First Hydrogen, Delivery Hero, Porsche - New markets, new challenges, and optimistic analysts

First Hydrogen: Innovation leader in emission-free vehicle technology and green hydrogen for the future

First Hydrogen is an innovative company in the field of environmentally friendly mobility, with locations in Canada and the UK. The Company is characterized by two business areas: the development of zero-emission vehicles and the production and distribution of green hydrogen.

As the first and only road-legal FCEV, First Hydrogen is well positioned to benefit from Europe's transition to green hydrogen. The vehicle is similar to the vans used by logistics companies such as Amazon in local road transportation. The FCEV vehicle has proven its ability to perform demanding tasks in four tests. Be it transporting heavier payloads, towing other vehicles, or operating additional equipment. There was no loss of performance or shortened ranges during test operation in wintry temperatures. These are valuable findings for future areas of application in northern European countries, for example, or in Canada and the US. The individual situations tested also offer a wealth of possibilities for future customers. A large market is open to the Company, from police and fire department vehicles to city cleaning and logistics of all kinds. The drivers of the test vehicles also praised the ease of use, quick refueling, and range (630 km on a single tank).

As an industry pioneer, First Hydrogen has also built a hydrogen ecosystem through partnerships with various providers for refueling and delivering green hydrogen. The renowned company Ballard Power is one of the partners. Today, the Company offers a wide range of clean energy solutions in various areas, such as transportation, stationary power, and portable energy applications. The Ineos Group, a British multinational headquartered in London, is the fourth-largest chemical company in the world as of 2021 and is also a partner of First Hydrogen. Ineos plans to invest over EUR 6 billion in the development and expansion of renewable energies in the coming years.

First Hydrogen also announced the completion of the first tranche of its private placement of convertible debenture units, raising gross proceeds of CAD 540,000. Each unit consists of CAD 1,000 in principal amount, convertible into 1,851.85 common shares and 1,851.55 share purchase warrants. The debentures mature on the second anniversary of the date of issuance and bear interest at 8% per annum.

In connection with the Offering, the Company paid Canaccord Genuity Corp. a fee of CAD 43,200 and issued 80,000 warrants. Each finder's warrant entitles the holder to purchase common shares of the Company at a price of CAD 0.54 per share until July 9, 2026.

Delivery Hero: South Korean coup cushions potential EU fine - shares soar despite antitrust concerns

Shares in the food delivery service Delivery Hero rose significantly by over 11% this week, topping the list of winners in the MDAX. An announcement by the South Korean subsidiary triggered this jump in the share price. The Seoul-based delivery app Baemin, which is part of Delivery Hero, is planning a significant increase in its commission fees. The fee that restaurants must pay for using the platform will be raised from around 7% to almost 10% of the order value.

Experts from the major US bank JP Morgan estimate that this fee increase could boost Delivery Hero's annual operating result (EBITDA) by around EUR 150 million. Nevertheless, this move may have been made to offset the threat of fines from the European Commission. Delivery Hero announced earlier this week that it is facing a fine of over EUR 400 million for alleged antitrust violations. The allegations include alleged anti-competitive agreements to share national markets, the exchange of sensitive business information, and non-solicitation agreements. A cash injection of EUR 150 million to balance the balance sheet comes at just the right time.

The Company has emphasized its willingness to cooperate with the Commission and refers to its cooperation in previous unannounced searches in July 2022 and November 2023. Delivery Hero has also announced that it will significantly increase its existing provisions of EUR 186 million.

Porsche share on the rise after positive pre-close meeting

Porsche AG had a pleasing stock market day midweek: the luxury car manufacturer's shares rose by 3.9%, making it one of the top performers on the DAX. The trigger for this price increase was positive analyst assessments following an investor meeting the previous day.

In this so-called pre-close meeting, which took place before the publication of the quarterly figures, Porsche was apparently able to convince investors. One trader reported improved margins and optimized cash conversion in the second quarter. This underlines the resilience of the luxury segment in the face of the weakening Chinese market.

Renowned analyst firms such as Goldman Sachs and Stifel are confident. Goldman Sachs maintains a "Buy" recommendation for the share and expects normalization after a challenging first quarter marked by model changes and delivery difficulties in the US. Stifel forecasts a significant improvement in margins and confirms Porsche's full-year forecast of a 15% to 17% margin.

Despite the current rise in the share price, the Porsche share has lost over 20% of its value in the past three months. This is partly attributed to the weakness in the important Chinese market. However, the positive response to the investor meeting could now initiate a turnaround and strengthen investor confidence in the luxury carmaker, which will be spun off from Volkswagen in 2022.

According to Reuters, Porsche recorded a 7% decline in sales figures to 155,945 vehicles in the first half of 2024, with sales in China falling by a third. The main reason for this is the tense economic situation in China. In Europe (excluding Germany), sales rose by 6%, while Germany recorded an increase of 22%. North America recorded a 6% decline in sales. The best-selling model worldwide is the Porsche Cayenne, with 54,587 units.

First Hydrogen is successfully positioning itself in the green mobility market by developing high-performance FCEV vehicles and building a hydrogen ecosystem. The Company benefits from partnerships with industry leaders and the increasing demand for green energy solutions. The positive test results and the expansion of the financing base strengthen its future prospects. For investors, the Company could become a rising star in the still-young hydrogen market. Delivery Hero is reducing restaurant profits on its platform by swiftly raising fees from 7% to 10%. The stock market cheered, but it appears this move is related to increasing reserves due to the impending fine for antitrust violations. Porsche recorded declining sales figures in the first half of 2024, especially in China. Despite these setbacks, analysts remain optimistic due to positive margin development and a stable positioning in the luxury segment. Investors are responding positively to the improved business outlook.