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 decreased the price target from EUR 9.00 to EUR 8.00.

Abstract
H2APEX has reported 9M figures and lowered 2024 revenue guidance. Although the company showed the strongest quarterly revenue (Q3: €7.6m) so far this year, management has trimmed 2024 sales guidance from €35m to €40m to at least €28m due to delivery problems in the project business. These lead to longer project durations and thus to a shift in sales to 2025. We have lowered our sales forecast for 2024E to €28.5m and therefore only expect sales of €3.3m for Q4. In the first nine months, H2APEX increased sales almost sevenfold y/y from €3.7m to €25.2m. As the award dates for the tenders in which H2APEX is participating are being pushed back, we no longer expect the company to be awarded contracts for electrolysis plants totalling more than 100 MW this year. The order backlog amounted to €15.3m as of 30 September. The lower order backlog and the delays in tenders have prompted us to lower our forecasts for 2025E and subsequent years. An updated DCF model yields a new price target of €8 (previously: €9). We confirm our Buy recommendation.