GRA: Trough validated; commercialization efforts continue

研报英文原文证据摘录

GRA: Trough validated; commercialization efforts continue

NanoXplore Inc.

Target/Upside/Downside Scenarios Investment summary

We see NanoXplore as benefiting from several key drivers,NanoXplore Inc.

though we see near-term risks as elevated. Highlights around

4 125 Weeks 22DEC23 - 13MAY26 the key drivers as follows:

3.5 1. The outlook for graphene remains strong, though

TARGETTARGET 2.502.50 near-term headwinds introduce some uncertainty. We

2.5 are encouraged by the progress in new product

2 CURRENTCURRENT 2.112.11 commercialization and the North Carolina expansion,

1.5 which offer significant potential for operating leverage

1 as volumes rebound and higher-margin graphene sales

8m gather momentum by 2026. However, we anticipate short-

6m

4m 2m term challenges will persist, including lower volumes from

2024 2025 2026

D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M a weaker transportation market and project/customer

GRA CN Rel. S&P/TSX COMP IDX MA 40 weeks delays on continued uncertainty.

Source: Bloomberg and RBC Capital Markets estimates for Target 2. 2H2026 guidance to show sequential improvement.

Valuation Management noted softness is expected in Q1 and Q2

We value NanoXplore using a discounted cash flow approach due to volume reductions from their two largest customers

that assumes a 9.5% weighted average cost of capital (WACC), resulting in underutilized capacity with an eventual ramp

in line with WACCs used for other companies in our coverage. in the back of the year as new programs come online. That

However, we build conservatism into our estimates to reflect said, we see the outlook in 2026 as improving; although

commodity price, equity financing, and execution risk. Our near-term headwinds especially in the transportation