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dynaCERT first institutional coverage; >250% near-term upside, no competition in $6 Trillion market

Fredrick William
0 Comments|September 24, 2019

  • dynaCERT’s Fuel-Saving and Carbon Emission Reduction Technology is award winning and on an accelerated growth adoption curve that is expected to translate into significant sales and upside share price revaluation. dynaCERT's proprietary HG technology has received top award at the 2019 Mining Cleantech Challenge in Colorado, dynaCERT won the 2019 German Innovation Awards prize for Energy Solutions, and last year it was the Gold Medal winner of the 2018 Edison Award for Best New Product. The technology acts as a catalyst; hydrogen has a 9 to 10 times flame spread which helps the engine burn diesel more completely, resulting in more power, less carbon fouling, and a reduction in pollutants (reduces NOx ~88%, CO ~50%, and particulate matter ~75%, all while increasing fuel-savings up to ~20%).
 
dynaCERT Inc. (TSX-V: DYA) (OTCQB: DYFSF) (Frankfurt: DMJ) has received its first institutional coverage. The independent investment bank GBC AG, headquartered in Augsburg, Germany, initiated coverage with a 'Buy' rating along with significant near-term upside share price appreciation. A team of qualified analysts issued an in-depth report citing the uniqueness of dynaCERT’s product with no competing technologies in a total market valued at over USD 6 Trillion, with massive sales revenues expected in the next few years, and a worldwide distribution network established. The initial adoption phase of dynaCERT's technology is underway with international orders and MOU already signed on tested, certified and patented technology with high net margin. Using a discounting of future cash flows approach the team of analysts have established a fair value per share price target at the end of the 2020/21 financial year of $1.90 CAD ($1.43 USD; 1.30 €).
 
Full copy of the institutional coverage report may be viewed online: https://sectornewswire.com/dya-analyst-report-19029.pdf
 
The report also outlines a pathway for significantly higher price potential from 2022 - 2028 via a multi-phase adoption curve covering three distinct product lines (HydraGEN TM, HydraLytica TM and dynaCERT's carbon credit management system), each requiring their own set of specialized competences in various fields. The Company has successfully developed a suite of products that can act as their own ecosystem for the transportation industry including emissions reduction, fuel efficiency and a fleet management solution while providing the client with a steady source of income with its carbon credit management program. Not only is each product unique in a standalone fashion, but when combined, the analysts believe that "we could be witnessing the birth of a giant."
 
With over a billion diesel engines in the world and interest building from multiple entities and jurisdictions, the team of analysts believe dynaCERT has a product line that can reach a total market of USD 6 trillion with no known direct competitor (dynaCERT only needs a tiny fraction of the market potential to become a multi-billion dollar market cap valuation); "There is no known competitor to dynaCERT’s HydraGEN TM unit, especially when combining it with the HydraLytica TM software that offers in one solution, an emissions and fuel consumption reduction device, a carbon-credit management program (projected) and a fleet management software. Adding all these elements together not only sets dynaCERT apart but makes it a closed ecosystem that, once implemented in a trucking fleet, becomes extremely hard to replace by any other product."
 
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EXECUTIVE SUMMARY
 
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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The following URL's have been identified for further DD on dynaCERT Inc.:
 
Corporate website: https://dynacert.com
 
Full copy of the aforementioned GBC AG Bank institutional coverage report:
https://sectornewswire.com/dya-analyst-report-19029.pdf
 
Recent Technology Journal Review:
https://technologymarketwatch.com/dya.htm
 
Recent Bloomberg BNN interview of CEO:
https://www.bnnbloomberg.ca/video/power-shift-canadian-technology-used-to-cut-diesel-engine-emissions~1666260
 
##
 
Fredrick William, BA Ec.
Fredrick is a freelance information services professional and consultant to several financial publications, he monitors and invests in the resource, technology, consumer staples, healthcare, financial, energy, utilities, and biotechnology/pharmaceutical sectors.
***
Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. The author has based this document on information obtained from sources he believes to be reliable but which has not been independently verified. The author makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of the author only and are subject to change without notice. The author assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, the author assumes no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

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