Highlights
• The quantum dot market is estimated to reach $4,704.86 million by 2020, at a CAGR of 63.61% from 2014 to 2020
• The quantum dot display and lighting component market will surpass $2 billion by 2016 and reach $10.6 billion by 2025
• The Company has entered a funded product development agreement with leading global optical film manufacturer Nitto Denko
• Per the recent 10K, Management and Directors own ~15% of the Company
• The Company anticipates significant revenue growth in 2016
“Quantum Dot Market by Product (Display, Medical Devices, Batteries, Solar Cells, Sensors, and Others), Material, Application (Healthcare, Consumer, Defense, and Industry), and Geography - Forecast up to 2020” published by MarketsandMarkets in January 2015 which states “The quantum dot market is estimated to reach $4,704.86 million by 2020, at a CAGR of 63.61% from 2014 to 2020.” Also published in January 2015, Touch Display Research forecasts, “The quantum dot display and lighting component market will surpass $2 billion by 2016 and reach $10.6 billion by 2025.”
Shipping Samples to Potential Customers
As a result of QMC’s automated production system, QMC has increased their rate of shipping samples to potential customers. To QMC’s knowledge, these shipments represent the first shipments of automated production as opposed to manual “batch” production. QMC believes their volume production process assures customers that QMC can deliver high volumes of quantum dots for industrial use and the ability to quickly expand capacity when needed. The Company has stated the current price of quantum dots is ~$200 per gram. Thus, with over 2.25 metric tons of capacity, QMC believes it has the ability to generate north of $400M in revenue with their current production capacity. Industries or uses intended, include televisions and displays, solid state lighting, biotech, anti-counterfeiting, batteries and capacitors, sensors, solar panels, paint and coatings, inks, hydrogen conversion, glass, and lasers.
QMC’s automated continuous process: Unlike the more labor intensive batch processes described above, the Company uses a continuous manufacturing process to produce QDs and TQDs. The patented chemistry can eliminate conventional solvents and substitutes less expensive solvents that are not toxic, corrosive or volatile. The Company believes that by using this method yields are higher and manufacturing costs are lower as compared to other methods. They also believe that they are the only company to successfully deploy continuous flow technology in the large-scale manufacturing of highly uniform QDs of both Cd-based and Cd-free chemistry.
The advantages and benefits of QMC’s automated production are:
• large scale production from one workspace
• less manpower and time needed for cost savings
• economies of scale leading to lower costs
• high production yield with little post-processing
• improved quality control for higher uniformity
• and assurance of backup systems for continuous supply
Vista Partners statement
"We arrive at a $0.45 twelve-month price target for QMC using a DCFdriven analysis. Our price target assumes $15M in revenues in 2016 and positive cash flow by 4Q16. We may seek to revise our price target higher upon quarterly results that exceed our projections.
15 million in revenues and a $0.45 target?? How about 400 million in revenues with the ability to produce immediately!. Not waiting for a 100-200 million dollar facility to be built with 60+ number of employees running around. NOW!! Steve holds the winning hand, the ability to MASS PRODUCE will be the key to dominating this market space.
The Company has stated the current price of quantum dots is ~$200 per gram. Thus, with over 2.25 metric tons of capacity, QMC believes it has the ability to generate north of $400M in revenue with their current production capacity.
This one is for Steve. “People with goals succeed because they know where they’re going.” – Earl Nightingale
