July 27th, 2022 | 11:45 CEST
Opportunity for BYD, Plug Power and dynaCERT? Russia turns on the gas tap
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
dynaCERT: Revaluation after certification?
Investors in the hot stock dynaCERT are currently waiting with bated breath for the pending certification of the technology for reducing CO2 emissions in vehicles. If the Canadians receive this certification, the share could face a revaluation. The potential is enormous. And this is what it is all about: dynaCERT offers a patented electrolysis system, "HydraGEN", for commercial vehicles, making it possible for fleet companies to improve the efficiency of diesel engines and reduce their pollutant emissions without high conversion costs. With HydraLytica, intelligent software has also been developed that records and analyzes consumption. This is the prerequisite for fleet companies to convert the CO2 saved into corresponding certificates and sell them. Tesla has been demonstrating for years what high revenues can be generated with such certificates.
The Verra auditing company is currently testing the emission savings. Should the independent testing institute in the field of climate protection award the dynaCERT technology the "Verra Verified Carbon Standard seal", the way would probably be clear for a worldwide rollout. Fleet operators - especially from the mining sector - are already testing the system. The share is currently trading at just EUR 0.08, corresponding to a market capitalization of less than EUR 30 million. At the beginning of 2020, over EUR 0.70 per share was still being paid. Then the Corona pandemic caused delays from which the share price has not yet recovered. But the coming months should be very exciting.
BYD: "Buffett shock" shaken off and analysts optimistic
The BYD share seems to have slowly recovered from the "Buffett price setback" in recent days. The transfer of Berkshire Hathaway's shareholding in the Chinese automaker from one depository to another had caused speculation about a possible sale. However, this does not seem to be confirmed, and investors are again focusing on the operating business. And here, BYD is doing very well. Sales figures in China are shooting up and expansion into new markets - including Japan - has been announced. The group is therefore continuing to invest in the expansion of its battery production capacities. An investment project worth around USD 1.5 billion has been announced. Within this, 16 battery production lines with a total capacity of 30 GWh are to be built. That means BYD's capacity will more than double to over 50 GWh, which would allow BYD to supply batteries not only for its own vehicles but also to other manufacturers of electric cars. A few weeks ago, there was already speculation that BYD could supply Tesla with batteries in the future. Since then, however, it has become quiet around the deal.
Analysts are convinced of BYD's prospects. Most recently, Citigroup was very optimistic. BYD will be the main winner of the industry consolidation. In the future, sales of 3.5 million vehicles are realistic. Therefore, the price target was raised to HKD 640, which corresponds to around EUR 80. The share is currently trading at around EUR 36. HSBC and JPMorgan also recommend the BYD share as a buy even if the price targets are somewhat more conservative at HKD 443 and HKD 410, respectively.
Plug Power: Is hydrogen production coming to the USA?
Plug Power's stock has lacked momentum recently. While competitor Nel was able to secure the largest order in the company's history, the American company is currently quiet. Instead, investors seem to be looking at the political developments in the US and their impact on Plug Power. There are increasing signs that US President Biden's plans to promote hydrogen and electric cars will not be implemented. That is because Senator Joe Manchin from West Virginia is opposing it. Coal production is of great importance in the state, and the senator fears for his re-election. But after last week's disappointment, there are now positive rumors again. There is speculation that a majority in the US Senate for the promotion of hydrogen could come about after all - perhaps as early as this week. Plug Power should benefit noticeably from this. After the share crashed from EUR 29 to below EUR 13 between April and May, it has worked its way up somewhat and stabilized at around EUR 17. If there is positive news from the political arena, it could head back towards the April high.
Hydrogen, electromobility and energy efficiency will remain important topics in the coming months and years. BYD and Plug Power have each established a market position to benefit from this. Courageous investors position themselves with dynaCERT because it should not be long until Verra's decision is reached.
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