May 17th, 2022 | 12:25 CEST
Plug Power, First Hydrogen, Rheinmetall - On the verge of a breakthrough
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"[...] We are committed to stay as the number one Canadian and global leader in the Hydrogen-On-Demand diesel technology [...]" Jim Payne, CEO, dynaCERT Inc.
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.
Plug Power - The overpriced market leader
Not only once, a detailed report warned of the high valuation and the risk of a major setback. At that time, the paper stood at around USD 23; currently, it is around USD 10 less. The dangers of a further landslide to the striking resistance area in the EUR 8.00 range are still intact. One reason for the continuing downward pressure was the disappointing quarterly figures for the first quarter of the current year.
Expectations were clearly missed in terms of both revenues and losses. CEO Andy Marsh announced a loss per share of USD 0.27, while analysts had expected a loss of only USD -0.156 per share. Revenue for the past quarter was valued at USD 140.8 million, up 95.66% from the same quarter last year, when it was USD 72.0 million. However, experts expected an even greater increase to USD 144.8 million. Considering the continued uncertainty of the overall market and the overvaluation mentioned above, Plug Power is, at best, a watch position in the near term.
First Hydrogen - Facing important milestone
With a market capitalization of EUR 106.70 million, First Hydrogen is still far from a similar overvaluation. However, the gap with the market leader could be closed somewhat soon. Chairman Nicholas Wrigley will provide further details at the 3rd International Investment Forum IIF on May 19, 2022. Registration to the virtual event is free of charge.
First Hydrogen is a new player in the light-duty vehicle sector using fuel cell technology. The Canadians aim to become the leading developer and manufacturer of zero-emission, long-range hydrogen-powered commercial vehicles in the UK, EU and North America, combining the best technologies. The collaboration between First Hydrogen Corp's wholly-owned subsidiary, First Hydrogen Limited UK, and Ballard Power and AVL Powertrain UK was sealed back in the second quarter of 2021. Two utility vans, for which the MAN eTGE is intended as a donor vehicle, will be delivered as prototypes as early as the third quarter of the current year.
In an update, it has now been announced that operational testing of the two MAN-based light-duty fuel cell utility vehicles can begin as early as next month. Given the interest already expressed, it is believed that these trials will be conducted with a significant number of fleet operators and buyers. These trials will be used to drive product development and generate customer engagement and partnerships around First Hydrogen Automotive's future fleets of light-duty vehicles.
A few weeks ago, the Company completed an oversubscribed private placement that raised gross proceeds of CAD 6.06 million for the Company. As a result, First Hydrogen is well funded for the next few months until the scheduled delivery of the utility vans. After a share price setback in the wake of the weak overall market, the Company appears attractive at a low level.
Rheinmetall - Firing from all guns
Since Russia's invasion of Ukraine, defense stocks are once again all the rage. As a result of the rearmament of the various NATO countries, Germany's Rheinmetall is one of the beneficiaries and has more than doubled in value in just a few weeks. In addition to the German armed forces, countless partner countries are placing orders with the Düsseldorf-based Company, whose order books are growing into new dimensions. Even at Rheinmetall, although no investor wants to hear this at the moment, the risks have been pointed out in a report.
On an operational level, the Düsseldorfers are now making common cause with 4iG and HM EI to set up a joint venture in Hungary to digitize the armed forces. In the process, the Düsseldorf-based company is to hold a majority stake of 51%, according to a press release. It added that a preliminary agreement on the establishment of a joint venture had been signed. The Company is to develop digital solutions for soldier systems in the field of mechanized infantry as well as flight and land simulation systems for training.
Green hydrogen will take a dominant position in the coming years. In this context, the market leader Plug Power is well positioned, but its valuation is currently too high. Similarly, this is likely to be the case for defense contractor Rheinmetall. In contrast, First Hydrogen appears more attractive again after the correction.
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