Hyzon Motors was able to close the first quarter with a low stated loss of minus 0.03 USD per share. At the end of the quarter, cash and cash equivalents amounted to about 407 million USD. This should be evaluated in relation to the stock market valuation of about 1 billion USD. The build-up of capacity is proceeding according to plan. So 10 to 15 trucks for testing will be delivered to customers by the end of the year. A total of around 300 to 400 commercial vehicles are to be delivered in 2022. It is said that a variety of customers is involved, among them in China.Concerning the own hydrogen production, the company is focusing mainly on waste-to-hydrogen projects with partners, but also other projects with pipeline companies like TC Energy. Plus: In Europe, the share in Hyzon Motors Europe B.V. was increased from 50.5 to 75 percent – surely the right step and ultimately also a basis for a full takeover.
One milestone has been reached in the meantime: In the USA, production of the company’s own fuel cell stacks and MEAs (membrane-electrode assemblies) was started. Hyzon will also focus on, in addition to its own production of hydrogen-powered commercial vehicles, the repowering of existing diesel trucks. The chassis of these are readily available, whereas waiting or delivery times of up to 16 months are possible for new chassis. Hyzon will install its fuel cell system in the trucks or replace the old diesel engine system with it. They can be compared to the German company Clean Logistics, which is taking the same path of repowering. The Hyzon Repower program will be implemented together with partner Fontaine Modification.
The perfect complement to Nikola Motors in the area of H2 commercial vehicles. This market is furiously growing due, among other things, to statutory regulations on environmentally harmful emissions, which is readily seen by also the various collaborations of major truck manufacturers, like Daimler Truck with Cummins Engine in the USA, Toyota and Kenworth, or Cellcentric (Daimler/Volvo joint venture) here in Germany. Hyzon has the advantage of being able to offer a specially developed fuel cell system and hydrogen storage system as well as in-house H2 production, as a one-stop-shopping partner. It’s conceivable that Hyzon will be able to gain strategic partners – similarly to Nikola with Iveco.
The current stock market valuation is completely disproportionate with the prospects of the company and the global market it addresses. At the hydrogen summit in Rotterdam, Hyzon was distinguished for its technology and business model – a good sign and a confirmation of previous assessments.
Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.
Author: Sven Jösting, written June 11th, 2022