October 22nd, 2021 | 12:18 CEST
Clean Logistics, Plug Power, BYD - Huge upheavals in the transport industry fuel share prices
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
Clean Logistics - The sustainability cure for the existing vehicle fleet
The German Company Clean Logistics, although already founded in 2018, is a newcomer to the industry. With a simple but very clever concept, the Hamburg-based Company is setting out to put the fear of God into the top dogs of the heavy-duty and public transport sector. The Company, which only went public in August through a reverse IPO, relies on a conversion strategy in which conventional, diesel-powered trucks and buses are converted to run on the climate-friendly gas hydrogen. Fleet operators, for example, can gradually convert their existing fleets to a more climate-friendly operation.
For this purpose, the conventional drive train of the vehicles is completely removed and equipped with a fuel cell, a non-combustible battery storage system, a new type of drive axle with wheel hub motors, and control software. After the transplant, which cost around EUR 500,000 but will continue to be subsidized by the state at around 85% until at least 2024, the vehicles will achieve ranges of several hundred kilometers on one tank of fuel, the time required for which is roughly comparable to a conventional refueling stop. The Company has already demonstrated that the conversion process works: for several months now, a Mercedes-Benz Citaro public transport bus converted by Clean Logistics has been running in regular service without any problems for the Uckermärkische Verkehrsgesellschaft (UVG). Delivery of another bus to UVG is still planned for 2021.
However, the Company is not only targeting public transport buses. Those responsible are also focusing on converting tractor units in heavy-duty transport of up to 40t. In order to massively expand its conversion capacities and thus be able to work off the order books, which are currently already well-filled until 2025, the Company raised around EUR 4 million in cash last month in the form of a rights issue. However, to reach the target of around 300 retrofits per year in 2023, further capital measures will undoubtedly be required. The Company will thus be able to offer functioning solutions much earlier than established manufacturers such as Mercedes-Benz or MAN, which have not held out the prospect of their corresponding e-models being ready for series production until 2025 or 2026.
Plug Power - Numerous new projects and cooperations
The former stock market darling, Plug Power, whose shares have undergone a significant correction of more than 50% since the beginning of the year, is returning to its former high form with the announcement of new projects. The Company recently announced the acquisition of the American liquefied hydrogen specialist Applied Cryo Technologies as part of the announcement of its Q2 figures, which were impressive with a doubling of sales to EUR 122 million compared to the corresponding quarter of the previous year. The Company, which provides services as well as technologies and equipment, is expected to help Plug Power build a hydrogen ecosystem in the US.
Additionally, Plug Power underscored its position in the market by announcing further collaborations with Airbus and startup Universal Hydrogen. In line with this, the Company recently announced its intention to open its European headquarters in North Rhine-Westphalia as early as the beginning of 2022. Analysts are impressed by the sustained positive news flow. Most of them see the share as a clear buy, with a target price of around USD 42. That corresponds to a price potential of about 27%.
BYD - All-time high reached
BYD - the name of China's largest e-vehicle manufacturer stands for "Build Your Dreams". And a dream is also the share price development. On October 20, this reached a new all-time high of around HKD 295. However, analysts are convinced: There is still more to come! The price target of the consensus estimate is consequently around HKD 330, and the majority of analysts continue to recommend the share as a buy. The reason for the recent price rally is probably the continuing positive news flow from the Middle Kingdom. The Company reported that the number of NEVs (New Electric Vehicles) sold in the third quarter almost doubled compared to the previous quarter. And this, despite bottlenecks in semiconductors and lithium. There was also an announcement to strengthen sales in Europe. To this end, a cooperation agreement was concluded with a Norwegian distributor to sell the BYD Tang SUV. In addition, the Group received a new order from Spain for two 12-meter buses for its electric bus division, which has recently been somewhat weakening.
The future is burner-free. At least as far as fossil fuels are concerned. Otherwise, the race of the systems is open. The advantages of hydrogen technology for refueling are great at first glance, but in the meantime, batteries can also be filled with energy in ever shorter charging cycles. Perhaps several systems will exist in parallel. So which stock promises the best risk-return ratio? BYD has a leading market position. Plug Power, with its numerous collaborations, should also look positively into the future. However, much will depend on the price of hydrogen. Clean Logistics shares offer the greatest opportunity but also the highest risk. There is already a proof of concept. Production capacities still need to be built up by the company.
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