Hydrogen Car Stocks That Didn't Last Even a Year

[Asia Economy Reporter Koh Hyung-kwang] Hydrogen car-related stocks are struggling to find upward momentum. Although the government has shown strong determination to revitalize the hydrogen economy, including hydrogen cars, and related stocks experienced a short-term surge, they have fallen back within less than a year. It is expected that unless additional government policies are introduced, it will be difficult to reverse this trend.

According to the Korea Exchange on the 3rd, Unique, a hydrogen car parts partner of Hyundai Motor Company, closed at 6,180 won, up 0.4% from the previous day. Compared to the peak of 13,900 won on January 18 last year, this represents a 55% decline.

Unique began to surge sharply after Hyundai announced its hydrogen car roadmap on December 11, 2018, soaring 280% within a month. Afterward, it started to decline and slid to 4,870 won in August last year, a level similar to before the roadmap announcement. The stock price plummeted as the effect of the hydrogen car policy wore off.

Other stocks grouped under the hydrogen car theme are in a similar situation. EM Korea, whose subsidiary operates hydrogen charging stations, soared to 11,150 won in January last year but dropped to 3,800 won by the end of last year and recently has been forming around the 4,300 won level.

NK, which manufactures and supplies hydrogen tanks, saw its stock price more than double shortly after the roadmap announcement, but the closing price yesterday was 1,160 won, the same as before the announcement. Neuros, which produces air compressors used in hydrogen cars, rose to 10,800 won early last year but closed at 4,045 won yesterday, down more than 50%. Compared to before the roadmap announcement (4,140 won), the stock price actually fell.

After Hyundai announced its hydrogen car roadmap and the government revealed a large-scale support plan for the hydrogen car industry, related stocks experienced a short-term surge but have since shown a downward trend due to a lack of momentum.

Since commercializing hydrogen cars will take quite some time, the prevailing view is that a short-term rebound will be difficult. Cho Soo-hong, a researcher at NH Investment & Securities, said, "The burden of infrastructure construction costs such as hydrogen charging stations is pointed out as a disadvantage," adding, "Currently, hydrogen car development is in the initial stage, and a full-fledged market formation is expected around 2025."

This content was produced with the assistance of AI translation services.