Original-Research: dynaCERT Inc (von GBC AG): BUY
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Original-Research: dynaCERT Inc - von GBC AG
Einstufung von GBC AG zu dynaCERT Inc
Unternehmen: dynaCERT IncISIN: CA26780A1084
Anlass der Studie: Managementinterview Empfehlung: BUY Kursziel: 2.00 CAD Kursziel auf Sicht von: 31.12.2020 Letzte Ratingänderung: - Analyst: Julien Desrosiers, Matthias Greiffenberger
dynaCERT Inc. manufactures and distributes Carbon Emission Reduction Technology for use with internal combustion engines. As part of the growing global hydrogen economy, their patented technology creates hydrogen and oxygen on-demand through a unique electrolysis system and supplies these gases through the air intake to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency. The technology is designed for use with many types and sizes of diesel engines used in on-road vehicles, reefer trailers, off-road construction, power generation, mining and forestry equipment, marine vessels and railroad locomotives.
GBC AG: dynaCERT published important press releases in the past weeks. Can you tell us a little more about the recent developments?
Jim Payne: All the recent Press Releases point to our successful launching of our marketing expansion for the first Quarter of 2020. In Europe, we were all waiting for two years for KBA Homologation, but it has been well-worth the wait. Results have been spectacular.
Now that we have the ABE from KBA, we have turned the corner and there is no going back. We are now poised to developing expanded sales support in 2020 and that means in many jurisdictions globally, and especially in Europe, North America and Mexico. And the timing is perfect. Every Nation in the world is looking for economically feasible ways to reduce pollution, and we have a solution that applies to all diesel engines globally.
All this is a big job and requires many resources. We are now very well-capitalized to implement our international sales and marketing program.
GBC AG: How will the partnership with Mosolf affect your sales strategy in Europe?
Jim Payne: Mosolf has great capabilities and is committed to penetrating many European markets.
In trucking Mosolf is featuring our HydraGEN Technology in showrooms across Germany and will be in France, Belgium, Poland a Czech Republic soon. Mosolf is also introducing our technology to shipping on the Rhine and the Mediterranean in 2020, with Municipalities and Governments as well.
What is remarkable about Mosolf is that they understand their markets particularly well and they embrace the importance of the need across Europe for solutions to carbon pollution.
GBC AG: Can we expect Mosolf to publish their results anytime next year?
Jim Payne: I am sure that Mosolf is going to want to reap the benefits of early adoption in Europe, as so many others are also indicating. They are among the very first to ever introduce our technology in Europe and they deserve to share in all the kudos that comes with publishing their own results. As they are a private firm, dynaCERT cannot predict when nor how their results will be released.
GBC AG: Your recent development has been focused on Europe but you are also pursuing other markets in parallel. How is the Mexican operation going? And India?
Jim Payne: In Mexico, our preferred service provider, KarbonKleen, has been extremely successful recently. Mexico is a huge market for our particular pollution solutions and their diesel operators and drivers truly appreciate what our product can do.
KarbonKleen's clients in Mexico operate approximately 1 Million trucks. As they successfully reach out to their clients, I believe it can develop into a line-up of orders if we do our job right. That is why we are in negotiations to look at the feasibility of adding an assembly plant for assembling our HydraGEN Technology in Mexico to accommodate their needs one day. KarbonKleen has delivered on all fronts and continues to march in more clients every week that are adopting our technology.
In India we were invited to meet with top government officials over the Christmas Holidays and have postponed this possibly in January. The market in India understand the necessity of reducing diesel pollution, particularly in cities such as Mumbai and Delhi, but also in every corner of the country.
GBC AG: Did you already started delivering products? How are your client's reaction to the use of HydraGen? What comments are you receiving from the end users?
Jim Payne: Yes, we are delivering products daily.
We have delivered our first major order to Germany, along with shipping orders to USA, Mexico, Canada, Austria and India, Dubai, Saudi Arabia, Chile and Brazil.
Our products can deliver up to 19% fuel savings and up to 88% NOx reductions as well as up to 50% CO2 emission reductions. This is so important to not only our clients and end-users of our HydraGEN Technology but also for their customers. Everyone in the world wants fuel savings and cleaner air. That's what we do!
We have announced an MOU in Germany for 1000 Units and started shipping there already.
Previously we also announced sales of 400 Units through KarbonKleen, 150 of which have been delivered and destined to be installed in Mexico. Some of these are also installed on major trucking fleets in Canada.
GBC AG: In the recent weeks you added two great investors, Eric Sprott and Dr. Jörg Mosolf. How important is it for you to get the backing of such individuals on both continents?
Jim Payne: Our investors and shareholders are who we work for at dynaCERT. To see such commitment and support from our key investors is very encouraging. Moreover, as we grow in 2020, we all realize that we will need very strong partners for our lofty goals of international expansion. So, we welcome both Mr. Sprott and Dr. Mosolf with open arms. Dr. Mosolf has also recently been appointed to our Advisory Board, so that speaks for itself. It means significant mutual respect on all sides and collaboration on sales and after-sales support.
GBC AG: What are the next steps for dynaCERT?
Jim Payne: There is one key element going into the first half of 2020: Investors want to see evidence of sales and distribution. That is our first focus. We know it is important to the financial markets, but it's also key to building an international company like ours. We know what investors want and we are listening to them. We have moved on from an R&D business to a fully commercialized international company.
In that regard, we are adding new dealers in many jurisdictions to expand our broad reach in Europe as well as on many continents. As well, our marketing support and targeted advertising is intensifying in Q1 2020. Our product literature has been translated in numerous languages and we have dealers coming in with orders in mining internationally.
GBC AG: Finally, could you expand on the carbon credit computation technology and more specifically what kind of an opportunity it represents for dynaCERT?
Jim Payne: Our proprietary new HydraLytica Technology, along with our recent family of patents related to telematics and our Smart ECU, can now measure the carbon savings and NOx savings, along with other reductions of greenhouse gasses, of diesel engines. It can do so with the accuracy and reliability that certifiers of Carbon Credits will require. A typical Class 8 truck in North America can generate over $1,500 of carbon credits at today's price of $60 per tonne. Imagine the opportunity when just hundreds of thousands of trucks are driving around the world. That is why we are committing resources to what we believe is imperative to the fight against climate change.
GBC AG: What is your vision regarding dynaCERT for the next 3 to 5 years?
Jim Payne: International growth in many vertical markets. There are over 1 Billion diesel engines in use throughout the world. Think of our company as having a large matrix of markets to be served: Trucking, Generators, Mining, Shipping, Rail and Construction Equipment. All these markets operate in many jurisdictions, so each market application in each jurisdiction, each country, globally, is a vertical forming part of a matrix. On top of all that, we are working on developing our Carbon Credits programme. We will be cooperating world-wide with small and large operators, governments and OEM manufacturers.One diesel engine at a time!
To accomplish all this, we will be signing-up leaders and partners. For instance, we are looking at assembling in Mexico, Europe and one day in Asia, in all cases, with some sort of cooperation with industry leaders.
But most of all, while our technology has been applied to larger and larger diesel engines, we are also looking at other fuels and other applications of our hydrogen-on-demand. The scientific capabilities are multiple, and if you ask me about 5 years from now, I wouldn't be surprised to see our HydraGEN Technology expanding into other fuels as we continue to learn and commit to R&D in HydraGEN Technology injection systems.
GBC: Mr. Payne, thank you for your time.
Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/19839.pdf
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