Advertisement
Canada markets closed

  • S&P/TSX

    21,969.24
    +83.86 (+0.38%)
     

  • S&P 500

    5,099.96
    +51.54 (+1.02%)
     

  • DOW

    38,239.66
    +153.86 (+0.40%)
     

  • CAD/USD

    0.7316
    -0.0007 (-0.09%)
     

  • CRUDE OIL

    83.66
    +0.09 (+0.11%)
     

  • Bitcoin CAD

    86,284.38
    -1,903.21 (-2.16%)
     

  • CMC Crypto 200

    1,304.48
    -92.06 (-6.59%)
     

  • GOLD FUTURES

    2,349.60
    +7.10 (+0.30%)
     

  • RUSSELL 2000

    2,002.00
    +20.88 (+1.05%)
     

  • 10-Yr Bond

    4.6690
    -0.0370 (-0.79%)
     

  • NASDAQ

    15,927.90
    +316.14 (+2.03%)
     

  • VOLATILITY

    15.03
    -0.34 (-2.21%)
     

  • FTSE

    8,139.83
    +60.97 (+0.75%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • CAD/EUR

    0.6838
    +0.0017 (+0.25%)
     

Ballard Power Inks $11M Deal to Supply 200 Fuel Cell Engines

Zacks Equity Research
Updated

Ballard Power Systems Inc.  (BLDP) announced that it has entered into a definitive equipment supply agreement with Zhongshan Broad-Ocean Motor in Guangdong Province, China. Per this approximately $11-million deal, Ballard Power will supply and deliver 200 FCveloCity fuel cell engines to Broad-Ocean. These fuel engines will be used to demonstrate clean energy buses and commercial vehicles in major Chinese cities. 

 

The company will manufacture and supply these engines from its operations in British Columbia. The shipments are expected to be completed by the end of 2017. 

 

ADVERTISEMENT

Ballard Extends Ties with Broad-Ocean

 

In Feb 2017, Ballard Power signed a definitive strategic agreement with Broad-Ocean related to technology transfer, licensing and supply arrangements. The $25-million deal includes assembly and sale of FCveloCity 30-kilowatt (kW) and 85kW fuel cell engines in China.

 

In Sep 2016, the two companies signed a Memorandum of Understanding (MoU), wherein Ballard Power will manufacture fuel cell modules for use in buses and commercial vehicles in select cities and regions across China. (Read More: Ballard Power Fortifies Hold in China with Broad-Ocean Deal)

 

In Aug 2016, Broad-Ocean went on to become the largest shareholder of Ballard Power with an investment of $28.3 million in 9.9% of the latter’s common shares. 

 

Ballard Power’s Prospect in China

 

China is tightening its grip on air pollution and working toward its goal of “making the skies blue again”. In doing so, the Chinese government has passed an intense air pollution monitoring program in 28 cities involving about 5,600 government officials. 

 

As China continues to focus on curbing air pollution, Ballard Power’s multiple deals with leading Chinese companies have put it in an advantageous position. These deals are likely to support the company strategies in the country.

 

In Jan 2017, Ballard Power entered into an initial Equipment Sales Agreement with a major Chinese manufacturer of battery electric buses, Zhuhai Yinlong Energy Group. Per the agreement, the company will deliver 10 FCveloCity-MD 30-kilowatt fuel cell engines in 2017 for integration into Yinlong buses that will be deployed in Beijing. All these deals are expected to boost the performance of the company.

 

Future Plan, China to Play a Big Role

 

Ballard Power has secured committed orders worth $87 million for delivery in 2017 plus some significant pipeline of qualified commercial sales opportunities. The company expects growth in Power Products in 2017, backed by increased activity in Heavy Duty Motive and growth in Portable Power. China is expected to play a key role in the prospects of the company.

 

Price Movement

 

In the last three months, shares of Ballard Power gained 48.4%, heavily outperforming the Zacks categorized Electronics - Miscellaneous Components industry’s gain of 8.5%.

 

 

China is expected to lay more emphasis on emission control in the near future. Ballard Power’s increasing presence in the country was reflected well in its share price performance in the last three months.

 

Zacks Rank 

 

Ballard Power carries a Zacks Rank #3 (Hold). 

 

Some better-ranked stocks in the same space are AU Optronics Corp AUO, ZAGG Inc ZAGG and Stoneridge, Inc. SRI. Each of these stocks sports  a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

 

AU Optronics Corp’s Zacks Consensus Estimate for 2017 escalated 60.27% to $1.17 per unit in the last 60 days.

 

ZAGG Inc’s 2017 Zacks Consensus Estimate moved up nearly 60.37% to 85 cents per unit in the last 60 days.

 

Stoneridge, Inc.’s Zacks Consensus Estimate for the full year moved up nearly 8.10% to $1.60 per unit in the last 60 days.

 

Zacks’ Best Private Investment Ideas

 

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

 

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.                                                                

Click here for Zacks' private trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Stoneridge, Inc. (SRI): Free Stock Analysis Report
 
ZAGG Inc (ZAGG): Free Stock Analysis Report
 
AU Optronics Corp (AUO): Free Stock Analysis Report
 
Ballard Power Systems, Inc. (BLDP): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research