BYD, dynaCERT, Block – Favourites for the future

BYD – Well above target

The Chinese market leader in electric vehicles continues to be unstoppable. Between August and October, BYD increased its production capacity by an additional 200,000 units, meaning the targeted milestone of 4 million units produced should be significantly exceeded.

By the end of November, BYD had already sold 3.76 million vehicles. This means that it is expected that around 500,000 units will be sold again in December – a figure that was already reached in October and November. These sales figures are mainly due to the capacity expansion that BYD implemented between August and October.

Lian Yubo, senior automotive engineer and director of the Auto Engineering Research Institute at BYD, announced that the Company is currently targeting sales of 4.25 million vehicles in 2024. Yubo made this statement on Friday during a speech at the asset management forum of Caijing Magazine.

Despite the successes in the year that has almost ended, BYD continues to work hard on its international expansion. For example, the plant in Hungary was not originally scheduled to go into operation until 2027. According to a report by Business Insider, the new plant in Szeged, near the Serbian border, will start producing its first units as early as the end of next year.

dynaCERT – Optimistic start to the new year

In the 2024 financial year, the Toronto-based hydrogen innovator took decisive steps to set the course for the future.

An important milestone was reached with the receipt of the Verra certification, which enables dynaCERT to generate emission certificates and opens the door to new revenue streams. On the other hand, the company was able to strengthen its position with the top manager Bernd Krüper, who is setting the course for the future and bringing in first-class contacts that are likely to result in larger orders in the near future.

What is interesting for investors is the fact that dynaCERT shares are currently trading at CAD 0.175, an increase of around 9.40% since the beginning of the year. Compared to the interim high in March 2020 at CAD 1.25, shortly before the start of the coronavirus pandemic, there is still significant upside potential. At that time, dynaCERT was not yet Verra certified. In addition, the technology has been further optimized and a worldwide distribution network has been established.

Speaking of sales, last week CE0 Jim Payne reported that dynaCERT had received both repeat and new orders from key customers in the oil & gas and mining sectors for its patented, proprietary HydraGEN™ technology **.

For example, long-standing Canadian trading partner Simple Green and its customer in the oil and gas industry agreed on the further expansion of HydraGEN™ technology. After a trial run with an HG1 unit in the second quarter of 2020, the customer ordered a further 18 units and another 84 units in the third quarter. During the last three months of the year, a further 12 HG1 units and a larger HG4C unit were ordered.

Further orders followed from Australia, Brazil, Peru, Mexico and Texas. dynaCERT also plans to further expand measures to avoid greenhouse gas emissions through the recently approved methodology by Verra, which will allow users to benefit from the emission certificates received.

Block – Optimistic analyses

According to several analyst firms, the financial technology company founded by Jack Dorsey in 2009 will be one of the high flyers in 2025. In 2024, the share price performance was relatively modest, despite the crypto hype, with an increase of around 21% to USD 91.98. But the Bitcoin mining market, in particular, promises excellent opportunities. With access to 3nm chips and a partnership with Core Scientific, Bernstein Research analyst Harshita Rawat sees underestimated long-term potential in this area, with billions in sales and strong margins. The current gross profit share in this business segment is 3%.

For 2025, the analysts are forecasting mid-double-digit gross profit growth and a 49% increase in adjusted earnings to USD 5.59 per share. The Bernstein experts raised the target price from USD 90 to USD 120.

Deutsche Bank recently raised its target price for Block shares by almost 28% – from USD 98 to USD 125. According to Deutsche Bank analyst Bryan Keane, Block is one of the fundamentally strongest companies in the bank's portfolio. Keane is optimistic that the share price could continue to rise in the coming year.

The analyst is convinced that the growth in payment volume at Block has already bottomed out. He points to an acceleration in payment volume in October and considers the preliminary forecast for 2025 to be somewhat conservative.

Block is considered by several analysts to be one of the favourites for 2025. BYD is likely to significantly exceed its target of producing 4 million units. dynaCERT has seen a significant increase in new and follow-up orders.