Movers and SHAKERS
Kandi Technologies Group (KNDI)
Solid Results Reflect A Shifting Strategic Direction
Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd.) and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China's leading manufacturers of pure electric vehicle parts and off-road vehicles.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Results were in line with expectations and reflect a trend towards off-road vehicles and scooters and away from electric vehicles (EV). Of note was a 420% increase in revenues for scooters making it Kandi's largest operating division. Kandi reported net income of $22.9 million ($0.30 per share) versus our estimate of $25.1 million ($0.28 per share). The company's financial position remains strong with cash and cash equivalents reaching $223 million (almost $3 per share) higher than the stock's current trading price.
The EV market in China has become competitive with others selling at a loss. Kandi is deemphasizing the EV market, and with it, the ride sharing and battery swap markets to focus on off-road vehicles and scooters. The shift away from EVs may be disappointing for long-time investors who entered the stock in the hopes of finding the next Tesla. In our opinion, it is more important to be a profitable ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.