October 10th, 2023 | 08:50 CEST
dynaCERT, BYD, Plug Power - The future is going green
Table of contents:
"[...] We are committed to stay as the number one Canadian and global leader in the Hydrogen-On-Demand diesel technology [...]" Jim Payne, CEO, dynaCERT Inc.
dynaCERT - Things are happening
Diesel engines contribute significantly to CO2 emissions, especially in the transportation sector. Fleet operators must reduce their emissions in the long run or buy expensive CO2 certificates to offset their ecological footprint. If fleet operators want to reduce their emissions today, they can use dynaCERT's HydraGEN solution. This technology has been developed over the past 18 years. It generates hydrogen and oxygen from distilled water, which is fed through the air intake of diesel engines and ensures that the combustion process is optimized. This process increases performance while saving fuel and emissions such as CO2, NOx and CO.
Sales have risen noticeably this year, and according to the Company, negotiations are underway with major customers. The fact that these orders are not yet through could be due to the still missing Verra certification. The Company received approval from Verra for the Verified Carbon Standard methodology as early as the end of 2021. The bureaucratic mills grind slowly. With approval from Verra, automated reporting and analysis through the Company's proprietary HydraLytica software can play to its strengths in comprehensive monitoring of fuel savings and emissions reductions. CO2 allowances would be generated accordingly. This would be a milestone for dynaCERT.
The Company receives further support from the Canadian government, which has launched a "Green Freight Program", further reducing investment costs for potential HydraGEN customers. The purchase will pay for itself in less than 12 months, provided that average truck mileage is achieved. As of September 29, Canaccord Genuity Corp. has served as financial advisor to dynaCERT. Interested investors can get live updated information today, October 10, at 4:30 PM when CEO Jim Payne presents the Company at the International Investment Forum. Last Thursday, the stock shot up over 30% and held steady at CAD 0.16 on Friday. So far, there has been no news to explain this rise.
BYD - New record sales figures
The electric vehicle (EV) market is expanding, with the largest market currently being in China, where BYD is the market leader. Unlike the competition, the Company produces its own batteries and microchips for its vehicles, reducing its dependence on supply chains. In 2022, BYD was able to sell 1.9 million electric vehicles (EVs). This number was already surpassed in September of this year, and they are on track to reach their annual goal of 3 million vehicles sold. To achieve this target, they need to sell 920,000 more EVs.
Since BYD set a new record in September with 287,454 units and has recently grown month by month, reaching the target seems realistic. Further growth is promised by the international market, which the Company has only marginally worked on so far. To illustrate, in September, only 28,039 vehicles were sold internationally. Headwinds are currently coming from the EU, which has initiated an anti-subsidy investigation into electric vehicles from China. BYD's executive vice president reacted calmly to Bloomberg and promised to provide the requested documents.
Most recently, Elon Musk had criticized Germany's migration policy. Experts interpret this attack as fear of possible punitive tariffs by the EU on electric vehicles, which could also hit Tesla in the end. The analysts are very positive about the share. There are 30 buy recommendations, and only 3 experts advise hold. The average price target is around EUR 41. The share is currently trading at EUR 28.72. The stock is generally trading at a discount due to geopolitical tensions.
Plug Power - It will be challenging to reach the annual targets
Hydrogen is traded as a promising alternative to fossil fuels and could play an important role in the energy transition in the future. One company specializing in hydrogen and fuel cell technology development is Plug Power. With notable customers such as Amazon, the Company has become a prominent player in the US market. But Plug Power has also secured several projects internationally. However, as interest rates have risen, the Company's stock, like the entire industry, has experienced a decline.
The Company needs capital to continue on its growth path, which is currently Plug Power's biggest Achilles heel. Despite numerous projects, the Company is not yet in the black. In addition, the management has lost a lot of trust by making big promises but failing to keep them. According to the half-year report, it does not look like the group will reach its target of USD 1.2 to USD 1.4 billion in revenue. As of June 30, only USD 470 million had been generated. In addition to margins, construction delays of green hydrogen production facilities are a problem.
The delays of about 6 months are providing less revenue than planned. No significant order has been announced since July, so Q3 numbers are not expected to be surprisingly positive. Figures are due to be presented on November 8. The stock formed a new low at USD 6.17 last Friday. From there, it went up with the solid overall market to USD 6.61. At USD 6, an important support is waiting, which should not break if a countermovement should finally set in.
Climate change concerns everyone, and regulations have already been tightened significantly. dynaCERT offers diesel owners the opportunity to save fuel while reducing emissions. If the Verra certification comes, this is similar to Tesla's license to print money. BYD, as a former battery producer, made an early bet on electric vehicles. This head start is now paying off and explains the strong growth in recent years. Hydrogen technology is on the rise, but not yet profitable, impacting companies like Plug Power. Here, one should keep an eye on the next quarterly figures.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.