Hydrogenone Capital Growth Share Discussion Threads

[brucie5] 08/5/2024 08:17

Positive update, I'd have thought...

[livewireplus] 01/5/2024 07:11

Let us see what 8th May brings as theQ1 2024 NAV and portfolio update is expected to be published on that date......

[amt] 18/4/2024 07:26

Discount looks bonkers but sign of the times

[pj84] 02/4/2024 16:28

Looks like the City of Bradford - West Yorkshire Pension Fund, see value at these depressed levels and have increased their holdings from 5.05% to 6.6% of the company's shares.

[31337 c0d3r] 27/3/2024 20:12

Quite a strong rise today:
HGEN up 7.87%

For comparison:
FTSE 100 up 0.01%
FTSE 250 up 0.17%

[thompson_alan] 25/3/2024 14:46

folks on the BSIF board on this site are saying they recieved a very similar email from AJ Bell re that stock.

[spectoacc] 25/3/2024 14:03

Brilliant:

"First, an apology. We sent you an email this weekend telling you that an investment you hold had failed a fair value assessment. Unfortunately, due to a system error, the email named an incorrect investment.

We’re very sorry for this mistake, and for the confusion it caused. The investment you hold that failed a fair value assessment is: CORDIANT DIGITAL INFRASTRUCTURE LTD."


And yes - I do hold CORD.

[31337 c0d3r] 25/3/2024 08:33

Has the company announced this to shareholders via RNS?

[spectoacc] 25/3/2024 06:49

Coaxed in non-advice language, eg:

"We’ve got an important update for you about an investment you hold – HYDROGENONE CAPITAL GROWTH PLC.

Recently, this investment failed a fair value assessment, carried out by the manager of the investment itself. This means the investment may not offer you good enough value over the long term. "


More concerned that they think I hold it, in two different a/c's.

[31337 c0d3r] 24/3/2024 22:53

Are they not forbidden from providing unsolicited trading advice?

[spectoacc] 24/3/2024 07:46

AJ Bell emailed me over the weekend saying HGEN had failed the Fair Value Assessment, and that I ought to think about selling my holdings.

Which is amusing on several levels, the most obvious being that I don't actually hold currently.

Anyone else get the same email?

[weyweyumfozo] 23/3/2024 14:41

There can't be many people selling at a profit at this level. Or are they deliberately selling at a loss for end or year tax reasons?

[pj84] 22/3/2024 22:41

Either the information being given out by the company is wrong/misleading or at a discount of now more than 58% this is an absolute bargain.

Sunfire is Hydrogenone's largest holding at 20% and is in the top 20 of Global electrolyser manufacturers

And recently they announced that Sunfire had agreed a successful fundraise

In their latest interview on 16 Feb Richard Hulf advised they expected 2 exits of portfolio investments within the next 6 months (listen from 18.48 to 20 minutes).

This is a very quiet thread and I may have missed something but even at this price I feel comfortable holding and am very tempted to top up.

[spectoacc] 20/3/2024 08:55

Threatening that low again. Not sure why I follow this one.

[mabelf1] 09/3/2024 13:05

Thanks, that’s helpful.

[pj84] 09/3/2024 00:09

MabelF1 have a listen from 18.48 to 20 minutes.

[mabelf1] 08/3/2024 08:39

@PJ84 - mind me asking where on the video he mentioned 6 months for the exits rather than 12? Hope that’s right, seems a key trigger to get any momentum here.

[31337 c0d3r] 05/3/2024 17:10

Sounds like their early Sunfire investment was very well timed.

[pj84] 16/2/2024 19:37

Just listened to todays interview with Richard Hulf



At the start it seemed a very rushed rehash of the recent NAV update presentation but once it got to the questions from the interviewer it became much more informative and well worth the time to listen.

At the NAV presentation they had dialed back a bit on the time line for exits saying that advisers had been appointed for 2 investments and they expected those within 12 months but Richard said they expected that within the next 6 months.

There was also detailed discussion on a lot of the investments and 2 of the more recent Gen2 and HH2E which didn't sound like they were the exit investments but it sounded like they had been restricted in recognising value uplifts in the NAV because they could only do so when the FID (final Investment Decision for some major projects within both companies) had happened which again sounded near term.

I was positive after the last presentation but this strengthened my belief that at the current discount to the NAV of 55% this could jump very quickly both because of a big jump in NAV on an exit or FID coupled with a realisation that the model works and this is at an unbelievable discount.

Richard was also asked whether they would use any exits to buyback shares to reduce the discount and he said whilst they wouldn't rule that out, there were too many good opportunities to reinvest that he couldn't see that being likely which I liked.

[pj84] 14/2/2024 19:19

The above article appears to support Hgen's view that there is an unjustified disconnect between the share price and what is happening in the green energy sector.

The following is from the article: -

"...

Bloomberg NEF (BNEF) estimates that capex investment in clean energy was $1.2 trillion in 2021, $1.5 trillion in 2022, and $1.8 trillion in 2023, despite a stiff rise in interest rates and a credit crunch for green start-ups. The total is now over three times as much as upstream capex on oil and gas.

You would scarcely know it from the political noise but the pace of decarbonisation accelerated last year, and has crossed a critical threshold.

The renewable energy roll-out is running near 800 gigawatts (GW) a year, greater than the 700 GW annual increase in power consumption.

The International Energy Agency and Rystad forecast that fossil fuel use in electricity generation will decline this year in absolute terms. From there it is a one-way street.

..."

[pj84] 08/2/2024 19:43

Follow up article in today's Citywire after yesterday's update.



"HydrogenOne: Now is the time for us to deliver as industrial buyers gather
Burgeoning industrial interest in hydrogen energy should provide profitable exits for HydrogenOne Capital Growth this year and help narrow the shares’ 50% discount.

Jamie Colvin

Industrial investors are pumping capital into burgeoning hydrogen projects that could deliver much-needed opportunities this year for HydrogenOne Capital Growth (HGEN) to exit some of its investments at a profit.

Speaking to Citywire off the back of fourth-quarter results, which showed that net asset value (NAV) increased 1.6% to 101.42p as of the end of December, portfolio managers Richard Hulf and JJ Traynor were bullish about the direction the sector was moving in, noting that everything ‘is on track’, even though the shares have plunged to a 50% discount to NAV in the growth selloff.

Investment growth saw the NAV gain 5.8% last year, driven by revenues of £74m across the private portfolio, a 125% increase on the previous year, reflecting the build-out of capacity to meet demand for hydrogen supply chain equipment.

The company said new investment into clean hydrogen totalled $17bn (£13.5bn) in 2023, more than 400% higher than in 2022, with 1.2 gigawatts of green hydrogen production online globally at the end of the year, a 50% increase.


The pair pointed to developments within the £68m Europe-focused portfolio of private companies that reflected increased industrial interest in the sector.

Portfolio holding Elcogen, a manufacturer of fuel cells that makes up 18.4% of assets, attracted €45m (£38m) of investment from HD Hyundai Group member Korea Shipbuilding & Offshore Engineering, funding the construction of a new factory in Estonia to scale up production. The fuel cells will largely be used in shipping.

HiiROC, a UK company that splits methane into carbon and hydrogen, saw venture capital group Cemex increase their investment over the quarter, while former British Gas parent Centrica has continued its trial period. The trial saw the first use of hydrogen in a gas-fired power plant connected to the national grid in the UK.

‘Watch the way industry moves in on hydrogen and starts to scale up,’ said Hulf ‘It’s always been the story. The fund’s focus is how green hydrogen makes its way into the industrial complex, not retail, and we’re on track.’

Richard Hulf and JJ Traynor - HydrogenOne
‘We’re moving into the exits window to prove our NAV,’ the pair said. ‘There’s lots of industrial interest – headlines tend to reflect financial markets, but this is very much an industrial story and industrial investors don’t shout these things from the rooftops.’

The managers were not discouraged by the UK’s government delaying the phasing out of combustion engines from 2030 to 2035, which has reduced the pace of deployment of clean hydrogen in the UK into transport, noting that it continues to support the development of clean hydrogen supply.

In light of this and weak financial markets, HGEN took control of UK hydrogen refuelling provider NanoSun earlier this year and plans to slim down the workforce and rebuild the Lancaster-based business around a lease model rather than sales.

The renamed Swift Hydrogen will be fit for the German market, where it sees good demand, the pair said, adding that they could share more accounting details at the end of the current quarter.

While more than half the holdings are in the UK, the fund is focused on Europe, particularly Germany, the Netherlands and Scandinavia, and the managers plan to expand into the US over the course of the year as they receive more cash from realisations.

Investments in the quarter totalled £1m in two existing portfolio companies, Dutch supply company Strohm and Norwegian green hydrogen project developer Gen2 Energy.

Cash and cash equivalents were £4.7m, with additionally £2.3m of listed hydrogen companies at the end of the quarter, giving a runway of two years, said Traynor.

The shares slipped from 50p to 49.2p yesterday after the update but are up 1.6% to 50.8p this morning. They have halved since their launch near the top of the market in July 2021, but have gained 10% in the past three months as investors were cheered by the prospect of cuts in interest rates this year.

The managers said the recent rally showed that investors were looking at beaten-up growth stocks for a potential recovery. That made it critical they made some exits at a premium this year to prove the model works. ‘Now’s the time to start delivering and we plan to do that this year,’ Hulf said."

[1c3479z] 07/2/2024 22:28

promising some exits 'sometime this year'.
2 unspecified investments consulting advisers.

[pj84] 07/2/2024 21:41

Today's update on the Investor Meet platform is available to view on the recent meetings section of the website it's free to register and well worth a listen.

At the current discount to NAV this is a very comfortable hold for me.