Hydrogenics Corporation (USA) (NASDAQ:HYGS) announced that it has been selected by one of its certified integrator partners in China for a fuel cell order to power buses throughout a number of major metropolitan areas. The initial size of the contract is estimated to be worth $4 million, although significant follow-on awards are anticipated in 2017.
Additional terms were not disclosed. This latest win builds on Hydrogenics’ expansion into China, first announced in 2015, that includes partnering with a number of electric vehicle integrators to bring fuel cell and fueling station technology to the country. The Chinese market is growing rapidly due to the dedication of the Chinese government to combat smog and global warming.
“We are very pleased to announce this latest award in China, where we are seeing the fruits of our labor as the country continues to aggressively pursue initiatives to improve air quality,” said Hydrogenics’ CEO Daryl Wilson. “One of our certified integrator partners will purchase a large quantity of fuel cell power modules for their end customers, who will use them in buses of various sizes and designs. The country’s leadership continues to see the value of zero-emission vehicles as part of an overall plan to dramatically reduce air pollution nationwide, and fuel cell incentives are being offered at a level equivalent to batteries. In addition, fuel cells offer a greater range of mobility and more rapid fueling than batteries, last longer, and can be an integral part of a carbon neutral program if sustainable resources are also used to generate the hydrogen fuel itself. Hydrogenics remains a compelling choice given our technology leadership in heavy-duty fuel cells as well as the scope of our applications – which span from energy storage to large-scale hydrogen-based energy production. Our orders in China and expanding presence there lay the foundation for even larger contracts in the quarters to come; I can clearly say that 2017 will be the biggest year ever for us in China but, again, remains the tip of the iceberg for this tremendous market.” (Original Source)
Shares of Hydrogenics closed yesterday at $4.35, down $0.10 or -2.25%. HYGS has a 1-year high of $10.33 and a 1-year low of $3.90. The stock’s 50-day moving average is $4.66 and its 200-day moving average is $5.90.
On the ratings front, Roth Capital analyst Craig Irwin reiterated a Buy rating on HYGS, with a price target of $11, in a report issued on November 8. The current price target implies an upside of 153% from current levels. According to TipRanks.com, Irwin has a yearly average loss of 6.5%, a 37% success rate, and is ranked #4069 out of 4291 analysts.
Hydrogenics Corp. designs, develops and manufactures hydrogen generation and fuel cell products based on water electrolysis technology and proton exchange membrane technology. It operates through 2 segments: OnSite Generation and Power Systems. The OnSite Generation segment is based in Oevel, Belgium and develops products for industrial gas, hydrogen fueling and renewable energy storage markets. The Power Systems segment is based in Mississauga, Canada, with a satellite facility in Gladbeck, Germany, and develops products for energy storage, stationary and motive power applications.