Missiles in the Middle East! War Fears Push Oil Prices Higher, Xiaomi and BYD Battle for Market Share – Is This dynaCERT's Moment?

Xiaomi: Massive Investments and Margin Pressure

We start with the Chinese tech giant Xiaomi. At first glance, the group's strategic direction appears strong and forward-looking. The company is sparing no expense and plans to invest a massive EUR 24 billion in research and development by 2030. A significant portion of this enormous budget is earmarked for the European market. Particular emphasis is placed on artificial intelligence, in which around EUR 7.4 billion is to be invested by 2028 alone. These plans are accompanied by the expansion of the company's still-young automotive division. The group recently unveiled its new "Sky Nomad" SUV series and remains committed to its annual sales target of 550,000 vehicles.

But it is precisely this broad strategic focus that may currently be the root of the problem. While immense sums are flowing into new business areas, the once-lucrative core business is faltering significantly. The global boom in artificial intelligence is causing memory manufacturers to divert their already scarce capacities primarily toward high-margin AI chips. The logical consequence of this is that memory chips for standard smartphones are becoming extremely scarce and, above all, expensive.

In the first quarter of 2026, memory prices were nearly four times higher than in the same period a year earlier. This environment is hitting Xiaomi's traditionally low-margin hardware business hard. The effects were most recently evident during China's major 618 shopping festival, where the company suffered a significant 24% drop in sales.

These investor concerns are reflected in the stock market. The stock has lost a great deal of value since the beginning of the year and was most recently trading in a range of EUR 2.78 to 2.83, well below its early 2025 high of EUR 7.34. Nevertheless, a rebound could be on the horizon, pushing the stock back toward the EUR 3.50 to 4.00 range.

BYD: Hypercars and Lightning-Fast Charging Times

When discussing ambitious strategies in the automotive market, the conversation inevitably turns to BYD. The Chinese industry leader is currently pursuing a very aggressive course and launching a direct assault on the European luxury segment. At the Goodwood Festival of Speed, the automaker unveiled the Denza Z Track Edition. This electric flagship delivers an incredible 1,582 hp to the road and accelerates from a standstill to 100 km/h in under two seconds. With this model, BYD is positioning a true hypercar directly against its European competitors in their home market.

International expansion is also in full swing across the board. In the United Kingdom, the group increased new registrations by a whopping 95% in the first half of 2026, corresponding to approximately 37,995 vehicles.

To maintain this momentum, the company is now rolling out three new models there, including the SHARK pickup and the compact DOLPHIN G. Technologically, BYD is also making a huge splash in industry. The new Seal 08 is equipped with an advanced second-generation Blade Battery. Thanks to a modern 800-volt architecture, it can be recharged for 400 km in an almost unbelievable 5 minutes. This means there is no longer any discernible disadvantage compared to a combustion engine when it comes to refueling or charging. Despite all these measurable operational successes, strong overseas sales, and the start of production in Hungary in the fourth quarter, the stock remains under pressure.

The share is still posting significant losses year-to-date and was last trading at around EUR 9.25—its 2025 high was just under EUR 18. The fierce price war and intense competition in the domestic Chinese market are apparently still weighing heavily on investor sentiment.

Here, too, however, there is a chance for a rebound toward EUR 12–13.

dynaCERT: Modest Progress and a Promising Chart

Away from these highly competitive mass markets, dynaCERT operates with a much narrower focus, occupying a niche that is no less lucrative. The Canadian cleantech company based in Toronto is fully focused on innovative technologies to reduce greenhouse gas emissions.

At the technological heart of the company is the HydraGEN system, a retrofit electrolysis unit that produces pure hydrogen and oxygen on demand. These gases are fed directly into the air intake of large diesel engines, where they enable significantly faster, more efficient fuel combustion. The result is a clearly measurable reduction in harmful emissions coupled with lower fuel consumption. The system's clever scalability allows for straightforward deployment in heavy-duty trucks, mining vehicles, ships, and stationary power generators.

Operationally, the company has made significant strides in recent days. Following a successful test phase, dynaCERT received its first production order from a logistics company in Vietnam. As if that were not enough, several HydraGEN units were also installed on trucks and container forklifts at one of the world's largest port operators in Vietnam. This step gives the company heightened visibility in the international port industry. There was also positive news to report on the financing front. The company successfully completed a private placement, raising gross proceeds of CAD 5 million. These fresh funds, generated through convertible debentures bearing 6% interest, are intended to further boost global sales in key industries as well as overall growth.

Finally, we look at the technical analysis, which currently paints a rather encouraging picture for dynaCERT. As early as the end of June, the stock managed to break out of a wedge formation that had lasted for months (see chart below).
In early July, the stock climbed sharply to CAD 0.15. This was followed by a healthy consolidation that brought the price back toward the CAD 0.12 mark—exactly the breakout level. The stock is currently trading at around CAD 0.13 and is aiming to resume its upward momentum.

If the share successfully breaks out toward CAD 0.15 again and can sustainably break through this local high, the target zone of CAD 0.20 to 0.25 will quickly come into focus.

In summary, the financial markets currently present a complex picture. Xiaomi faces the difficult task of demonstrating how it intends to cushion the high cost pressure on hardware components operationally without losing sight of its expansion goals in the AI sector.

Meanwhile, BYD is on the offensive. If the Chinese company succeeds in gaining a foothold in the prestigious European premium segment and offsetting the price war at home with overseas profits, its stock, which has been struggling for months, is likely to regain ground quickly.

For dynaCERT, however, the short- and medium-term outlook remains positive. The HydraGEN technology strikes exactly the right chord in times of increasingly stringent environmental regulations worldwide. The latest orders from Asia demonstrate that the systems are proving their worth in everyday industrial practice. Coupled with solid financing and a promising chart pattern, this could generate encouraging momentum in the coming months, provided that management continues to follow the chosen path with the same consistency and composure.