GBC AG: dynaCERT Inc | Rating: Buy
Original-Research: dynaCERT Inc - von GBC AG
Einstufung von GBC AG zu dynaCERT Inc
Unternehmen: dynaCERT Inc
ISIN: CA26780A1084
Anlass der Studie: Research Report (Anno)
Empfehlung: Buy
Kursziel: 2.20 CAD
Kursziel auf Sicht von: 31.12.2021
Letzte Ratingänderung:
Analyst: Matthias Greiffenberger, Julien Desrosiers
Significant leaps in sales to be expected
Possible technological revolution
dynaCERT has a unique technology that makes it possible to achieve emission and fuel reductions. The research and development was carried out over several years and is now to be marketed. In our initial research report (20.09.2019), we expected a significant jump in sales in 2020 and we confirm our assumption with this report. Nevertheless, we expect a lower sales level due to the corona crisis. Because of the corona crisis, hardly any units could be produced in the first half of 2020, as the production facility had to remain closed. Production should now have resumed by now (August 2020). dynaCERT was able to continue successful sales negotiations despite the production being halted and therefore has a very large order intake.
Production and sales got off to a good start at the end of 2019 and were then slowed down by the corona crisis. In the past 2019 financial year, sales revenues rose to CAD 1.06 million (previous year: CAD 0.09 million). A total of 305 systems were sold, of which 189 systems were sold in the fourth quarter. A net result of CAD -12.67 million was achieved in fiscal year 2019, with a very high gross margin of 71.4%. Overall, operating costs rose to CAD 8.79 million (PY: CAD 7.69 million), driven by higher marketing and corporate development costs.
The first Quarter 2020 initially continued the positive trend and recorded sales increases until the corona crisis brought production to a halt. Sales revenues of CAD 0.31 million (previous year: CAD 0.00 million) were achieved with a net result of CAD -2.46 million (previous year: CAD -3.78 million). Sales continued successfully and, under an exclusive agreement for the truck market in the USA, Karbon Klean has guaranteed a minimum quantity of over 150,000 units for the next three years.
In the past, technologies that contribute to fuel savings established themselves on the market extremely quickly. On the one hand, buyers can reduce their running costs and, on the other hand, competitors must also adopt the technology in order to remain competitive. For example, the market penetration of trailer skirts began in 2008 and reached a market penetration of over 60% just two years later. We expect that dynaCERT’s technology will also establish itself dynamically in the market. We have drawn up conservative planning and still expect significant sales leaps. We expect sales revenues to increase to CAD 32.00 million in the current fiscal year 2020 and to reach CAD 200.00 million in 2021 and CAD 350.00 million in 2022. On the earnings side, a similar development should take place and we expect a net result of CAD -1.34 million in 2020, CAD 45.02 million in 2021 and CAD 76.26 million in 2022. This forecast model does not yet include the extensive sales and earnings potential from the CO2 certificates (carbon credits).
The transition of the Company from TSX-Venture to the TSX demonstrates the quality of the Company and should provide even better access to institutional investors and capital.
Should the company be able to roll out the patent-protected technology on the market quickly, massive valuation leaps should be possible. On the basis of our DCF model, we are raising the price target to CAD 2.20 (USD 1.65; € 1.40) and assigning a Buy rating in view of the high upside potential.
Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/21321.pdf
Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
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Date and time of study completion: English: 10.08.2020 (09:30)
Date and time of first transmission: English: 10.08.202 (10:00)
Target price valid until: 31.12.2021
-------------------übermittelt durch die EQS Group AG.-------------------
Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
