Aurora Control Technologies (ACU.V) coverage has been initiated on January 26 with additional notes on April 19 and June 25. ACU.V improves solar cell manufacturing efficiency through its innovative products (Decima, and Veritas). Since our last updates the following releases were issued.
Jun. 27 - Initiated a Bifacial Project with one of the world’s largest solar panel manufacturers to examine capabilities and applications for the usage of Aurora’s Decima Gemini measurement and Veritas system.
Jun. 30 - Engages Paradox Public Relations for Investor Relations Services. Paid in stock - 400K - agreement for 24 months. Jul. 12 - Receives $380K from CNRC's Industrial Research Assistance Program (IRAP) to work its Decima Infrared measurement technology. Jul. 28 - Yearly earning for period ending March 31: Sales of $1.41M are up five fold from previous year. Profit margin of 43.5% vs 19% last year. ACU.V reported $2M in cash + $550K raised excluding recent CNRC's grant. Sales for the current year are expected at least 4x higher with record $6M+ order book so far including many pilot and trial projects that generate incremental sales.
Aug. 1 - Order for Gemini Bifacial Solutions from Leading Global Supplier: Two Decima Gemini measurement systems, and Veritas process visualization systems, for deployment on the client's new bifacial cell fabrication lines. In addition, the client has engaged in a joint project with ACU.V to define, document, and publish the economic benefits of Aurora’s bifacial cell measurement and visualization technology. Sep. 19 - Announced Decima Gemini's qualification for manufacturing of "BiSoN" bifacial photovoltaic cells. Bifacial cells generate 10 to 30% more power than traditional one-sided cells by using both direct and reflected light incident on both their upper and lower surfaces.
Sep. 29 - ACU.V to attend the 18th Annual GCFF (Global Chinese Financial Forum) on Saturday, September 30, 2017 Oct. 19 - Insider - CEO (Michael Heaven) bought >650K shares from July 8 to October 19. Nov. 1 - Received an order from Norway based vertically integrated PV manufacturer - REC Group for its inline cell measurement equipment. Two of its Decima 3T and Veritas products. LOI can go up to 8 units. The order will ship in Q1 2018.
Despite all the recent news, ACU.V has not received the market attention it deserves. Part of the issue is that many clients request confidentiality, also very few of the contract amount are disclosed due to the hyper competitive nature of the industry.
The recent insider disclosure of stock purchase by the CEO was surely notable. The timing also is - July 8 to October 19th. This means accumulation started after the June 27th agreement, Hence, both the the June 27th and August 1st releases are of interest. Specifically, June 27th was with "largest solar panel manufacturers", "and" August 1st was with a "leading global supplier," notably:
The systems, ordered by a leading global supplier of production equipment used at several stages in solar cell and semiconductor fabrication, will be used to speed the ramp-up the new production lines, assist in solar cell R&D and production equipment development.
Seems like the company is working both with a solar panel manufacturer, as well as with a product equipment supplier. Should either projects be successful, this could lead to a significant milestone for the company. In addition, in the most recent MD&A (August 25th), the following was highlighted.
Bifacial cells generate 8 to 25% more power than traditional one-sided cells by using both direct and reflected light incident on both their upper and lower surfaces. The industry predicts significant growth in the production of bifacial cells... with global production increasing to 30-40% by 2027 (ITRPV 2017).
Because of certain material properties inherent to bifacial cell designs, Aurora’s patented Decima infrared measurement technology is the only non-destructive method capable of characterizing and monitoring the bifacial production process. More detail on that patent can be found here. ACU.V appears to be positioned as an important player. With the latest developments, we believe that ACU.V should be monitored despite the recent sell cycle. Below is our forecast for the week. We'll leave it up to you to have a closer look.
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