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Energy Firm's New Distribution Relationships 'Aid Revenue Build'
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A Mackie Research Capital Corp. report points out signs that this company keeps progressing toward steady revenue.

In an Aug. 12 research note, analyst Nikhil Thadani with Mackie Research Capital Corp. reported that since June 2018, Eguana Technologies Inc. (EGT:TSX.V; EGTYF:OTCQB) formed at least seven new distribution relationships around the globe, which are helping build the corporation's revenue. The energy firm designs and manufactures intelligent power electronics for distributed smart grid and micro-grid applications.

Mackie forecasts that Eguana is on track to achieve steady and growing revenue beginning in Q1/19. "We believe Eguana's early order intake driven by recently announced new distribution announcements and existing relationships could approach about CA$3–5 million (CA$3–5M)," Thadani added.

In the research report, the analyst listed Eguana's most recent distribution partnerships. The dates, companies and distribution regions are as follows:

  • Aug. 7, 2018, Nu-NRG, Eastern Canada
  • Aug. 1, 2018, E-GEAR, Hawaii
  • July 26, 2018, Maximo Solar, Puerto Rico
  • July 25, 2018, Affordable Solar, Turks and Caicos Islands
  • July 23, 2018, Creative Solar USA, Southeast U.S.
  • July 12, 2018, Icarus Enerji, Turkey, Middle East, Africa, Central Asia
  • June 8, 2018 Calix, Benelux

"We have previously indicated that expanded distribution relationships could increase Eguana's 2019 addressable market by about 70% (expanded global footprint versus Australia focus)," Thadani highlighted. "The wide geographic range of recent distribution expansion supports this view."

Thadani pointed out other reasons to expect Eguana will continue growing revenue this year. One is feedback Mackie obtained via phone calls to some of the new partners, all of which " were excited to work with Eguana." They commonly cited "positive benefits from Eguana's vertically integrated modular product stack, faster installation, higher confidence in product availability (relative to competitors) and expectation of volume ramps in the coming months." These favorable views suggest Eguana can expect repeat orders from these companies.

Mercedes-Benz Energy's (MBE) endorsement also supports the revenue building argument. In June, after six months of testing by MBE, it recommended distributors obtain residential energy storage products from Eguana. That, together with the recent partnership news, "positively signals Eguana's market positioning relative to competitors," noted Thadani.

Mackie Research has a Speculative Buy rating and CA$0.70 per share price target on Eguana, whose current stock price is around CA$0.20.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures from Mackie Research, Eguana Technologies Inc., Update, August 12, 2018

Relevant disclosures required under Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at

Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

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