NEW
YORK, Jan. 15, 2025 /PRNewswire/ -- Argus
Research, an independent investment research firm, has launched
Equity Research Report coverage on Kandi Technologies Group,
Inc. (NasdaqGS:KNDI).
Click Here to view full Argus Equity Research
Report.
COMPANY HIGHLIGHTS: Excerpts (as conveyed by Argus
Analyst Steve Silver) include:
KNDI: An Emerging Global Leader in Off-Road Electric Vehicles
and Battery Swap Technologies
- Successful Pivot to Off-Road Vehicle Categories: In our
view, Kandi Technologies is successfully pivoting its business
model to focus on off-road vehicles, including golf carts, utility
vehicles (UTVs), and all-terrain vehicles (ATVs), and away from the
saturated traditional EV market. We have a positive commercial
outlook for Kandi's golf carts in North
America, as well as globally, supported by a limited-edition
collaboration with retail leader Lowe's with branding for the
National Football League, which launched in fall 2024. We expect
the golf cart line to expand across Lowe's footprint over time.
- Customizable Products in Robust Supply Chain: KNDI's
vehicle portfolio is customizable to more than 20 models, which
continues to be improved upon, and we see the products supported by
an established supply chain in China and a solid intellectual property (IP)
portfolio for product differentiation. We see the company
establishing new manufacturing and production channels in
the United States and, to a lesser
extent, in Taiwan, helping to
mitigate the impact of tariffs on goods produced in China. We see its diversified portfolio of
parts across the EV value chain, some of which are not subject to
the China tariff laws, supporting
the growth strategy.
- Investments in Long-Term Growth Strategy: In
October 2024, Kandi issued a 5-year
growth forecast through 2029, which included smart mobility, which
is poised to become a high-growth market in China. The company plans to invest
$130 million to develop production
lines in the U.S. for its off-road vehicle and lithium battery swap
technologies, in order to enhance its supply chain in these areas,
amid strong global economic demand trends.
- New Leadership to Execute: We see Kandi's leadership
positioning the company to achieve its growth targets, as in
October 2024, Kandi appointed
Feng Chen as its new CEO, which we
view positively given his strong background in lithium battery
technologies. In addition, Chairman Xueqin
Dong, Kandi's previous CEO, has extensive leadership
experience in the EV market and is a thought leader in the space on
electric vehicle infrastructure and safety, as a paper publisher
and patent owner.
- Healthy Balance Sheet: As of September 30, 2024, the company had $260 million in cash, restricted cash, and
investments, with a working capital surplus, on its balance sheet.
As such, we see the company as well positioned to invest in its
announced growth initiatives, including building supply chain
infrastructure in the U.S., acquiring companies in growth
industries such as smart mobility solutions, and buying back its
shares, perhaps more aggressively than it has to date, amid
protracted stock price weakness.
- Fair Value: We think that Kandi's fundamentals are
strong and are not reflected in the company's valuation. As of
January 2025, Kandi was trading below
its balance sheet cash on hand, as well as its tangible book value
and shareholder equity. We expect the company's valuation to begin
to normalize as it executes on its growth strategy. Based on our
forward enterprise value/sales analysis, we arrive at a fair value
of $7.00 per share, well above
current levels.
INVESTMENT THESIS: Click Here to view full Argus Equity
Research Report and Investment Thesis.
About Kandi Technologies Group, Inc.
(NasdaqGS:KNDI)
www.kandigroup.com
Based in Jinhua, China, Kandi
Technologies Group Inc. (Nasdaq: KNDI) develops, manufactures, and
commercializes fully electric vehicle products and related
technologies, with primary commercial markets in the United States and the People's Republic of China (PRC). The
company's product portfolio focuses on off-road electric vehicles
(EVs), power electric motors and controllers, lithium batteries and
battery packs, and battery exchange systems.
For more information please contact:
Kandi Technologies Group, Inc.
Ms. Kewa Luo
+1 (212) 551-3610
IR@kandigroup.com
The Blueshirt Group
Mr. Gary Dvorchak, CFA
gary@blueshirtgroup.co
About Argus Research Corp.
Headquartered in NYC, Argus Research (www.argusresearch.com) is
a leading independent equity research firm (est. 1934)
̶ providing fundamental and quantitative research coverage on
more than 1,600 companies across all 11 sectors of the S&P 500,
as well as macroeconomic and equity market forecasts, thematic
research, model portfolios and IPO research. In addition,
Argus has recently committed to providing a company sponsored
research solution for small & mid-cap companies seeking
coverage. Argus's CSR Research Reports & earnings
estimates (if applicable) are available on major research /
earnings estimate aggregator platforms, including Bloomberg,
Thomson Reuters, Factset and S&P Global.
For more Information please contact:
Darrell Stone
646-747-5438
dstone@argusresearch.com
Argus Research Co. has received a flat fee from the company
discussed in this report as part of a Sponsored Research agreement
between Argus and the company. No part of Argus Research's
compensation is directly or indirectly related to the content of
this assessment or to other opinions expressed in this report.
Please refer to the full Argus report and the disclaimer for
complete disclosures.
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