On December 6, Reshape Energy (2570.HK) officially listed on the main board of the Hong Kong Stock Exchange, with its stock price rising approximately 1.3% on the first day, and a total market value exceeding 12.8 billion Hong Kong dollars. As a leader in hydrogen fuel cell systems, the listing of Reshape Energy naturally attracted a lot of attention.

Before its listing, the company received investments from Sinopec, the National Manufacturing Upgrade Transformation Fund, Yutong Group, FAW Jiefang Group, Sequoia Capital, and others, highlighting the market's high attention and recognition of the company's value.

In fact, from both an industry and company perspective, it is evident that Reshape Energy has a clear long-term growth logic. The company backs the blue ocean market, has secured a leading position, and possesses significant competitive barriers, hence it holds the tags of rarity and growth in the Hong Kong stock market.

The official listing marks a brand new starting point, and Reshape Energy is expected to embark on a new path of value growth.

A benchmark enterprise in the hydrogen energy industry, its growth logic continues to be validated.

Looking back at this year, the IPO market in Hong Kong has noticeably rebounded, with IPO fundraising in the first 11 months increasing by 80% year-on-year. From a policy perspective, Hong Kong is accelerating the listing of quality enterprises and star companies, enhancing the overall activity and attractiveness of the market, thereby further boosting investor confidence.

Therefore, this smooth listing is also an affirmation of Reshape Energy's business prospects, performance data, and other aspects.

The prospectus shows that from 2021 to 2023, the company's revenues were 0.524 billion yuan, 0.605 billion yuan, and 0.885 billion yuan respectively; gross profits were 61.79 million yuan, 49.82 million yuan, and 0.18 billion yuan; gross margins were 11.8%, 8.2%, and 20.1%, displaying an overall upward trend.

In 2023, based on the total sales output power of fuel cell systems, the company ranks first in the hydrogen fuel cell market in China, with a market share of 23.8%. Among them, heavy-duty trucks are the largest application area, and according to the total sales output power of hydrogen fuel cell systems installed in heavy-duty trucks in 2023, the company ranks first in the hydrogen fuel cell market in China, with a market share reaching 42.4%.

This means that as market scale continues to grow, Reshaping Energy, as a leader, possesses a broader customer base, stronger market influence, and a more solid leading position, laying a solid foundation for capturing industry development dividends. This also confirms that the company has good growth logic.

The core of being able to have this confidence comes from the company's product strength, technological innovation, and forward-looking strategic layout.

Reshaping Energy has solved several core technical challenges of high-power fuel cells in terms of high reliability, long life, environmental adaptability, and economy, making its products have a competitive advantage in the industry, and more attractive to downstream customers. Combined with market trends, the company is expected to seize the low-price hydrogen demand from non-demonstration cities in the future, better apply it to the mainstream scenario of hydrogen fuel heavy-duty trucks, and the company's products will usher in further volume growth.

In terms of strategic layout, the company extends to the upstream hydrogen energy equipment field, developing both PEM (Proton Exchange Membrane) and ALK (Alkaline) hydrogen production routes. At the same time, it continuously explores hydrogen energy industry solutions, previously implementing the integrated demonstration project of producing, storing, and transporting 0.1 million tons of green hydrogen annually in the Sun Mountain of Ningxia, which will further expand the company's influence and help the hydrogen energy industry run through innovative business models.

In addition, the company accelerates its overseas expansion to open up a second growth curve, expected to capture the momentum of global hydrogen energy industry development. In 2023, revenue from overseas grew by as much as 170% year-on-year, forming a trend of rapid growth.

Therefore, based on the company's current leading position and competitive barriers, with differentiated advantages and playing an important role in promoting the development of the hydrogen energy industry, from an investor's perspective, Reshaping Energy is a rare industry example. This undoubtedly brings great attractiveness to market investors.

The listing has encountered a golden window period, and the value potential is expected to be gradually released.

The current excellent listing window for Hong Kong stocks presents a rare opportunity to reshape the value potential of energy.

On one hand, after experiencing a bull market, Hong Kong stocks have entered a correction phase, building momentum for a new trend change. In terms of valuation, the hang seng index's pe is 8.78, indicating that compared to the past decade, this indicator is at a low level, and the pb is only 1.66. It is evident that Hong Kong stocks are still undervalued, highlighting the cost-performance ratio for mid to long-term allocation.

Institutions predict that a series of policies may be introduced within the next six months to stimulate the economic fundamentals, providing support for the Hong Kong stock market, and the improvement in macroeconomic conditions is expected to attract more long-term active funds back.

Specifically looking at the hydrogen energy sector, it has been quiet for some time after the market in the first half of this year, but sector sentiment is gradually warming up.

The year 2024 is a preparation year for the hydrogen energy industry, with top-level policy guidelines and local policy demonstrations already providing a solid foundation for the industry's explosion next year. This year has also seen many green hydrogen integrated projects begin to take shape, providing practical support for more projects in the future. Additionally, the industry chain's cost is decreasing, and green hydrogen is gradually approaching application parity; for example, in fuel cell heavy trucks and specific scenarios like on-site ammonia and methanol consumption, preliminary economic feasibility has been achieved.

Therefore, driven by the above positive factors, green hydrogen and commercial vehicles will see an increase in volume, and reshaping energy will gain beta opportunities granted by the market as the sector heats up.

On the other hand, the company will usher in accelerated development through the capital markets. The company's IPO is expected to raise a net amount of about 0.666 billion Hong Kong dollars, with approximately 74.5% allocated for research and development activities and capacity expansion of hydrogen fuel cell systems; about 15.3% will be used for funding the capacity expansion of hydrogen energy equipment; approximately 7.7% will be dedicated to overseas market business expansion; and about 2.5% will be used for working capital and general company purposes.

It is evident that the company has a clear development direction and specific plans for the future. After a successful listing, the company will be able to accelerate its business expansion and the layout of its industry chain both upstream and downstream, increasing its market share in overseas markets. As a result, the company will accelerate the release of scale effects and solidify its leading advantage.

As an investor, there is an expectation for reshaping the future of energy performance growth and intrinsic value enhancement.

Conclusion:

Overall, reshaping energy as an investment symbol has sufficient scale and good growth potential. After being listed on the main board, more resources will be invested in capacity and technological innovation, taking its own development to the next level.

Hydrogen energy, as a strategic xinxingchanye, is currently still in the early stage of commercialization. However, in the long term, hydrogen energy has the potential for low-carbon energy transformation and cross-industry applications. Thus, both from a vertical timeline perspective and a horizontal perspective of industry pull, the development prospects for hydrogen energy are broad and certain, representing an industry with long-term growth.

Therefore, the hydrogen energy industry and high-quality hydrogen energy enterprises represented by reshaping energy still have ample growth cycles and potential for growth in the future, making them worthy of investors' patient companionship.