March 21st, 2022 | 12:13 CET
BYD, First Hydrogen, Continental - Hydrogen and e-mobility: Shares with huge potential
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"[...] We can convert buses and trucks to be completely climate neutral. In doing so, we take a modular and incremental approach. That means we can work with all current vehicle types and respond to new technology and innovation [...]" Dirk Graszt, CEO, Clean Logistics SE
First Hydrogen - Only the finest
A report at the end of last year, went into detail about the advantages of the "best of strategy" of the Canadian Company based in Vancouver. With its "Utility Van", First Hydrogen is developing a light commercial vehicle and relies on integrating existing technologies and a proven chassis. It also brought 2 world market leaders on board.
Ballard Power, one of the world's leading providers of innovative clean energy with a hydrogen fuel cell fleet that has traveled over 50 million km worldwide, was recruited to develop the technology. A definitive agreement was reached for the design with AVL Powertrain Limited, the world's largest independent automotive development, simulation and testing Company.
The partners are making good progress with developing the two demonstration vehicles, which will run on green hydrogen. The first utility van is expected to be ready for demonstration testing as early as June. The first of two fuel cell stacks to be provided by Ballard has already been built, and all necessary components added, including air system, thermal management and cooling system, and hydrogen supply. On-road testing is expected to take place on schedule in June 2022, with final delivery for on-road operation in September 2022.
Steve Gill, First Hydrogen's automotive CEO, said, "Our joint development of this hydrogen fuel cell vehicle will establish us as the market leader for fuel cell vehicles in the light-duty vehicle sector. It will position us well for our next generation of customized hydrogen fuel cell vehicles, which will incorporate all of the technical developments we have achieved to date." After a correction due to the weak overall market, First Hydrogen's shares held their ground above the EUR 1.80 resistance level. A break of the EUR 2.00 resistance would generate a prominent buy signal.
Continental - Interesting constellation
An interesting entry opportunity should currently arise at the automotive supplier Continental. On the one hand, the Hanover-based Company successfully tested the support area at around EUR 60. On the other hand, the Company published strong business figures that could still provide room for improvement. The Company defied both the holey supply chains and the delays regarding the Corona pandemic. The potential impact of the war between Russia and Ukraine is also less severe, with business in Russia contributing less than 1% of total sales.
Overall, adjusted pre-tax profit increased by almost 38% to EUR 1.9 billion. Compared with a loss in 2020, Continental exited the ring with a net profit of EUR 1.5 billion in the past fiscal year. For 2022, Continental expects consolidated sales of EUR 38 billion to EUR 40 billion, with an adjusted EBIT margin of between 5.5% and 6.5%. Following a successful 2021, a dividend of EUR 2.20 per share will be distributed to shareholders.
Despite the promising figures, major Swiss bank UBS lowered its price target from EUR 136 to EUR 110, leaving the rating at "buy". In an industry study on European auto suppliers published on Thursday, analyst David Lesne cut his estimates by up to 25% due to production and inflation risks.
BYD - Successful turnaround
After the strong sell-off of the past weeks, the electric mobility company BYD held the important chart support at EUR 20 and turned dynamically upwards. It is currently necessary to overcome the resistance at EUR 27.70 in order to generate further potential up to the EUR 30 range.
Fundamentally, the Company co-financed by Warren Buffett was able to announce the delivery of another 21 electric buses to Copenhagen, which were handed over to the Danish bus operator Anchersen. These are 13m-long new-generation low-entry electric buses that will run on several lines operated by public transport operator Movia in Copenhagen. This is the second order for BYD from Anchersen. "We have placed great emphasis on green transportation for many years. The innovations and support of our suppliers are helping us lead the green transformation in Copenhagen," says Anchersen CEO Poul Anchersen. "The all-electric buses ordered this time are already in daily use, and we promise to provide more innovative electric buses for Copenhagen over the next 12 years."
The crisis in Ukraine and the ongoing sanctions against Russia clearly demonstrate Germany's dependency. Accelerating the expansion of renewable energies and alternative drives with regard to electric mobility is extremely important. First Hydrogen, as well as BYD, are attractive producers. Continental is also worth a closer look at the current level.
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