- Singular Research has released an updated report on Hillcrest Energy Technologies detailing the many accomplishments of the company during the 2H 2022
- Hillcrest completed its first working prototype of its ZVS inverter, which has attracted the attention of majors in the electric mobility, including Hercules Electric Mobility and a Tier 1 automotive supplier
- Singular estimates the innovation may lead to revenue for Hillcrest later this year, rising to $10.6 million in 2024, a figure used to calculate a valuation of 20 cents per share, up 177% from the current price
Hillcrest Energy Technologies (CSE: HEAT) (OTCQB: HLRTF), a clean-technology company developing transformative power conversion technologies and control system solutions for next-generation EVs and electrical systems, was the subject of an updated report by Singular Research released on January 4, 2023. In a report in August, Singular speculated on the prospects of Hillcrest’s “potential breakthrough” inverter technology and how it could attract the attention of majors in the automotive industry (https://ibn.fm/qPMJT). The January report detailed the partnerships that have already come to fruition as Hillcrest continues to hit critical milestones, underscoring Singular reiterating its Buy–Venture rating and a $0.20 price target from current level of $0.0722.
Singular covered the extremely productive second half of the year for Hillcrest, which was highlighted by several substantial accomplishments, including completion of the first commercial prototype of their 250-kilowatt, 800-volt Zero Voltage Switching (“ZVS”) inverter. The prototype and tech undergirded the signing of a Memorandum of Understanding with Hercules Electric Mobility, a major step towards commercialization. Per the MOU, the companies are collaborating to build and test an electric powertrain system featuring a Hillcrest 250kW, 800V inverter that has been optimized for a Hercules powertrain.
Early in 2022, Coach Marine Group chose the Hercules 200kW e-drive system as the electric propulsion system for its Coach and Xcursion branded electric pontoon boats. Coach plans to manufacture up to 1,500 electric pontoon boats annually using the Hercules system, which could have a meaningful impact on Hillcrest. Singular sees the potential for this relationship to lead to monetization of Hillcrest technology later this year.
To the point of revenue, Singular posits Hillcrest to realize at least $200 per unit (a conservative estimate of ~2-4% of the total cost of a high-end inverter), which Singular models to approximately $750,000 in revenue for the fourth quarter of 2023. Looking further ahead, Singular projects revenue to increase quarter-over-quarter to result in about $10.6 million in revenue for 2024. Singular forecasts Hillcrest to be EBITDA positive in the second quarter of 2024.
Hercules wasn’t the only catalyst covered for commercialization efforts. In October, Hillcrest disclosed a partnership with an anonymous global Tier 1 automotive supplier for the purpose of integrating an optimized version of Hillcrest’s 250kW, 800V ZVS inverter technology into a new powertrain system for the auto markets. Throughout the year, the partners will test different configurations with the goal of commercializing a nominal 350kW product utilizing the benefits of Hillcrest’s technology.
To fund its continued development, Hillcrest recently closed a temporary warrant exercise program and first tranche of a non-brokered private placement, raising $1.87 million.
Other topics covered in the report included the addition of James Bolen as Chief Commercialization Officer, adding 30+ years’ executive-level experience to the team, and a revenue multiple analysis valuation. Using a discounted rate, Singular values Hillcrest at 20 cents per share, implying a 177% upside from the price per share at the time of the report.
For more information, visit the company’s website at www.HillcrestEnergy.tech.
NOTE TO INVESTORS: The latest news and updates relating to HLRTF are available in the company’s newsroom at https://ibn.fm/HLRTF
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