Plug power tank lorry /Photo provided by SK
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As the stock price of Plug Power, a US hydrogen company, surged nearly doubling this month, the’hydrogen economy’-related stock, which uses hydrogen as its main energy source, is attracting attention once again. With the Democratic Party taking over the White House and Congress, higher expectations for fostering eco-friendly industries also had an impact. However, since hydrogen fuel is still far from being commercialized and most stocks have risen with expectations for the future rather than performance, experts advise that it is better to invest in the market as a whole rather than individual stocks.
Hydrogen economy-related stocks soaring in the US
In the US stock market, hydrogen-related stocks are constantly rising. As of the 14th (local time), the plug power has increased about 16 times in the last 1 year. The company possesses the technology for producing polymer electrolyte fuel cells (PEMFC) for vehicles, the electrolytic cell technology that produces hydrogen without carbon dioxide, and operates a hydrogen charging station. At the beginning of the year, the news that it was targeting the European hydrogen commercial vehicle market by establishing a joint venture with the French Renault Group was reported, and the stock price rose by more than 30% in one day. The same is true of Fuel Cell Energy, an American hydrogen fuel cell company. The stock price, which was in the $2 range a year ago, is currently trading at $17.
Other overseas hydrogen fuel cell manufacturers include Canada’s Ballard Power (up 56% since the beginning of the year), Sweden’s Power Cell (32%), the US Bloom Energy (36%), and the UK’s ITM Power (28%). .
There are also voices of concern over a surge in stock prices. Wall Street diagnoses that plug power has risen too much. The average target price of a brokerage company for Plug Power is $47.78, which is 70% of the current share price ($66.54). JPMorgan presented a target price of $10 for Fuel Cell Energy on the 14th and lowered its rating.
Domestic hydrogen economy-related mainstream companies are companies that have secured their own fuel cell technology or supply related technologies or parts to Hyundai Motors, which produces hydrogen vehicles. Representative examples are Doosan Fuel Cell and S Fuel Cell, which are hydrogen fuel cell producers. Hyung-do Ham, a researcher at Kakao Pay Securities, evaluated Doosan Fuel Cell as “the only company that generates profits among global fuel cell companies for power generation and is the leading player in the growth of the hydrogen industry in the future.”
There are also Sangah Front Tech, a hydrogen car material manufacturer, Neuros, a hydrogen car air compressor manufacturer, and EM Korea, which operates a hydrogen charging station. Hyundai Mobis, which supplies parts to Hyundai Motor’s hydrogen cars, and Iljinia, which supplies hydrogen tanks, are also hydrogen economy related stocks. Han Byeong-hwa, a researcher at Eugene Investment & Securities, expected, “As the hydrogen car market is expanding to Europe and the United States following Asia, a global love call for domestic hydrogen car value chain companies will begin.”
However, the stock price is different. Excluding Hyundai Mobis and Neuros this month, the share price growth rate remained at a single digit or fell. Neuros rose 62.61% during this period on the news that it received investment from Chinese state-owned enterprises.
In the early days of the hydrogen economy, which ETFs to invest in
Experts recommend investing in the industry as a whole, since this is the beginning of the hydrogen economy. It is explained that all stages of’production-storage-transport-charge-use’ should be paid attention until the infrastructure is established. Lee Sang-heon, a researcher at Hi Investment & Securities, said, “Now, this is the time when future growth will act as a driving force for stock price rise.” Emphasized.
As an alternative method of investing in the initial market, an ETF is considered an alternative. In Korea, the’KBSTAR Fn Hydrogen Economy Theme ETF’, which was listed at the end of October last year, is gaining popularity. It is the only product currently listed in Korea with the theme of’hydrogen’. The stock price steadily rose after listing by incorporating Hyundai Mobis (17% of the proportion), Hyundai Motors (16%), Hanon Systems (14%), and Doosan Fuel Cell (11%). It has risen by 18% in the last month.
Among overseas ETFs, the scope should be expanded to eco-friendly ETFs. ‘Global X Clean Tech ETF’ (CTEC),’IShares Global Clean Energy ETF’ (ICLN), and’ALPS Clean Energy ETF’ (ACES) have a high percentage of plug power holdings over 10%. ‘Invesco Wilder Hill Clean Energy (PBW)’, one of the representative eco-friendly ETFs, also contains pure cell energy, ballad power, and plug power. All of them rose more than 40% this year.
Reporter Hankyung [email protected]
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