Stock Alert for Advanced Battery Technologies Inc. ($ABAT)
Advanced Battery Technologies Inc. (NASDAQ: $ABAT)
Advanced Battery Technologies Inc. (ABAT) is a holding company with one subsidiary, Cashtech Investment Ltd. (Cashtech). Cashtech is also a holding company with only one subsidiary, Heilongjiang ZhongQiang Power-Tech Co. Ltd. (ZQ Power-Tech). ABAT also owns a 49% interest in Beyond E-Tech Inc., a Company that distributes cellular telephones in the United States. In April 2009, Advanced Battery Technologies Inc. completed the acquisition of Wuxi Angell Autocycle Co. Ltd.
Advanced Battery Technologies Inc. was founded in 1984 and is based in New York, New York.
| Share Statistics (29-Apr-10) | FY
2007 |
FY
2008 |
%
Chg |
Q4 2008 | Q4 2009 | %
Chg |
||
| Symbol | ABAT | Revenue, $Mn | 31.90M | 45.17M | 41.6% | 10.73M | 63.56M | 492.4% |
| Current price | $3.59 | Gross marg. | 43.4% | 48.8% | 12.4% | 48.0% | 44.7% | 6.9% |
| 52wk Range: | $5.04-2.50 | Oper. margin | 31.9% | 41.6% | 23.3% | 35.7% | 27.1% | 24.1% |
| Avg Vol (3m): | 678,902 | Net margin | 32.0% | 35.6% | 11.3% | 29.8% | 33.6% | 12.8% |
| Market Cap. | 246.23M | |||||||
| Dil. Shares Outst. | 68.6M | EPS, $ | 0.21 | 0.31 | 47.6% | 0.06 | 0.07 | 16.7% |
Source: Reuters.com, SEC Filings.
Financial Summary
The Company had total revenues of $63,561,925 for 2009, an increase of $18,389,814 or 40.7%, compared to $45,172,111 for 2008. The increase in revenues was primarily due to the contribution of sales from the electric vehicle business, which the Company acquired on May 4, 2009. Sales of electric vehicles after May 4, 2009, totaled $20,329,895. At the same time, the acquisition of Wuxi ZQ resulted in flat year-to-year results in battery sales, since Wuxi Angell had been a major customer of the Company’s battery business. Sales of batteries to Wuxi ZQ are included in the Company’s 2008 financial results and excluded from the 2009 financial results, since the Company acquired ownership of Wuxi ZQ in May 2009. If sales to Wuxi ZQ are excluded from 2008 results, revenue from battery sales increased by around $4.7 million in 2009, compared to 2008.
Gross profit for 2009 was $28.39 million, a 28.8% increase from $22.04 million for the same period in 2008. During 2009 Wuxi ZQ achieved only approximately 33.2% gross margin, while the Company’s battery manufacturing operations achieved a 49.9% gross margin. The overall result of combining the battery operations with those of Wuxi ZQ was a reduction in a gross margin from 48.8% in 2008 to 44.7% in 2009.
Operating income for 2009 was $16.89 million, a 10.1% decrease from $18.78 million during the same period in 2008. Operating expenses increased to $11.50 million in 2009 from $3.27 million in the same period in 2008. The increase was almost entirely attributable to the expansion of the Company’s operations, as operating expenses in Heilongjiang ZQPT, the Company’s main battery production base in China, increased by only $0.20 million during 2009.
Net income attributable to common shares increased 32.7% to $21.4 million from $16.1 million in 2008. Diluted earnings-per-share were $0.35 for fiscal year 2009 compared to $0.31 in fiscal year 2008. The increase in net income reflected (1) a one-time gain on purchase of $9.9 million and a related $3.5 million deferred tax provision associated with the acquisition of Wuxi ZQ on May 4, 2009 and (2) a non-cash other income of $0.67 million associated with the revaluation of outstanding warrants. As of December 31, 2009, the Company had a working capital balance of $83,453,937, an improvement from a working capital balance of $49,991,602 at December 31, 2008. The Company had $52,923,358 cash, an increase of $20,177,203 from a cash balance of $32,746,155 at December 31, 2008.
On February 28, 2010, the Company recorded a backlog of approximately $49.7 million for delivery throughout the next 12 months, including a battery backlog of approximately $44.3 million.
| Financial Strength (29-Apr-2010) | Company | Industry | Sector | S&P 500 |
| Quick Ratio (MRQ) | 16.33 | 2.75 | 1.49 | 0.75 |
| Current Ratio (MRQ) | 17.04 | 3.31 | 1.86 | 0.90 |
| Long-Term Debt to Equity(MRQ) | 0.00 | 21.69 | 88.70 | 144.49 |
| Total Debt to Equity (MRQ) | 2.21 | 40.19 | 117.71 | 206.92 |
Source: Reuters.com, SEC Filings.
Analyst Consensus
| Buy | Outperform | Hold | Underperform | Sell | No Opinion |
This is the consensus forecast amongst one polled investment analysts. Against the Advanced Battery Technologies Inc company.
| Analyst Detail | Buy | Outperform | Hold | Underperform | Sell | No Opinion |
| Latest | 0 | 1 | 0 | 0 | 0 | 1 |
| 4 weeks ago | 0 | 1 | 0 | 0 | 0 | 1 |
| 2 months ago | 0 | 1 | 0 | 0 | 0 | 1 |
| 3 months ago | 0 | 1 | 0 | 0 | 0 | 1 |
| Last year | 1 | 1 | 1 | 0 | 0 | 0 |
The one analyst offering a 12-month price target expects ABAT share price to rise to 6.00 in the next year from the last price of 3.61.
Source: www.ft.com
Consensus Estimates Analysis
| # of Estimates | Mean | High | Low | 1 Year Ago | |
| SALES (in millions) | |||||
| Quarter Ending Jun-10 | 1 | 21.21 | 21.21 | 21.21 | – |
| Quarter Ending Sep-10 | 1 | 26.01 | 26.01 | 26.01 | – |
| Year Ending Dec-10 | 1 | 99.07 | 99.07 | 99.07 | 62.50 |
| EARNINGS (per share) | |||||
| Quarter Ending Jun-10 | 1 | 0.08 | 0.08 | 0.08 | – |
| Quarter Ending Sep-10 | 1 | 0.10 | 0.10 | 0.10 | – |
| Year Ending Dec-10 | 1 | 0.38 | 0.38 | 0.38 | – |
| LT Growth Rate (%) | 1 | 0.40 | 0.40 | 0.40 | – |
Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=ABAT.W
Investment Highlights
ABAT, a leading developer, manufacturer and distributor of rechargeable Polymer Lithium-Ion (PLI) batteries as well as a manufacturer of electric vehicles, recently announced that it obtained approximately $1.6 million in new orders of electric vehicles during its product promotion conference held in Wuxi City, Jiangsu Province, China.
On March 30 and March 31, 2010, ABAT held a product promotion conference for its electric vehicles customers from both domestic and overseas markets. Approximately 200 people participated in this conference, including customers from Netherlands, Chile, Canada, India, Afghanistan and hundreds of Chinese companies.
The conference exhibited ABAT’s seven main product series with more than forty types of electric vehicles on display. During the conference, the Company signed sales contracts totaling approximately $1.6 million with four customers. The Company plans to deliver the electric scooters within the next 12 months.
Source: http://www.abat.com.cn/
Technical Analysis
Source: http://stockcharts.com
ABAT is trading below its 50-day moving average. However, this moving average is trending higher which suggests that there has been buying interest in this stock.
ABAT is trading near its lower Bollinger Band. This suggests that the stock price is low relative to its recent price action.
The MACD for ABAT currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.
Comparative Analysis
| Company Name | Ticker | Price per | Mrkt. Cap. | P/E | P/S | ||
| Apr-29-2010 | symbol | Share, $ | $ Mn | 2009 | 2010 | 2009 | 2010 |
| Ener1 Inc. | HEV | 4.20 | 526.79M | n/a | n/a | 15.43 | n/a |
| Valence Technology Inc. | VLNC | 1.06 | 136.83M | n/a | n/a | 5.48 | n/a |
| China Ritar Power Corp. | CRTP | 4.22 | 92.24M | 10.43 | n/a | 0.96 | n/a |
| Appliance & Tool Median | 251.95M | n/a | n/a | 7.29 | n/a | ||
| Advanced Battery Tech. Inc. | ABAT | 3.59 | 246.23M | 10.12 | n/a | 3.93 | n/a |
Source: Thomson Financial
Insider Trading Activity
| NET SHARES PURCHASE ACTIVITY
Inside Purchases – Last 6 Months |
||
| Shares | Transaction | |
| Purchases | n/a | 0 |
| Sales | n/a | 0 |
| Net Shares Purchased (Sold) | n/a | 0 |
| Total Insider Shares Held | 9.13M | n/a |
| % Net Share Purchased (Sold) | 0.0% | n/a |
| Net Institutional Purchases — Prior Qtr to Latest Qtr | |
| Shares | |
| Net Shares Purchased (Sold) | (485,650) |
| % Change in Institutional Shares Held | (2.4%) |
Source: Yahoo Finance
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