[Click eStock] "Beomhan Fuel Cell, Intensifying Competition in Hydrogen Charging Station Business"

[Asia Economy Reporter Hwang Yoon-joo] NH Investment & Securities stated on the 29th that there are concerns about intensified competition in the hydrogen charging station business of Beomhan Fuel Cell. They did not disclose an investment opinion or target price.

Jeong Yeon-seung, a researcher at NH Investment & Securities, analyzed, "In the case of hydrogen charging stations, a decline in expected profitability is inevitable due to intensified competition."

As of November 2022, there are about 208 hydrogen charging stations in South Korea. This is more than 30% below the original target of 310 stations. This indicates that competition among operators is intensifying.

However, Beomhan Fuel Cell is evaluated to have excellent cost competitiveness. Researcher Jeong stated, "The air compressor, which accounts for 50% of the component cost of hydrogen charging stations, has been localized by the parent company Beomhan Industry," and added, "Despite the decline in order prices for hydrogen charging stations, profit generation is possible based on cost competitiveness."

Another advantage is the expansion of the business area through orders for hydrogen charging stations for commercial vehicles, which have relatively higher unit prices (such as the order for the Jinhae New Port cargo truck hydrogen charging station). The direction for external growth is clear through the expansion of submarine and building fuel cell businesses and the increase in hydrogen charging station orders.

Researcher Jeong analyzed, "However, it will take some time to expand the localization business and the building fuel cell market, and considering the expected decline in profitability of hydrogen charging stations, the pace of profit improvement will appear gradually."

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