Investor Radar Alert: A TSXV company that has seen almost 5 times revenue growth year to year?
The Company has developed a disruptive new infrared solar cell profiling technology that allows solar cell producers to increase cell power and yield. Attaining profitability in a sector with very slim margins is the solar industry’s most urgent imperative. Despite this, cell lines are running without the most basic inline measurement and control, resulting in very poor product uniformity and high scrap rates. Aurora’s mission is to deliver exceptional results to the photovoltaic industry through measurement, visualization and control of critical processes during solar cell manufacturing.
Aurora provides both hardware and software solutions to reduce the time it takes to bring new lines up to speed and maximizes the yield of the highest power cells. This is critical when producing advanced cell structures. Aurora’s products improve cell efficiency and eliminate downgrades.
Global environmental concerns in large emerging markets like China and India are driving governments towards clean energy solutions like solar. The price of solar modules has plummeted from US$6/watt in 2009 to less than US$1/watt in 2017 making clean energy cheaper than fossil fuel options. This is motivating solar cell producers to invest in Aurora’s technology to improve the yield of high power cells.
This booming solar market is rapidly adopting advanced cell structures, with China intending to spend more than $360 billion through to 2020 on renewable power sources like solar. The solar PV (photovoltaic) market is expected to double from 100 GW to 200 GW in the next three years. Global revenue from PV systems is expected to exceed $1.2 trillion by 2024.
In May, 2018 a representative office in Shanghai was opened for the Asian sales team to be based. During the past two years Aurora has experienced major commercial successes in Korea, Taiwan and Singapore.
Get our daily investorintel update
With more than 80% of global solar cell production in China, the regional producers are focused on improving efficiency and manufacturing yields. Michael Heaven, President & CEO stated: “With the advancement of solar cell design and growing complexity of the production methods, the opportunity for Aurora’s measurement and control systems have never looked brighter.”
The Company received its first volume order from China for multiple DecimaTM Gemini systems, VeritasTM wafer and process mapping software last year. The products were successfully delivered and integrated into new high-efficiency bifacial cell production lines enabling the customer to accelerate its plant start up and begin competing in the high end of the market. Aurora has also delivered to one of the world’s leading solar panel manufacturers and is also in the final stages of securing a testing arrangement with a second top 5 Chinese solar cell manufacturer.
The Company has seen almost 5 times revenue growth year to year and is on track for 3 to 4 times the revenue growth in the current fiscal year (2018).
Aurora has a market cap of C$ 8.6m.
Given revenue from global PV systems is expected to exceed $1.2 trillion by 2024, and 80% of all global solar cell manufactured in China, the opportunity is enormous. China also intends to expand and spend $360 billion by the year 2020. And not to forget in the next 3 years the solar market is expected to double from 100 GW to 200 GW. Aurora is in a prime position to take advantage of this fast growing opportunity, and should soon be on investors radar.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>