BYD, RBLX, FTCH & VUZI
1.) Doosan Fuel Cell
Doosan is the leading fuel cell manufacturer in Korea, commanding a 70% domestic market share, generating 100% of revenue from sales and maintenance of Phosphoric Acid Fuel Cell (PAFC) for power / heat generation. In South Korean, there are two players in the stationary generation fuel cell market, Doosan and SK Bloom Energy.
Doosan Fuel Cell’s (DFC) 3Q21 result missed as pending regulation led to delays in customer orders. Share price fell by 8% after Doosan missed consensus earnings. Doosan reported revenue of W122.7bnm, below Bloomberg consensus revenue of W131.9bn. The company’s operating margin was 6.2%, below consensus estimates at 8.3% and net profit margin was 5.5%, also below consensus estimates of 6.3%.
Management reiterated its full year order and revenue guidance, which implies 80% of its full year orders and 50% of revenue being achieved in 4Q21. Doosan Fuel Cell reported 3Q revenue/OP of W123B/W8B, implying 25MW of product delivery during the quarter. The company maintained its full year order/revenue guidance of 142MW/W526B, which implies 4Q21 order/revenue of 114MW/W276B – 80%/50% of full year target. While aggressive, management adds that there are projects in the final stage of discussion with the government.
2.) BYD
BYD posted 3Q21 results with revenue grew by 22% yoy to CNY53.6bn on the back of strong auto and mobile segment growth. Gross margin came in at 12.2%, down by 8.9pp yoy but up 1.2pp qoq due to increase in raw material prices from the battery side. Net profit reported was CNY1.3bn, down by 28% yoy but up 36% qoq. 9M21’s net profit makes up 51.8% of consensus estimates.
While 3Q21 net profit is weaker, there are positive catalysts including the 10GWh LFP battery order from Tesla. Moving forward, we expect Tesla to place more LFP battery orders with BYD. Note that the global LFP battery market is highly concentrated with only Chinese suppliers at the moment where the top 3 players take up 90% of global market share (CATL 45%, BYD 32% and Gotion 12%). BYD has also gotten approval to spin off its semiconductor unit.
3.) Ballard
Ballard’s share price increased by 30.7% since early October. The company reported 3Q result few days ago and total revenue was $25.2 million in the quarter, down 2% year-over-year. The slight decrease was driven by a reduction in lower Heavy-Duty Motive and Technology Solutions revenue in the quarter, largely offset by increased revenue in Material Handling and Backup Power. Adjusted EBITDA was ($23.1) million, compared to ($7.7) million in Q3 2020, a result of the decrease in gross margin and increase in cash operating costs. EPS for the quarter was -$0.10, missing consensus estimates at -$0.06.
However, the company reported approximately $20.5 million of new orders in Q3, resulting in an Order Backlog of approximately $108.5 million at end-Q3. The company also announced orders for a total of 40 FCmoveTM-HD (70kW) modules for planned deployment in hydrogen fuel cell electric buses ("FCEB") across Europe in 2022.
4.)Roblox (RBLX)
Shares of Roblox (RBLX) increased by 42% on Tuesday after reporting strong third quarter earnings, with revenue up 102% year-over-year (YoY) and average daily active users up 31% YoY to 47.3 million. Singular maintains high conviction in Roblox's ability to attract developers and end users. Despite post-pandemic reopening dynamics, we believe user-oriented gaming platforms will continue to benefit from sticky users.
Roblox is an online entertainment platform that allows users to engage with a variety of virtual worlds and games that independent developers create and offer through the platform itself.
5.) Farfetch (FTCH)
Shares of Farfetch (FTCH) traded up 17% today after the company confirmed it is in discussions with luxury conglomerate Richemont to potentially expand their Luxury New Retail partnership. Potential directions include Farfetch powering the ecommerce backend of Richemont's brands and YOOX NET-A-PORTER, and the participation of Richemont's brands in Farfetch's marketplace. We believe Richemont's openness to collaborate further is a testament to Farfetch's technological edge in e-concession and logistics optimization.
In November 2020, Farfetch entered into a joint partnership with Richemont and Alibaba. Alibaba and Richemont jointly invest $1.1 billion in Farfetch, taking a combined 25% stake in Farfetch's Chinese ventures.
Farfetch provides an online luxury shopping platform, and we believe it is a leader in digitizing the luxury experience around the world.
6.) Vuzix (VUZI)
Shares of Vuzix (VUZI) traded up 15% today in response to continued bullish sentiment from investors. Vuzix reported third quarter earnings on Monday and, although it missed Wall Street expectations for revenue, management reiterated confidence in an acceleration in sequential revenue growth for the fourth quarter. Vuzix offers AR display and computing glasses for consumer and enterprise markets globally.
Vuzix continued to make good commercial progress with an expanding number of Fortune 100 firms across multiple industries that are looking to standardize on Vuzix Smart Glasses throughout their respective operations to support training, logistics and supply chain use cases.