First Berlin Equity Research on 17/08/2022 initiated coverage on Clean Logistics SE (ISIN: DE000A1YDAZ7/ Bloomberg: SD1 GR). Analyst Dr. Karsten von Blumenthal placed an ADD rating on the stock, with a EUR 19.00 price target.

Clean Logistics SE (CL) manufactures commercial vehicles (heavy trucks and buses) with zero-emission drive systems. The basis for this is an innovative drive concept developed in-house consisting of a hydrogen fuel cell, battery, electric axle motor, and proprietary control software. In the future, CL also plans to use cryogas technology for the hydrogen tanks, which should enable heavy trucks to have a range of 1,000 km thanks to its high storage density. CL has developed a conversion concept that converts commercial vehicle drives from diesel to hydrogen. Following the acquisition of Dutch truck manufacturer GINAF, CL will also act as an OEM for zero-emission commercial vehicles. In August, CL closed a framework contract with GP Joule to supply 5,000 hydrogen trucks for the period 2023-2027. The total volume of the contract is in the low single-digit billion euro range and represents nothing less than CL’s breakthrough into the zero-emission truck market. Delivery of the first vehicles is scheduled to start in Q3/23. This large framework agreement alone secures high-volume sales of zero-emission trucks and associated cost reductions in component procurement for CL. We expect sales to grow strongly over the years. After the acquisition of GINAF, we assume sales of about €6m in 2022 and ca. €57m in 2023. For 2024, we assume ca. 500 conversions and a turnover of €218m. Assuming 1,400 conversions in 2025, this results in a turnover of €467m. We expect CL to generate positive operating results from 2025 onwards (2025 EBIT: €11.4m). Using a DCF model, we see fair value at €19 per share. We initiate coverage with an Add rating.