Original-Research dynaCERT Inc (von GBC AG): BUY
Original-Research: dynaCERT Inc - von GBC AG
Einstufung von GBC AG zu dynaCERT Inc
Unternehmen: dynaCERT Inc
Anlass der Studie: Research Report (Initiation of Coverage) Empfehlung: BUY
Kursziel: 1.90 CAD
Kursziel auf Sicht von: 31.12.2020
Letzte Ratingänderung: -
Analyst: Julien Desrosiers, Matthias Greiffenberger
'Unique product with no competing technologies in a total market valued at over USD 6 Trillion. Massive sales revenues expected in the next few years. Worldwide distribution network established.
International orders and MOU signed. Tested, Certified and Patented technology with high net margin.'
dynaCERT is a leading hydrogen technology company developing carbon emissions reduction and fuel economy solutions for diesel-powered combustion engines. The company has proven, proprietary and patented technologies. Their disruptive solution incorporates emissions reduction, fuel savings, carbon credit monetizing solutions as well as fleet management software, all in one product.
The company addresses the needs to reduce NOx, COx and TCH emissions in order to comply with new-stage V environmental regulations with their HydraGEN TM line of products. These devices also improve the engine fuel efficiency, providing clients with a high ROI (return on investment).
The company has established a worldwide sales network and has the potential to deploy its solutions in Canada, USA, Europe, South America, Mexico, Middle East and Asia. The company has already sold units to governments and private companies on three continents.
dynaCERT has overcome critical engineering challenges and now has a complete line of products that, combined, can reach a total market of USD 6 trillion with no known direct competitor, including but not limited to industries such as transportation, rail, marine, oil/gas, stationary generators and mining.
On this basis, we conservatively project the company to have yearly revenues of over USD 500M within the next seven years with a gross margin of close to 40%.
The company's main product, HydraGEN TM, costs between USD 6,200$ and 8,000$ and has an ROI of 9 - 18 months based on their fuel efficiency. The company has also partnered with a financial institution to offer a monthly payment solution for HydraGEN TM clients, limiting their capital expenditure for acquiring and installing dynaCERT products.
The company has just received the ABE certification from Germany. This is a transformative step in the history of the company as they can now sell their products in Europe. Furthermore, the certificate is recognized in Asia, South America and the Middle East. With this crucial step made, we believe that the company can achieve massive sales in the next few years. The ABE certification also serves as a strong stamp of approval.
The company has an assembly facility in Toronto, Canada, that can produce up to 12,000 units a month for a yearly total of 144,000 units. With a strong adoption rate within the next few years, we project the company to sell just under a thousand units in 2019, 10,000 in 2020 and over 30,000 by 2021.
Accordingly, we project that the company will post total gross revenues of USD 4.6 million in 2019 USD 62.4 million in 2020 and USD 223.9 million in 2021.
Based on our DCF valuation, we have calculated a price target of 1.90 CAD (1.43 USD; 1.30 EUR). Against the background of the high upside potential, we assign a BUY rating.
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Date and time of completion of this research: 20/09/2019 (12:00) Date and time of first distribution: 20/09/2019 (13:00) Target price valid until: max. 31/12/2020
übermittelt durch die EQS Group AG.
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