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.

H2APEX has presented its annual report. With sales of €15.3m, the company achieved sales guidance and our forecast. However, the operating loss of €-22.2m was significantly higher than we had expected (FBe: €-12.4m). This was due to higher material costs, OPEX and depreciation & amortisation. The net result totalled €-24.7m. The order backlog at the end of the year was €34m. H2APEX expects sales of €35m – €40m for the current year. The company has not provided any earnings guidance. In view of the order backlog in the project development area, initial expected sales of hydrogen storage systems and revenues from the sale of hydrogen, we are maintaining our sales forecast of €39.8m. The higher than expected costs in the past year are mainly due to one-off effects. We have revised our estimates for 2024, but our EBIT forecast remains unchanged. Due to an expected lower gross margin and higher depreciation & amortisation, we have adjusted our estimates for 2025E & 2026E. An updated DCF model yields an unchanged €9 price target. We confirm our Buy recommendation.