The shares of Weichai Power could not escape the negative trend in the fuel cell sector. They suffered from the lockdown in China, but now we can see a strong upward trend again.
On the stock market, the company is, in relation to those such as the US-based Cummins Engine, too lowly valuated (15 billion USD valuation versus about 30 billion USD). However, both are market leaders for diesel engines who are now increasingly entering the field of hydrogen and fuel cells. Weichai has a market share of 30.7 percent of the heavy-duty truck segment in China, a very important market for fuel cells in the future. Additionally, the corporation is involved with Ballard Power (51:49 joint FC stack production in China) and strongly active in the area of heavy commercial vehicles (number one in bulldozers, cranes). Bus manufacturers belong as much to the corporation as the forklift manufacturer Kion (10 billion EUR turnover with over 500 million EUR profit). As the ramp-up of the hydrogen economy in China is coming, Weichai should be regarded as a key investment.
Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. 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 medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.
Author: Sven Jösting, written June 11th, 2022