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Argus Research Initiates Equity Research Report Coverage on Kandi Technologies Group, Inc. (NasdaqGS:KNDI)
KNDIKandi(KNDI) Prnewswire·2025-01-15 12:45

Business Model Pivot - 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), moving away from the saturated traditional EV market [2] - The company has a positive commercial outlook for its golf carts in North America and globally, supported by a limited-edition collaboration with Lowe's featuring NFL branding, launched in fall 2024 [2] Product Portfolio and Supply Chain - Kandi's vehicle portfolio is customizable to more than 20 models, supported by an established supply chain in China and a solid intellectual property (IP) portfolio for product differentiation [2] - The company is establishing new manufacturing and production channels in the United States and Taiwan to mitigate the impact of tariffs on goods produced in China [2] - Kandi has a diversified portfolio of parts across the EV value chain, some of which are not subject to China tariff laws, supporting its growth strategy [2] Growth Strategy and Investments - In October 2024, Kandi issued a 5-year growth forecast through 2029, focusing on smart mobility, a high-growth market in China [2] - The company plans to invest 130milliontodevelopproductionlinesintheU.S.foroff−roadvehiclesandlithiumbatteryswaptechnologiestoenhanceitssupplychain[2]LeadershipandManagement−KandiappointedFengChenasitsnewCEOinOctober2024,leveraginghisstrongbackgroundinlithiumbatterytechnologies[2]−ChairmanXueqinDong,thepreviousCEO,hasextensiveleadershipexperienceintheEVmarketandisathoughtleaderinelectricvehicleinfrastructureandsafety[2]FinancialPosition−AsofSeptember30,2024,Kandihad130 million to develop production lines in the U.S. for off-road vehicles and lithium battery swap technologies to enhance its supply chain [2] Leadership and Management - Kandi appointed Feng Chen as its new CEO in October 2024, leveraging his strong background in lithium battery technologies [2] - Chairman Xueqin Dong, the previous CEO, has extensive leadership experience in the EV market and is a thought leader in electric vehicle infrastructure and safety [2] Financial Position - As of September 30, 2024, Kandi had 260 million in cash, restricted cash, and investments, with a working capital surplus, positioning the company well to invest in growth initiatives [2] - The company is well-positioned to invest in building supply chain infrastructure in the U.S., acquiring companies in growth industries, and buying back its shares [2] Valuation and Fair Value - Kandi's fundamentals are strong but not reflected in its valuation, with the company trading below its balance sheet cash on hand, tangible book value, and shareholder equity as of January 2025 [2] - Based on forward enterprise value/sales analysis, the fair value of Kandi is estimated at $7.00 per share, well above current levels [2] Company Overview - Kandi Technologies Group Inc develops, manufactures, and commercializes fully electric vehicle products and related technologies, with primary markets in the United States and China [4] - 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 [4]