Tag: Auto Parts

Commercial Vehicle Group, Inc. (CVGI) – Post Call Commentary

Posted on by cpereira@noblefcm.com


Wednesday, March 08, 2023

Joe Gomes, Managing Director – Generalist Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q22 Bottom Line Impacted By Special Items. CVG reported GAAP EPS of a loss of $0.98. Adjusting for one-time items, adjusted EPS was $0.04. Further adjusting for special items, high program start-up costs and foreign exchange, special item adjusted EPS was $0.14, or much more in-line with our $0.17 forecast, which did not include any of the above.

A Refined Long-term Roadmap. Management put out a more refined long-term roadmap with a goal of $1.5 billion of revenue and a 9.0% adjusted EBITDA margin for 2027. While the new revenue goal is below the previous $1.9 billion goal, the adjusted EBITDA margin rises from a prior 8.5%. We believe the updated road map reflects management’s goal of focusing on adding only higher margin growth and not just growth for growth’s sake.


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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. 

Commercial Vehicle Group, Inc. (CVGI) – 4Q22 First Look

Posted on by cpereira@noblefcm.com


Tuesday, March 07, 2023

Joe Gomes, Managing Director – Generalist Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

4Q22 Top Line. Revenues were $234.9 million compared to $228.9 million in the prior year period, an increase of 2.6%. The increase in revenues is due to increased pricing to offset material cost increases. Foreign currency translation unfavorably impacted fourth quarter 2022 revenues by $6.3 million, or by 2.7%. New business revenue was approximately $20 million in the quarter, offsetting ongoing softness in the Industrial Automation segment. We had forecast revenue of $249 million.

4Q22 Bottom Line. CVGI reported a net loss of $32.0 million, or $0.98 per diluted share for the quarter, caused by non-cash charges related to tax valuation allowance changes, a pension settlement to terminate the Company’s U.S. legacy pension plan, and a $10.4 million non-cash charge in the Industrial Automation segment due to the modest outlook for the business. Adjusted EPS was $0.04, short of our $0.17 projection. Adjusted EBITDA was $13.3 million, up $0.4 million or 3.1%.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Commercial Vehicle Group, Inc. (CVGI) – Conference Presentation

Posted on by cpereira@noblefcm.com


Monday, January 23, 2023

Joe Gomes, Managing Director – Generalist Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Investor Conference. Late last week, Commercial Vehicle Group’s (CVG) CEO Harold Bevis and CFO Andy Cheung presented at an investor conference. As we highlighted in our initiation report, CVG is in the midst of a business transformation and management provided an overview of the current status.

Contract Wins. Over the past two years, CVG has won over $400 million of annualized new business at full ramp. CVG won over 300 programs with 115 new and existing customers in 18 countries in 19 different markets. New business should contribute over $150 million of revenue in 2023.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Kandi Technologies Group, Inc. (KNDI) – Kandi gets major order for crossover golf carts

Posted on by cpereira@noblefcm.com


Tuesday, December 20, 2022

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.

Kandi received a letter of intent from Coleman Powersports to purchase 4,800 electric golf carts for a value of $27.6 million. Coleman Powersports, a division of Newell Brands (a distributor of various camping and outdoor living gear) began purchasing the Kandi golf carts in April for sales through Lowes stores and has increased the order volume steadily up to a rate of 1,000 in September. The sales to Coleman are expected to occur in the 2023 first quarter and thus represent an 60% increase in orders for Coleman over September sales.

What does this mean for Kandi? The Off-road vehicle segment is the fastest growing division of  Kandi growing more than 400% year over year in the September quarter. What’s more, it is the most profitable division for the company with operating margins in excess of 25%. The company has shifted attention away from electric cars and towards off-road vehicles and the shift has clearly paid off. The fact that the sales are going to established brand names such as Coleman and Lowes is significant and lends credence of future sales growth.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

Commercial Vehicle Group, Inc. (CVGI) – A Business Transformation

Posted on by cpereira@noblefcm.com


Thursday, December 01, 2022

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Patrick McCann, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Initiation. We are initiating research coverage of Commercial Vehicle Group, Inc. (CVG) with an outperform rating and a $10.00 price target. CVG is in the midst of a business transformation to drive top line revenue and overall margin improvements, with a goal of doubling revenue and increasing adjusted operating margin by 300 basis points by the 2025-2027 time frame.

Attractive End Markets. Long-term prospects for CVG’s key end markets are attractive. Demand for class 8 trucks exceeds supply and, with an aging fleet, is likely to continue. The ongoing switch to electric vehicles is opening a massive opportunity for CVG. And while the warehouse automation vertical is currently challenging, longer term we expect to see significant growth. 


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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.