Close menu




August 4th, 2022 | 14:31 CEST

BYD chases Tesla, First Hydrogen is undervalued, and ITM Power with a buy signal

  • Hydrogen
  • Electromobility
Photo credits: pixabay.com

Hardly any other industry has such excellent prospects for the future as renewable energies. Whether electric mobility or hydrogen - all technologies are urgently needed and promoted. Among others, e-car manufacturer BYD is benefiting from this. In China, the Company is shining with significantly increasing sales figures and is on its way to knocking Tesla off its throne as the number 1 in the industry. It could happen faster than expected, as the Company plans to open its first showrooms in Germany and Sweden as early as October. ITM Power is overshadowed by Nel and Plug Power in the hydrogen sector. Analysts see a share price potential of over 100%. First Hydrogen also has potential. Analysts are currently observing the hydrogen newcomer's rise to the top tier and say there is an undervaluation compared to peer group company McPhy Energy.

time to read: 4 minutes | Author: Fabian Lorenz
ISIN: BYD CO. LTD H YC 1 | CNE100000296 , TESLA INC. DL -_001 | US88160R1014 , First Hydrogen Corp. | CA32057N1042 , ITM POWER PLC LS-_05 | GB00B0130H42

Table of contents:


    First Hydrogen on the way to the top and undervalued?

    The experts at researchanalyst.com have taken a closer look at First Hydrogen and come to a positive conclusion. The hydrogen newcomer is on its way to the top of its sector. The Canadian company with offices in Vancouver and London specializes in zero-emission vehicles and the production and distribution of green hydrogen. Through its unique "best-of strategy", the experienced management has been able to set clear scent marks in the recent past, according to the experts. A milestone could now be reached with the admission to a leading consortium in the United Kingdom, which, however, has not yet received much attention from the broad market.

    In the next few days, the two demonstration vehicles from First Hydrogen will be tested in the UK and then ready for road use in the 4th quarter of 2022. At the same time, according to the Company, there is already keen interest from ten fleet operators to participate in the test of the two demonstration vehicles. Interested parties include telecommunications companies, express services, national utilities, a UK national supermarket chain and an ambulance fleet. That brings First Hydrogen closer to its vision of becoming the leading developer and manufacturer of zero-emission, long-range hydrogen-powered utility vehicles in the UK, EU and North America. CEO Balraj Mann estimates that between 10,000 and 20,000 units of the First Hydrogen Utility Van could be delivered per year from 2026. If we only calculate the lower limit of just 10,000 vehicles and a unit price of around EUR 50,000, sales would be EUR 500 million. The current stock market value is a modest EUR 110 million. Peer group company McPhy Energy is already valued at EUR 424 million. Although McPhy Energy is already somewhat further along in its corporate development, the four-fold valuation is nevertheless high.

    BYD in Germany from October

    The expansion of BYD to Europe was known. But the fact that it is going so quickly after Norway is surprising. The first showrooms will be opened in Sweden and Germany as early as October of this year. With Hedin Mobility, the Company has brought a European partner on board. Hedin Mobility is largely unknown in this country, but the Swedes are one of the largest car dealers in Europe. As such, Hedin will handle local vehicle sales and services. "Partnerships, such as the agreement with Hedin Mobility Group, are the foundation for providing comprehensive services and local support to BYD customers as the brand continues to expand its new energy passenger car business in Europe," the Chinese automaker said in a statement. It is not yet known which models will be offered in this country. However, the first vehicles are expected to be delivered to customers in the fourth quarter. With this step, some analysts' expectations that BYD could replace Tesla as the world's leading e-car maker as early as next year are likely to gain momentum. BYD is also stepping on the gas in its home market of China. For example, Denza, a joint venture between BYD and Mercedes, has started selling a new model. The Denza MPV D9 will be offered in a hybrid and electric version, costing between USD 50,000 and USD 100,000. There are already 30,000 pre-orders, it said.

    Investment bank Peel Hunt lifts ITM Power out of the shadow of Nel and Plug Power

    Hydrogen shares are currently in strong demand again. The reason: In the USA, Congress has finally passed the approximately USD 370 billion package for energy security and climate change. In addition to wind and solar power, this will also provide massive support for green hydrogen. Therefore, the industry giants such as Nel and Plug Power could make significant gains in the coming days. But also, British ITM Power should get a piece of the pie. The shares of the electrolysis specialist are currently trading at GBp 208, not far from the low for the year of GBp 171. According to investment bank Peel Hunt, there is plenty of room for upside. The analysts recommend ITM Power shares as a buy with a target price of GBp 500. They say the Company has the opportunity to position itself as a leading green hydrogen electrolyzer company. The customer list is already respectable with clients such as Linde, Shell and Yara. Operationally, the Company has not yet been able to convince in the current year. Revenue in fiscal 2022 of GBP 5.5 million was well below market expectations of around GBP 16 million. On the positive side, there is an order backlog of 755 MW.


    Hydrogen and electric mobility are markets with huge potential. In the e-car market, BYD is stepping on the gas and could even knock Tesla off its throne as the largest manufacturer. The expansion into Germany is, in any case, a warning signal for competitors. In the hydrogen sector, it doesn't always have to be Nel and Plug Power. Second- and third-tier companies like ITM Power and First Hydrogen also offer opportunities. However, both - and all other hydrogen companies - will have to significantly increase their sales in the coming years.


    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.

    Risk notice

    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.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



    Related comments:

    Commented by André Will-Laudien on February 29th, 2024 | 08:30 CET

    Uranium with exploding demand! Kraken Energy ideally positioned, hydrogen with Nel ASA and Plug Power in rebound?

    • Mining
    • Uranium
    • Hydrogen
    • climatechange

    Some politicians are feverishly dreaming of making energy generation climate-neutral! Those who take a closer look at the matter realize that the speed of adaptation to more sustainable electricity production must be supported by sizeable public investment budgets. In Germany and the EU, so-called eco-taxes are levied on private transport, which are used to finance alternative energy generation. That is the green theory, as expensive environmental projects should benefit the general public. Because the EU recently gave nuclear energy the "green light" in its taxonomy, this form of energy is now coming back into focus. The protagonists of this view are the nuclear power supporters France, Spain, Poland and the Czech Republic, with Germany notably staying out of this topic. Worldwide, over 50 reactors are expected to come online in the next few years, and what is needed for that is uranium. Which shares should be in focus now?

    Read

    Commented by Juliane Zielonka on February 29th, 2024 | 08:15 CET

    Defense Metals, Coinbase, Volkswagen: Critical metals for pioneering technologies

    • Mining
    • RareEarths
    • crypto
    • AI
    • Electromobility

    The demand for critical metals is increasing rapidly worldwide. From growing digitalization to the increased use of cryptocurrencies and AI, from advances in medical technology to electromobility and defense technology - all these areas rely on these critical raw materials. Defense Metals Corporation is an experienced explorer in British Columbia whose Wicheeda project is designed to provide these critical metals. Forward-thinking companies like the crypto exchange Coinbase serve many users who use rare earth metals to power their hard drives for crypto mining. Volkswagen also requires this raw material because car consumers in China have very different needs when it comes to vehicle software than those in the European market. A new CEO for the subsidiary and software company CARIAD knows exactly what needs to be done...

    Read

    Commented by André Will-Laudien on February 28th, 2024 | 08:00 CET

    E-mobility versus combustion engines: Tesla and BYD stumble, Mercedes-Benz and Globex Mining in Vogue!

    • Mining
    • Commodities
    • RareEarths
    • Electromobility

    The Tesla plant in Brandenburg is discharging polluted wastewater into the canals. Permissible limits for phosphorus and nitrogen are exceeded by up to six times. Elon Musk has not yet reacted to the accusations, as he is busy planning the expansion of his production facility. If the authorities were to take action here, the plant could also be subject to a production stop until the harmful sources are eliminated. Once again, environmental protection and the climate debate clash with the self-interest of foreign producers seemingly not on the radar of existing EU regulations. The water debate is nothing new. Since the plant in Grünheide went into operation, local communities have had to contend with a drop in the groundwater level because the plant draws an impermissible amount of water. For those finding Tesla unsympathetic due to these issues, look for other opportunities in the automotive sector!

    Read