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.

In the first quarter, H2APEX increased revenue more than six-fold y/y to €10.1m and exceeded our forecast. This shows that the company is making good progress in realising the hydrogen projects it is developing and building for its customers. However, gross profit was only €236k (gross margin: 2.6%) and has therefore fallen far short of our expectations. Personnel and structural expansion have increased the cost base (personnel & OPEX) in Q1/24 to ca. €4.3m. EBIT totalled €-4.6m after €-4.0m in the same quarter of the previous year. Overall, H2APEX is well on track to achieve sales guidance of €35m – €40m. The development of the own hydrogen production facilities in Rostock-Laage (100 MW) and Lubmin (up to 600 MW) and the expansion of hydrogen storage production proceeded as planned in Q1. As H2APEX did not win any new projects in Q1, the order backlog declined from €34m at the end of 2023 to €27.3m. We have revised our earnings forecasts following the Q1 figures. An updated DCF model yields an unchanged €9 price target. We confirm our Buy recommendation.