(MENAFN- Investors Ideas) August 8, 2017 (Investorideas.com Newswire) A Calgary-based company is positioned to provide energy storage solutions to Hawaii's burgeoning renewable energy market, and the company's recent big order from Australia boosted its order book.
Sales for Calgary-based received a big boost with the of CA$3 million in orders for its AC Battery in Australia. "Through our partnership with Itochu Corporation we have been able to establish a strong beachhead in the Australian market with a very capable national distributor that positions us for growth," said Justin Holland, CEO of Eguana. "Enirgi Power Storage has the scale and battery expertise required to deliver our products into key regional markets for energy storage within Australia. We are pleased to be able to support their growth expectations across residential and commercial segments," Holland added.
According to Eguana, the "Australian residential storage market is widely expected by analysts to be the fastest growing storage market in the world over the next several years. Australia's market dynamics are being driven by a unique combination of behind-the-meter self-consumption and grid service revenues supported by the country's utilities and electricity retailers."
In an article published in , Sophie Vorrach noted that businesses and households in Australia are installing rooftop solar at a rapidly growing rate, and that industry analyst SunWiz reported that a "total of 5.7GW or rooftop PV had been installed on 1.7 million households and businesses at the end of May, capping off a record first five months of installs in any year in the country's history." Several areas of Australia, including South Australia and New South Wales, are facing double digit electricity rate hikes, a factor that is hastening the adoption of solar.
A report by Bloomberg New Energy Finance that in Australia, "renewables and storage make up 81 per cent of all new capacity additions to 2040."
Analyst Nikhil Thadani of Mackie Research wrote on June 26 that Eguana's "entry into the large Australian market could be accelerated by this relationship via Enirgi Power Storage channel, which builds upon EGT's relationship with Itochu, as all involved parties have been working diligently for months to get traction going."
Thadani added that with the "order book up nicely so far in F2017 (~10x), we expect EGT to exit the fiscal year with orders beginning to convert into revenue in a consistent fashion. EGT's previous quarterly peak revenue was ~$1.5 mln/qtr. Based on how these orders translate into revenue and follow on orders, the stock should start to build nicely from here."
Mackie has a $0.70 per share one-year target, "based on our blue-sky upside." The stock is currently trading around $0.27 per share.
Eguana's energy storage solutions have gained the inside edge in Hawaii, where, to the company, its residential solar storage has become the "only grid interactive lithium based system with an expedited permitting approval from the Honolulu Department of Permitting and Planning, reducing the AC Battery permitting process time from several months to a 5-minute web based automatic approval."
Currently about 16% of Hawaiian electric customers have solar photovoltaic systems, a figure that is about 20 times the U.S. national average. With the mandate in Hawaii to employ only renewable sources of energy by 2045, Customer Self Supply is becoming the standard, where households have their own storage system. Eguana has with E-Gear LLC to supply its residential AC battery for installation.
"E-Gear installations began within days of being granted the expedited permitting approval process for the AC Battery and we are now seeing predictability with in the sales and ordering cycle for solar+storage in Hawaii," said CEO Holland, announcing the CA$2.5 purchase order from E-Gear on May 1. "Creating consistent and growing baseline demand with our factory integrated and certified AC Battery was a crucial step for the Company and our expectation is to see quarter over quarter growth from the Hawaiian market as the state drives toward its 100% renewable energy target."
In Eguana's May 25 , the company reported that its "year to date order book is beyond $5 million in the US, second generation Residential AC Battery has been completed, and the supply chain has been set up to begin shipments in June." Sales in 2016 were in the $700,000 range.
In March, Eguana was one of five companies highlighted by Canaccord Genuity in its Sustainability .
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own shares of Eguana Technologies, a company mentioned in this article.
OilandGasStockNews.com- investing ideas in oil and gas stocks Like Oil and Gas Stocks? View our
More Info: This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info:
Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: . Global investors must adhere to regulations of each country.
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.