By late afternoon, shares had added 4.2% to $11.54.
Kandi's wholly-owned subsidiary Zhejiang Kandi Vehicles has signed a one-year supply contract with China's largest producer of rechargeable lithium-ion batteries. The contract will begin May 2014 with a minimum of 25,000 cases of batteries delivered. The contract is valued at around $58.5 million.
- KNDI's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues leaped by 92.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, KNDI's share price has jumped by 225.00%, exceeding the performance of the broader market during that same time frame. Although KNDI had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The debt-to-equity ratio is somewhat low, currently at 0.72, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
- KANDI TECHNOLOGIES GROUP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, KANDI TECHNOLOGIES GROUP swung to a loss, reporting -$0.57 versus $0.20 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Automobiles industry. The net income has significantly decreased by 776.1% when compared to the same quarter one year ago, falling from $2.17 million to -$14.65 million.
- You can view the full analysis from the report here: KNDI Ratings Report