Kandi Technologies Group (KNDI) – High cash position allows expansion AND share repurchase

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Tuesday, January 18, 2022

Kandi Technologies Group (KNDI)
High cash position allows expansion AND share repurchase

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.

    In recent weeks, Kandi announced that it is mass producing batteries and has an agreement to produce electric vehicles. The developments follow a recent share repurchase announcement. So is Kandi expanding or contracting? Maybe both. We believe the company’s large cash position will allow it to finance expanded operations and still consider repurchasing shares in response to recent stock price weakness.

    Kandi announces mass production of its lithium iron phosphate battery (12/28).  The batteries are being manufactured by Kandi’s wholly-owned subsidiary, Huiyi, which it acquired in the summer of 2021 for $7.7 million. The press release did not give production levels or identify customers, but spoke of the improved energy capacity of the new battery relative to past versions and industry averages …



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. 

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