Researchanalyst
01.02.2022, Author: Stefan Feulner

Stock news: First Hydrogen - Expansion in the hydrogen sector — Partnerships fuel growth

  • Elektromobilität
  • Wasserstoff
  • Brennstoffzellen

The market correction for stocks related to electromobility, hydrogen and fuel cell technology continued to gain momentum in recent weeks. However, First Hydrogen (ISIN:CA32057N1042) was able to escape this. Since the publication of our initial report at the end of December '21, the share price has increased by around 63%. In addition to the positive share price performance, the Company has also shone on a fundamental level. For example, First Hydrogen is making good progress with the market launch of hydrogen filling stations. In addition, the quality of the management staff was significantly increased in order to achieve the targets.


Transformation for climate change

Until the middle of last year, companies identified with technologies for climate change knew only one direction - up. Shares related to electromobility, hydrogen or fuel cell technology were able to multiply in this wake. Then, since mid-2021, partly due to inflated, exaggerated valuations, a market-wide correction set in, which to date has probably not yet been fully completed.

First Hydrogen has significantly outperformed its peer group over the past six months. In terms of market capitalization, Nel ASA (EUR 1.65 billion) and McPhy (EUR 438.22 million) are still well ahead. First Hydrogen has a market capitalization of EUR 101.03 million. Source: S&P CapitalIQ Pro, as of 01/31/2022

One thing is certain, however, the transformation of the transport sector is in full swing and is supported globally by both politics and business. For example, road transport will fall under the emissions trading scheme from 2026, placing a burden on the cost of pollution and thereby providing an incentive to switch to cleaner fuels and invest in clean technologies. While battery-powered vehicles should prevail in passenger cars, the trend in the transport sector is toward hydrogen and the fuel cell due to range advantages and shorter charging times.

Best-of strategy offers advantages

Joining the light commercial vehicle incumbents is First Hydrogen, a new player in the market that aims to become the leading developer and manufacturer of zero-emission, long-range hydrogen-powered commercial vehicles in the UK, EU and North America by combining the best technologies. Already in the second quarter of 2021, the collaboration between First Hydrogen Corp's wholly-owned subsidiary, First Hydrogen Limited UK, and Ballard Power and AVL Powertrain UK was sealed. Two utility vans, for which the MAN eTGE is intended as a donor vehicle, are to be delivered as prototypes as early as the third quarter of the current year.

As part of the agreements with AVL and Ballard Power, First Hydrogen has begun the development and construction of two hydrogen-powered utility vans. Delivery of the prototypes is scheduled for the third quarter of 2022. Source: First Hydrogen

Entering the hydrogen fueling station market

In order to enrich their automotive strategy that will benefit their mobility customers throughout the lifetime of their First Hydrogen vehicles, an agreement was reached last year with FEV Consulting GmbH of Aachen, Germany, to design and build a prototype of a customized hydrogen refueling station for the hydrogen mobility market. The wholly-owned subsidiary NetZeroH2 has now been founded for this purpose.

Personnel build-up for ambitious goals

In terms of personnel, there has been a real shake-up around the experienced CEO Balraj Mann in recent weeks. Steve Gill has been appointed as Director of First Hydrogen UK Limited and Chief Executive Officer of the Automotive Division. Gill has extensive experience as an executive, board member and consultant to the automotive industry. His areas of expertise include powertrain technology and decarbonization of transport. Previously, Gill held the position of Director, Power Engineering at Ford of Europe and served on the Board of Ford Technologies Ltd.

In addition, Robert Campbell has been appointed as a non-executive director of First Hydrogen UK Limited, the Company's wholly-owned subsidiary. Mr. Campbell has been senior vice-president and chief commercial officer at Ballard Power Systems since 2017. His responsibilities include global business development, sales, marketing, product line management and customer service activities in Ballard's key power product markets such as heavy-duty vehicles, material handling and stationary power.

One of the key positions going forward will be held by Nicholas Wrigley. He has been appointed chairman and director of First Hydrogen UK Limited, according to the announcement, and will oversee the global development of First Hydrogen's hydrogen fuel cell light and medium duty commercial vehicle business and, in collaboration with AVL Powertrain UK and Ballard Power Systems, the construction of the Company's two road-legal hydrogen fuel cell demonstration vehicles. In addition, the new hire will be responsible for overseeing the construction of hydrogen refueling stations in collaboration with FEV Consulting GmbH.


Interim conclusion: At First Hydrogen, things are currently going well, and not just on the stock market. CEO Balraj Mann's ambitious goal of delivering at least 10,000 utility vans in the year 2025 is in place. Should the two prototypes be delivered in cooperation with Ballard Power and AVL, First Hydrogen would have a significant lead over comparable US companies, which have much higher stock market valuations. Entering the hydrogen fueling station market could also leverage cross-selling effects. The new managers have years of experience in the market and should significantly advance the targets. More details on First Hydrogen in our Report 12/2021.


Conflict of interest

Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

For this reason, there is a concrete conflict of interest.

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