Tuesday, May 10, 2022
Kandi Technologies Group, Inc. (KNDI)
First quarter results reflect shift in business line
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, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Off-road vehicle sales rose 90% year over year. Off-road electric vehicles sales, primarily golf carts, were $10.7 million surpassing our expectations for sales of $8 million. The segment has been hot every since the beginning of COVID and continues to grow in importance to the company. The company formed a new company to produce electric golf carts. The company recently signed a memorandum of understanding to sell $29 million (5,000 units), virtually doubling the division’s sales. We expect strong growth from the division.
Battery sales have been strong and now represent the second largest operating division. Battery sales were $8.0 million up from a negligible amount last year. The company acquired Jiangxi Huiyi New Energy Co. in October 2021. The division has synergistic benefits with Kandi’s other operating divisions and appears to be a profitable business on its own….
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.