Driving Expansion by Leveraging Battery Innovation and Ridesharing
|52 Week Range||$2.17-$17.45|
|Avg. Daily Vol. (30 day)||5,550,000|
|Shares Out (MM)||72.4|
|Market Cap (MM)||$450.9|
|Institutional Ownership %||30.0%|
|Short Int./% of Float||9.7 / 16.7%|
|Debt to Equity||N.M.|
|Revenue TTM (MM)||$106.4|
- Kandi is a pioneer in electric vehicles (EVs) and is engaged in researching, developing, manufacturing, and commercializing pure EV products, smart battery swap equipment, off-road vehicles, and a range of EV parts.
- A key differentiator for Kandi is its increased focus on battery innovation and battery exchange to increase the range of EVs. This has been achieved through several strategic alliances. Kandi has established China Battery Exchange Technology Company to focus on R&D for battery technology innovation.
- Ridesharing is another key focus area for Kandi. For this purpose, the company has established a subsidiary focused on China’s ridesharing service leveraging Kandi’s battery swapping technology and EVs.
- China is presently the world’s largest EV market with 50% share and is slated to grow 40% between 2017 and 2022 to over 2.2 million vehicles. China is a huge market for entry-level EVs, in which Kandi specializes, presenting significant opportunity.
- Kandi needs to expand product lines across the value chain of EVs in order to increase the TAM.
- With the support of partnerships, rideshare programs could materialize into a fleet of 300,000 EVs, with initial operations in Hainan and Zhejiang provinces according to the company. If the trials go well, similar programs can be replicated in other cities.
Kandi has made its mark in every step of the EV value chain and can leverage its expertise. Management believes it can quickly monetize opportunities to innovate. Kandi is expanding its product line with specific focus on battery innovation, which the company believes will position it to gain a slice of the large and rapidly growing EV market in China. Kandi is also making rapid strides in ridesharing programs that could add significantly to revenue according to Kandi.
Ridesharing and battery swap programs seem underpenetrated and hence the adoption of such programs is uncertain. If delayed, this may adversely impact revenue and profitability. Also, the company runs the risk of high concentration in clientele, geography, markets, and suppliers, which may collectively affect liquidity, operating revenue, margins, and its cash position.
Kandi is a pioneer in electric vehicles (EVs) and is engaged in researching, developing, manufacturing, and commercializing pure EV products, smart battery swap equipment, off-road vehicles, and a range of EV parts.
Water Tower Research (“WTR”) is a professional publisher of investment research reports on public companies and, to a lesser extent, private firms (“the Companies”). WTR provides investor-focused content and digital distribution strategies designed to help companies communicate with investors.
WTR is not a registered investment adviser or a broker/dealer nor does WTR provide investment banking services. WTR operates as an exempt investment adviser under the so called “publishers’ exemption” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940. WTR does not provide investment ratings / recommendations or price targets on the companies it reports on. Readers are advised that the research reports are published and provided solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities or the rendering of investment advice. The information p...