On April 17, Sinohytec (02402. HK) (688339.SH) A-share and Hong Kong stock prices have ushered in a sharp rise, A-share stock prices recorded a daily limit at the end of the session, H-share share prices rose more vigorously, once as high as HK$50 per share, compared with yesterday's closing price of HK$29.05, an increase of 72.1%, a new high since listing. As of the close, Hong Kong stock Sinohytec closed up 17.38% at HK$34.1 per share.
On the news side, the Sichuan Provincial Research Conference on Further Promoting the Development and Promotion and Application of the Whole Green Hydrogen Industry Chain was held on the 16th. At the meeting, the relevant person in charge of the Sichuan Provincial Department of Transportation said that the next step will be to actively explore the policy space, explore the free highway toll for hydrogen energy vehicles, and take the largest support for the hydrogen energy industry.
Some analysts pointed out that if the above policies can be successfully implemented, Sichuan will become another province after Shandong to implement high-speed free hydrogen energy vehicles, which also strengthens the market's expectations for further diffusion of policies.
Or boosted by this good news, in the secondary market, including Yihuatong, Jingcheng Electromechanical Co., Ltd. (00187. HK) (600860.SH), Shanghai Electric (02727. HK) (601727.SH), Dongfang Electric (01072. HK) (600875.SH) and other "A+H" hydrogen energy concept stocks collectively rose sharply. Among them, as of the close, the share prices of A-share Jingcheng Electromechanical Co., Ltd. and Yihuatong both rose by the limit, Shanghai Electric closed up 2.49%, and Dongfang Electric closed up 5.19%; H-share Jingcheng Electromechanical shares rose 13.17%, Shanghai Electric rose 10.19%, and Dongfang Electric rose 8.3%.
Hydrogen energy, as a strategic emerging industry and a key development direction of future industries in the mainland, has been continuously promoting favorable policies related to hydrogen energy from the national to the local level since the beginning of this year.
In this year's "Government Work Report", hydrogen energy was mentioned for the first time as a cutting-edge emerging industry. On March 22, the National Energy Administration issued the "Guiding Opinions on Energy Work in 2024", which clearly proposed to accelerate the preparation of relevant policies to promote the high-quality development of the hydrogen energy industry, promote the innovation and industrial development of hydrogen energy technology in an orderly manner, steadily carry out pilot demonstrations of hydrogen energy, focus on the development of renewable energy hydrogen production, and expand hydrogen energy application scenarios.
At the local level, relevant policies have been accelerated. At the end of February this year, Shandong Province announced that from March 1, it will exempt hydrogen energy vehicles from highway tolls (trial period of 2 years), becoming the first province in the country to implement free high-speed hydrogen energy vehicles. At the local two sessions at the beginning of the year, according to the statistics of the Hydrogen Alliance Research Institute, 22 of the 31 provincial-level administrative regions included hydrogen energy in the government work report.
With strong policy support, China's hydrogen energy industry has developed rapidly. The China Hydrogen Alliance predicts that by 2025, the output value of the hydrogen energy industry in mainland China will reach 1 trillion yuan. By 2050, hydrogen energy will account for more than 10% of the mainland's final energy system, and the annual output value of the industrial chain will reach 12 trillion yuan.
At present, the hydrogen energy industry chain in mainland China has begun to take shape, which is roughly divided into three key links: hydrogen production, hydrogen storage, transportation and refueling, fuel cells, and terminal applications (industry, transportation, energy storage, electricity, etc.).
In the process of promoting and applying the hydrogen energy industry, the transportation field represented by fuel cell vehicles is expected to take the lead in large-scale promotion, thereby driving the development of the entire industrial chain.
According to data from the China Association of Automobile Manufacturers, in the first quarter of this year, the total production and sales of fuel cell vehicles in China were at the highest level in history, with the total production and sales of nearly 1,000 vehicles, an increase of 33.4% and 14.7% year-on-year respectively.
What's even more gratifying is that the number of fuel cell vehicle tenders has also increased by leaps and bounds this year. According to the hydrogen cloud chain database, after the number of fuel cell vehicle tenders in the first quarter exceeded the total amount of last year, the number of fuel cell vehicle tenders in April was increased again, and the total number of domestic fuel cell vehicle tenders reached nearly 5,000 during the year. Combined with the above data, the launch of fuel cell vehicles is expected to further accelerate this year.
According to a recent research report by China Securities Securities, in April, the key factors affecting the stock prices of listed companies related to the hydrogen energy industry will shift from policy expectations to whether the actual orders, bids and sales data of the fundamentals can exceed expectations. It is expected that from April, the fundamental data of the hydrogen energy industry chain will usher in a large marginal change.
In view of this, in the capital market, since the beginning of the year, the concept of hydrogen energy has been hyped several times, and Sinohytec, as a fuel cell leader, its development prospects are naturally the most favored by investors.
As an enterprise focusing on fuel cell system manufacturing, nearly 90% of Sinohytec's revenue comes from the fuel cell system business, which is known as the "CATL" in the field of hydrogen energy by the industry.
According to the survey data, in 2023, China's hydrogen fuel cell vehicles will be sold a total of 7,760 units, a year-on-year increase of 55%, of which Sinohytec will have a total of 1,631 units, accounting for 21%, ranking first.
However, from the perspective of performance, as an industry leader, Sinohytec's revenue scale has maintained stable growth, but its loss has been expanding year by year, and from 2020 to 2023, the net loss attributable to the parent company will be 366,000 yuan, 162 million yuan, 167 million yuan and 243 million yuan respectively.
Objectively speaking, such a performance is bad, but it is also expected. After all, the fuel cell industry is still in the early stage of industrialization and needs to continue to increase investment. And compared with the mainstream technology lithium battery, the proportion of hydrogen energy vehicles is almost negligible. Due to the lack of economies of scale, losses have become an inevitable trend, which has also put pressure on valuations to a certain extent. This is one of the reasons why Sinohytec's share price has not been able to get a reasonable value in the past.
Author: Bottle