Hong Kong Stock Concept Tracking | Policies promote high-quality development of the hydrogen energy industry Grasp the two major directions of integrated green hydrogen projects and fuel cell vehicles (including concept stocks)

The Ministry of Industry and Information Technology, the National Development and Reform Commission, and the National Energy Administration recently jointly released the implementation plan for accelerating the application of clean and low-carbon hydrogen in the industrial sector. Prior to this, the U.S. Department of the Treasury released the final version of the hydrogen energy subsidy policy, meeting the core demands of the energy industry, including extending the loose power matching policy until 2030, allowing nuclear reactors, specific state electricity, methane power generation, and other technologies to be included in the scope of hydrogen energy production subsidies. According to Guotai Junan's research report: 1) As industrialization accelerates, the consumption of fossil fuels is exacerbating global warming and extreme climate issues, driving the development of renewable clean energy as a global trend. Hydrogen energy, as a renewable and zero-emission energy source, is seen as the "ultimate energy source" of the 21st century, with wide applications in multiple industries and becoming a key direction for global energy transition. In the current context, the development of hydrogen energy has become a consensus among major global economies. According to statistics from the International Energy Agency, as of September 2024, more than 50 countries and regions have issued hydrogen energy strategies. 2) Thanks to the support of hydrogen energy policies by various governments and the emphasis of enterprises on the development of green energy transformation, coupled with the continuous emergence of new entrants, the electrolysis equipment market is maintaining extremely fast growth. 3) In the future, as the hydrogen energy strategies of various countries continue to advance, fuel cell technology, storage and transportation technology progress, and hydrogen refueling station infrastructure continues to improve, global sales of fuel cell vehicles will continue to grow. Sinolink's research believes that the industry will welcome a year of large-scale production under the "14th Five-Year Plan" target, with production doubling to drive the industry chain towards commercialization. Through policy promotion, demonstration effects, and cost reduction in the industry chain, the industry will continue to see continuous large-scale production, focusing on integrated green hydrogen projects and fuel cell vehicles. Hydrogen energy is an important lever for achieving zero carbon emissions. During the accelerated promotion of the upstream, middle, and downstream sectors, investment opportunities in core components such as electrolytic cells, hydrogen pipelines, compressors, hydrogen storage tanks, and fuel cell systems are expected to be promising. Hong Kong-listed companies related to the hydrogen energy industry chain: JINGCHENG MAC (00187): The main business of JINGCHENG MAC Limited is in the gas storage and transportation sector and smart manufacturing sector. The company's main products include LNG cylinders for vehicles, CNG cylinders for vehicles, etc. GUOFUHEE (02582): GUOFUHEE is a leading hydrogen energy storage and transportation equipment manufacturer in China. The company researches and manufactures the entire value chain of hydrogen energy core equipment for production, storage, transportation, refueling, and use. The company focuses on China's transportation sector, developing and manufacturing core components of hydrogen fuel cell vehicles (i.e., on-board high-pressure hydrogen supply systems) and equipment for hydrogen transportation infrastructure (i.e., refueling stations). According to the sales volume of domestic on-board high-pressure hydrogen supply systems in 2023, the company ranks first with a market share of 30.4%. SINOSYNERGY (09663): According to SINOSYNERGY's mid-term report for 2024, the company achieved revenues of approximately 133 million yuan in the first half of the year, a decrease of 37.3% year-on-year. SINOSYNERGY stated that the decrease in revenue was mainly due to the fact that the hydrogen fuel cell industry in which the group operates is still in the early stages of commercialization, leading to certain fluctuations in operating performance. In the first half of the year, the company's new products were in the mass production introduction stage, and the release of production capacity required a transition period, resulting in a decrease in sales of hydrogen fuel cell systems. SINOHYTEC (02402): SINOHYTEC announced that the company plans to jointly increase its investment in the joint venture company Huafeng Fuel Cell Co., Ltd. with Toyota Motor Corporation by a total of 1.9 billion yen (approximately RMB 89.6135 million), with the company's planned additional investment amount at 950 million yen (approximately RMB 44.8068 million). After this capital increase, Huafeng Fuel's registered capital will increase from 4.5 billion yen to 6.4 billion yen, and SINOHYTEC's shareholding in Huafeng Fuel will remain unchanged at 50%. Analysts believe that this increase in investment in Huafeng Fuel by SINOHYTEC signifies that the company will continue to strengthen its cooperation with the international giant Toyota, deepen cooperation, and promote the development and commercial application of the hydrogen energy industry. In the future, Huafeng Fuel will have more capabilities to participate in the application for and bidding of large projects in the field of hydrogen energy, and is expected to achieve more breakthroughs and results in the hydrogen energy field. REFIRE (02570): Public information shows that REFIRE's main business is in hydrogen fuel cell systems, hydrogen energy equipment, etc. In this IPO, Jiujiang Dingchuang, a subsidiary of Jiujiang State-owned Assets Supervision and Administration Commission, subscribed to approximately HK$300 million as a cornerstone investor. REFIRE focuses on the research, development, production, and sales of hydrogen fuel cell systems, not only independently developing and mass-producing core components of hydrogen fuel cells, such as cell stacks, membrane electrodes, and bipolar plates, but also continuously investing in hydrogen energy technology to form a complete industrial chain from hydrogen production to hydrogen application. CIMC ENRIC (03899): The hydrogen energy industry will experience an explosive growth, bringing opportunities for hydrogen cylinders in storage, transportation, and application. The company's main products are various types of hydrogen cylinders along the industrial chain, with the main drivers being: 1) the construction of large-scale green hydrogen bases and the separation of hydrogen production and utilization ends, driving the large-scale application of hydrogen storage spheres and hydrogen cylinders; 2) policy support and cost reduction driving the mass production of fuel cell vehicles, leading to high growth in demand for on-board hydrogen storage cylinders. The company is a market leader in high-pressure transportation vehicles and station-use hydrogen cylinders, with a market share of over 40%. As hydrogen energy policies are implemented and commercial models mature, the company's key position in the industry chain will fully benefit. New orders continue to grow, reaching 450 million yuan in the first half of 2024, a year-on-year increase of 29.3%. In the future, the hydrogen energy business will become an important driver of performance growth, following LNG.