks and their volatility is also much higher. This report is not a buy recommendation – without obligation. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on a medium- and long-term valuation and not on a short-term profit. The author may be in possession of the shares presented here.

Author: Sven Jösting

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