Original-Research: dynaCERT Inc. (von GBC AG): BUY

^

Original-Research: dynaCERT Inc. - from GBC AG

25.03.2025 / 08:01 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

Classification of GBC AG to dynaCERT Inc.

Company Name: dynaCERT Inc.

ISIN: CA26780A1084

Reason for the research: Research Report (Initial Coverage)

Recommendation: BUY

Target price: 0.75 CAD

Target price on sight of: 31.12.2025

Last rating change:

Analyst: Matthias Greiffenberger, Marcel Goldmann

Scaling Clean Tech Opportunities

dynaCERT Inc. is a Canadian cleantech firm dedicated to developing

innovative emission-reduction technologies, specifically targeting internal

combustion engines. The company's primary technology, HydraGEN(TM), leverages a

proprietary electrolysis process to produce on-demand hydrogen and oxygen

gases, enhancing combustion efficiency, improving fuel economy, and

significantly reducing greenhouse gas emissions. dynaCERT serves diverse

sectors including transportation, mining, oil & gas, construction, forestry,

and power generation. The company's solutions are complemented by the

HydraLytica(TM) telematics platform, facilitating data-driven fuel savings and

carbon credit monetization.

Historically, dynaCERT has faced challenges generating sustainable revenue

streams, resulting in significant operational losses. The company reported

revenues declining from CAD 1.15 million in FY2022 to CAD 0.45 million in

FY2023 due to slower customer adoption, economic uncertainty, and prolonged

regulatory approval processes. Despite these past revenue fluctuations,

recent financial results indicate a potential turnaround, driven by

increased product acceptance and accelerated sales momentum demonstrated

over the first nine months of 2024.

As of September 30, 2024, dynaCERT exhibited financial constraints, notably

a negative shareholders' equity of CAD -0.39 million. Liquidity also remains

a concern, evidenced by a substantial decrease in cash and cash equivalents.

Despite these hurdles, the company has actively improved working capital

management and significantly reduced total liabilities. dynaCERT's liquidity

position has been bolstered by recent financing activities, including

private placements totaling CAD 6 million, enhancing its capacity to scale

operations and drive growth initiatives faster and more efficiently.

dynaCERT's financial outlook shows robust potential, underpinned by growing

global interest in carbon reduction technologies and regulatory mandates

pushing emissions compliance. Revenues are projected to scale significantly,

from an estimated CAD 2.40 million in FY2024 to CAD 21.00 million by FY2026,

driven primarily by increasing unit sales, software subscriptions, and

adoption within key sectors like transportation and energy. Earnings are

expected to progressively improve, transitioning from continued losses in

2024 to profitability by FY2026, with a net profit forecast of CAD 5.77

million. This turnaround reflects improved production efficiencies, better

pricing strategies, and economies of scale as operations expand globally.

Based on our DCF model and key market assumptions, dynaCERT's stock is

valued at CAD 0.75 (0.48 EUR) per share, significantly above its current

trading price of CAD 0.15, highlighting considerable upside potential. This

valuation reflects anticipated revenue acceleration, improving margins, and

strategic positioning within the rapidly expanding cleantech and hydrogen

economies. Given these compelling factors and the robust projected growth

trajectory, the stock receives a 'BUY' rating, offering investors attractive

exposure to global environmental trends, regulatory tailwinds, and the

growing carbon credit market.

You can download the research here: http://www.more-ir.de/d/32050.pdf

Contact for questions:

Kontakt für Rückfragen:

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

ﯯ뻻ﯯ뻻

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR

Beim oben analysierten Unternehmen ist folgender möglicher

Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher

Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung

ﯯ뻻ﯯ뻻

Completion: 23.03.2025 (10:00 a.m.)

First distribution: 25.03.2025 (8:00 a.m.)

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

---------------------------------------------------------------------------

2104718 25.03.2025 CET/CEST

°