August 17th, 2022 | 11:58 CEST
Daimler Truck, dynaCERT, Nikola - Which transportation stocks are taking off?
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"[...] We know exactly what we are doing and are implementing what we consider to be a proven technology in an industrially applicable and scalable way. [...]" Uwe Ahrens, Director, Altech Advanced Materials AG
Daimler Truck - Good quarterly figures
At Daimler Truck, the view was long held that e-trucks represented the future. In the meantime, they have moved away from this view and are also planning trucks with hydrogen fuel cells for the future. Since the vehicles always depend on the area of application and the respective task, the strategy of driving on two tracks seems to make sense. At the moment, however, the main problem at Daimler Truck is not the drive types but the lack of chips and the shortage of drivers. According to Handelsblatt, thousands of trucks cannot be delivered.
Despite this situation, the group sold over 4,000 more vehicles in Q2 than in the same period last year. Sales increased by 18% to EUR 12.1 billion, and EBIT increased by as much as 24% to around EUR 1 billion. The order backlog remains at a high level despite the price increase for trucks. The previous forecasts for 2022 were confirmed. Sales of between EUR 48 billion and EUR 50 billion are expected with a margin of 7-9%. CFO Jochen Goetz commented, "Given the ongoing challenges in the supply chain as well as in raw materials and energy prices, we can be satisfied with our Q2 results."
Conditions for commercial vehicle demand remain good in the second half of the year and the group expects supply chain issues to ease. Following the announcement of the quarterly figures, there were four buy recommendations from Deutsche Bank and Goldman Sachs, among others. Price targets between EUR 35 and EUR 52 were announced. The share is currently trading at EUR 28.60 and still has upside potential, especially if the group eliminates the semiconductor shortage.
dynaCERT - IAA Transportation is getting closer
dynaCERT owns a patented technology called HydraGEN, which enables diesel vehicles to reduce their emissions by over 50%. The emission of the toxic Nanox is even reduced by up to 88%. In addition, fuel consumption is reduced, and engine durability is increased. These effects are achieved by feeding hydrogen and oxygen gases into the combustion engine. In other words, complete and clean combustion is achieved at the emission source through the addition of hydrogen. In an interview, CEO Jim Payne revealed that he is in talks with some of the largest companies in North America.
The sticking point currently is CO2 allowances. Many companies are willing to use dynaCERT's technology once they receive carbon credits for it. Here, the Company took the right steps in Corona times and turned to Verra, which is one of the largest in the field of approval and registration of carbon credits. For the past two years, they have been working towards the big goal and have created a tool for measurement with the Company's own HydraLytica software. The CEO expects certification with the Verified Carbon Standard seal to come this year.
Ideally, this milestone will be achieved before the International Motor Show IAA Transportation in Hanover, which will take place from September 20 to 25. The Company will present itself there in Hall 24, Stand D15. With the certification, the Company would have all sales arguments on its side and then nothing should stand in the way of the upswing at dynaCERT. After running sideways for a month, the share suddenly saw larger buyers on August 15. The share immediately increased by more than 40% to currently CAD 0.145. If the certificates come, the current annual high of CAD 0.30 will be approached quickly.
Nikola - Production and sales are running
Nikola Corporation is a technology innovator and integrator working to develop energy and transportation solutions. The Company operates in two business segments: Truck and Energy. The Truck business unit develops and markets fuel cell electric (FCEV) and battery electric vehicle (BEV) semi-trucks for the trucking sector. The Energy business unit develops and builds a network of hydrogen refueling stations and offers BEV charging solutions for its FCEV and BEV customers and other third-party customers.
The Company has long suffered from the over-promises of former CEO Trevor Milton. The current CEO is still Mark Russell, but he will make way for former Opel CEO Michael Lohscheller at the end of the year. The German is considered an automotive expert and is expected to lead the group into a better future. In the second quarter, the Company produced 50 e-trucks, 48 of which were delivered to customers. Between 300 and 500 vehicles are expected to be produced by the end of the year.
As for the hydrogen-powered trucks, the Company is still in the beta phase. The first steps toward Europe have also been taken. With partner Iveco, a first version of the BEV has been manufactured for the European market. The important thing is still to stabilize the Company. Takeover rumors have recently surfaced, and according to these, Nikola could be a target for Toyota Motor or Stellantis. The speculation led to the share price jumping significantly. From USD 4.42, it went up to USD 8.97 at the peak. Recently, there was profit-taking and one currently pays USD 6.72 for a share certificate.
More and more freight vehicles are needed to transport goods. If the ambitious climate targets are to be achieved, alternatives are needed. Daimler Truck is now pursuing a two-pronged approach to propulsion, just like Nikola. The electric version still has a head start with both companies. dynaCERT, on the other hand, directly helps companies to reduce their emissions in the existing fleet. If these companies receive CO2 certificates for using dynaCERT products in the future, this can become a game changer.
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