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 increased the price target from EUR 8.40 to EUR 9.00.

The EU has approved H2APEX’s 100 MW electrolyser project, H2ERO. H2APEX has applied for funding of €167m for the project. The exact amount of funding depends on the decision of the German Federal Ministry for Economic Affairs and Climate Action, which H2APEX expects to receive shortly. The large-scale H2ERO project has a planned investment volume of around €213m and is scheduled to go into operation in 2028. APEX plans to produce at least 7,000 t of hydrogen p.a. at the plant. Assuming a hydrogen price of 7 €/kg, this would result in revenues of at least €49m. The approval is a very important milestone for H2APEX on its way to becoming an industrial producer of green hydrogen. The EU has approved a total of 33 projects with a public funding volume of €6.9bn. As a developer of hydrogen infrastructure, H2APEX should also benefit from this and acquire further projects. We see the EU funding decisions as confirmation of our growth forecasts for H2APEX. An updated DCF model yields an increased price target of €9.00 (previously: €8.40). We reiterate our Buy recommendation.