First Berlin Equity Research has published a research update on H2APEX Group SCA (ISIN: LU0472835155). Analyst Dr. Karsten von Blumenthal reiterated his BUY rating and maintained his EUR 9.00 price target.

Abstract
H2APEX once again increased sales significantly in Q2 to €7.4m (Q2/23: €0.7m) but also widened its losses. Net income totalled €-9.1m after €-4.6m in the prior year quarter. The main reasons for the higher losses were a write-down on a plot of land amounting to €2.9m and significantly higher material costs. Due to the ongoing project realisation, the order backlog continued to decline and amounted to €22.9m at the end of Q2. The company is currently participating in several tenders for electrolysis projects and expects to win orders with a cumulative capacity of 100 MW by the end of 2024. We estimate revenue potential of these contracts at around €200m. H2APEX has reduced revenue guidance to the lower half of the original guidance of €35m – €40m. Following the weaker than expected Q2 figures and the lower guidance, we have dialled back our forecasts for the current year. In view of the expected order intake, the progress made in setting up the production of hydrogen storage tanks, and the announcement of the final investment decisions for the first expansion stages (100 MW each) of the major electrolyser projects in Rostock-Laage and Lubmin for Q1/25, we remain optimistic about the company’s further development and largely maintain our forecasts for the coming years. It will be crucial for H2APEX to find strategic partners, who can finance the large-scale projects. An updated DCF model yields an unchanged €9 price target. We confirm our Buy recommendation.