OPPORTUNITY and WARNING SIGNAL! Heidelberger Druckmaschinen, Steyr major shareholder Mutares, and Pure Hydrogen shares!

Pure Hydrogen: New champion in alternative drive systems?

Is a new champion for alternative drive systems emerging in Australia? At the very least, Pure Hydrogen appears to be working on just that. The Company name is therefore to be changed to Pure One at the upcoming annual general meeting. It is a move that makes strategic sense.

This is because the technology company is now working on a wide range of transport solutions. Pure is developing battery-electric and hydrogen fuel cell vehicles, as well as hydrogen equipment, including refueling solutions and compact production units housed in shipping containers.

The name change is primarily due to the increasing sales success of electrified commercial vehicles. Pure points out that the upfront costs are lower and government support is greater in this area, which should have a correspondingly positive effect on growth and margins. The Australian company has unveiled two new vehicles in this segment: the HD100C hybrid coach and the TG23 hybrid truck. Prices are comparable to those of conventional diesel variants. At the same time, fuel savings of over 35% are possible.

But there is also a lot happening in the field of hydrogen-powered vehicles. Pure announced that it had received orders from major customers in the construction, infrastructure, and waste management sectors. Its customers also include the German group Heidelberg Materials.

The chances are good that the Company will not only make headlines with its name change in the coming months. The stock is now also traded on the Frankfurt Stock Exchange and offers the opportunity to get in early on a potential multiplier.

Steyr parent Mutares facing problems

While Pure Hydrogen is still in its infancy and investors can speculate on a multiple increase, this has already happened at Steyr Motors in the current year. Now, the challenge is operational growth to justify a market capitalization of almost EUR 280 million - a goal that appears within reach as order intake is already moving in the right direction. In contrast, Steyr's major shareholder, Mutares, currently has other problems:

BaFin has initiated an audit of Mutares' 2023 annual financial statements and the accompanying management report. There are concrete indications of possible violations of accounting regulations. On the one hand, the information on the remaining terms of receivables is unclear. In addition, there is no assessment of the expected development of the economic situation. It should be noted that short seller Gotham already pointed out inconsistencies in Mutares' annual financial statements last year.

Mutares emphasizes that the audit "only concerns certain disclosures in the notes and management report – not the balance sheet or income statement."

The Mutares share slipped by around 20% to EUR 24 following the BaFin announcement. In the meantime, the share price has recovered to almost EUR 28. However, the share remains volatile.

Heidelberger Druckmaschinen: Management buys, analysts warn

Heidelberger Druckmaschinen shares recently exploded. While the security was trading at EUR 0.96 at the beginning of April, it had already reached EUR 1.50 by mid-May. Last week, the share price then shot up to EUR 2.80 during intraday trading. The reason for this is increasing defense fantasies. The Company plans to participate in the defense boom through a strategic partnership with Vincorion. The aim of the partnership is for Heidelberg to supply energy control and distribution systems, and for Vincorion to integrate these into its Eurofighter generators.

The current operational development has also convinced investors. In the first quarter, the Company increased revenue by 16% to EUR 466 million. Adjusted EBITDA improved from -EUR 9 to EUR 20 million. In addition, the forecast of EUR 2.35 billion in revenue with an EBITDA margin of up to 8% for the current year was confirmed.

Management appears to be expecting further price rises. Last week, board members Jürgen Otto and Dr. David Schmedding bought additional Heidelberger shares.

However, analysts at Baader Bank are sounding a note of caution. In their view, the defense industry hype could be exaggerated and lead to disappointment. Their target price is therefore slightly below the current share price at EUR 2.

Hydrogen stocks have fallen out of favor due to recent issues at former investor favorites Nel and Plug Power. However, this is precisely what offers opportunities for newcomers like Pure Hydrogen. Especially since the Australians are positioning themselves much more broadly, as previously outlined. The stock appears undervalued relative to its potential. Management and analysts disagree on whether Heidelberger Druckmaschinen is still cheap. Time will tell who is right. Meanwhile, at Mutares, alarm bells are currently ringing. However, the current investigations by BaFin do not appear to pose a serious threat at this stage.