The company reported its revenue fell by 28% last year, led by a nearly 50% drop for its core hydrogen fuel cells
Key Takeaways:
- Shanghai Refire’s revenue fell last year, reflecting volatile conditions as China’s hydrogen energy sector remains in its early stages of development
- The hydrogen fuel cell maker’s stock has risen nearly 30% since its IPO and now trades at a high valuation multiple, mostly fueled by strong government support
When it comes to new energy, there’s something about being in China that seems to charge up a company’s stock price. Hydrogen fuel cell maker Shanghai Refire Group Ltd. (2570.HK) nicely illustrates this principle, with a stock that trades at a lofty price-to-sales (P/S) multiple of 19 despite reporting slumping revenue in its latest financial report released last Friday.
It’s no secret that China provides huge state support to new energy companies, aiming to take the global lead in sectors like solar and wind energy, new energy vehicles and battery technology that are likely to soon replace traditional gas-powered vehicles and coal-fired power. Hydrogen falls into that category, as it can be used to power vehicles and is also showing some potential for electricity generation.
But the power source has traveled a bumpy road in the West, largely because the type of hydrogen required to power such systems is far more expensive than the costs associated with more traditional power sources. Despite those challenges, China has determined the technology is worth pursuing and is throwing its support behind it, both in the form of government incentives and also support from major state-owned enterprises (SOEs).
In a major development on that front, Refire said that last November hydrogen was officially recognized as an energy source under the Energy Law of the People’s Republic of China, giving it equal status alongside such traditional giants as oil, coal, natural gas and nuclear. “This decision clarified hydrogen’s strategic role within the …
Full story available on Benzinga.com
The company reported its revenue fell by 28% last year, led by a nearly 50% drop for its core hydrogen fuel cells
Key Takeaways:
- Shanghai Refire’s revenue fell last year, reflecting volatile conditions as China’s hydrogen energy sector remains in its early stages of development
- The hydrogen fuel cell maker’s stock has risen nearly 30% since its IPO and now trades at a high valuation multiple, mostly fueled by strong government support
When it comes to new energy, there’s something about being in China that seems to charge up a company’s stock price. Hydrogen fuel cell maker Shanghai Refire Group Ltd. (2570.HK) nicely illustrates this principle, with a stock that trades at a lofty price-to-sales (P/S) multiple of 19 despite reporting slumping revenue in its latest financial report released last Friday.
It’s no secret that China provides huge state support to new energy companies, aiming to take the global lead in sectors like solar and wind energy, new energy vehicles and battery technology that are likely to soon replace traditional gas-powered vehicles and coal-fired power. Hydrogen falls into that category, as it can be used to power vehicles and is also showing some potential for electricity generation.
But the power source has traveled a bumpy road in the West, largely because the type of hydrogen required to power such systems is far more expensive than the costs associated with more traditional power sources. Despite those challenges, China has determined the technology is worth pursuing and is throwing its support behind it, both in the form of government incentives and also support from major state-owned enterprises (SOEs).
In a major development on that front, Refire said that last November hydrogen was officially recognized as an energy source under the Energy Law of the People’s Republic of China, giving it equal status alongside such traditional giants as oil, coal, natural gas and nuclear. “This decision clarified hydrogen’s strategic role within the …
Full story available on Benzinga.com
The company reported its revenue fell by 28% last year, led by a nearly 50% drop for its core hydrogen fuel cells
Key Takeaways:
Shanghai Refire’s revenue fell last year, reflecting volatile conditions as China’s hydrogen energy sector remains in its early stages of development
The hydrogen fuel cell maker’s stock has risen nearly 30% since its IPO and now trades at a high valuation multiple, mostly fueled by strong government support
When it comes to new energy, there’s something about being in China that seems to charge up a company’s stock price. Hydrogen fuel cell maker Shanghai Refire Group Ltd. (2570.HK) nicely illustrates this principle, with a stock that trades at a lofty price-to-sales (P/S) multiple of 19 despite reporting slumping revenue in its latest financial report released last Friday.
It’s no secret that China provides huge state support to new energy companies, aiming to take the global lead in sectors like solar and wind energy, new energy vehicles and battery technology that are likely to soon replace traditional gas-powered vehicles and coal-fired power. Hydrogen falls into that category, as it can be used to power vehicles and is also showing some potential for electricity generation.
But the power source has traveled a bumpy road in the West, largely because the type of hydrogen required to power such systems is far more expensive than the costs associated with more traditional power sources. Despite those challenges, China has determined the technology is worth pursuing and is throwing its support behind it, both in the form of government incentives and also support from major state-owned enterprises (SOEs).
In a major development on that front, Refire said that last November hydrogen was officially recognized as an energy source under the Energy Law of the People’s Republic of China, giving it equal status alongside such traditional giants as oil, coal, natural gas and nuclear. “This decision clarified hydrogen’s strategic role within the …Full story available on Benzinga.com Read MoreAsia, contributors, Equities, Commodities, IPOs, Opinion, Equities, Asia, Commodities, IPOs, Opinion, Benzinga IPOs
