Johnson Matthey (JMPLY) Investment to Boost China Hydrogen Market
Johnson Matthey Plc JMPLY, a leader in sustainable technologies, has announced a significant investment agreement with the Jiading District in Shanghai, China, aimed at accelerating the growth of the hydrogen economy in the country. This agreement marks a milestone for Johnson Matthey as it expands its footprint in the three major hydrogen markets of the United States, Europe and China.
The agreement outlines plans to construct a state-of-the-art catalyst coated membrane (CCM) production facility. This facility will be dedicated to producing CCMs for multiple proton exchange membrane (PEM) fuel cell applications and PEM electrolysers. With an initial capacity of up to 5GW, the facility will be located in Shanghai's Jiading district, a designated Hydrogen industrial zone, and is expected to commence operations in 2025. The facility will also have the potential for future expansion to meet growing customer demand.
The investment is part of Johnson Matthey’s £1.1 billion (roughly $1.4 billion) global stated capital expenditure for the three years leading up to 2024-25 and will benefit from government support and incentives.
The establishment of the new production facility would enable Johnson Matthey to locally supply existing Chinese and international customers with CCMs. Moreover, the company has received strong interest from a diverse range of customers in both fuel cell and renewable hydrogen technologies. This strategic move positions JMPLY to cater to the growing demand for fuel cell electric vehicles in China, where the government aims to have one million hydrogen-powered vehicles on the road by 2030.
Johnson Matthey's long-standing presence in China, with six advanced manufacturing facilities, highlights its commitment to the country's sustainable growth. The company is recognized as a leading auto catalyst producer, platinum group metals trader and refiner in China. It holds a prominent position in the syngas and hydrogen fuel cell sectors.
The investment in China's hydrogen economy through the establishment of a cutting-edge CCM production facility strengthens Johnson Matthey's position in the global sustainable technology market. By supplying locally produced CCMs to Chinese and international customers and capitalizing on the strong interest in fuel cell and renewable hydrogen technologies, JMPLY is poised for growth while contributing to China's goal of carbon neutrality by 2060.
Johnson Matthey’s shares are down 6.2% in the past year against the 18.2% rise of its industry. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 8.9% downward in the past 60 days.
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Zacks Rank & Key Picks
Johnson Matthey currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include PPG Industries, Inc. PPG, Carpenter Technology Corporation CRS and Silvercorp Metals Inc. SVM.
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The Zacks Consensus Estimate for current-year earnings for CRS is currently pegged at $1.04, implying year-over-year growth of 198.1%. Carpenter Technology currently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has a trailing four-quarter earnings surprise of roughly 30.9%, on average. The stock has gained around 111% in a year.
Silvercorp Metals currently carries a Zacks Rank #1. The Zacks Consensus Estimate for SVM’s current-year earnings has been revised 3.8% upward in the past 60 days.
The consensus estimate for current fiscal-year earnings for Silvercorp is currently pegged at 27 cents, suggesting year-over-year growth of 28.6%. SVM shares have risen roughly 33% in the past year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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