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 Investment Ltd. 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 (Jul-1-10)			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	$3.21	Gross marg.	43.4%	48.8%	12.4%	48.0%	44.7%	6.9%
52wk Range:	$5.04-3.02	Oper. margin	31.9%	41.6%	23.3%	35.7%	27.1%	24.1%
Avg Vol (3m):	652,580	Net margin	32.0%	35.6%	11.3%	29.8%	33.6%	33.6%
Market Cap.	220.16M
Shares Outst.	68.6M	EPS, $	0.21	0.31	47.6%	0.06	0.07	16.7%

Source: Reuters.com, SEC Filings.

Financial Summary

First Quarter 2010 Financial Results

The Company had total revenues of $19.5 million for the three months ended March 31, 2010, an increase of $8.9 million or 82.9%, compared to $10.7 million for the three months ended March 31, 2009. 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 for the three months ended March 31, 2010, totaled $9.1 million. Sales of batteries to Wuxi ZQ are included in the Company’s 2009 financial results and excluded from the 2010 financial results, since the Company acquired ownership of Wuxi ZQ in May 2009. During the quarter ended March 31, 2009, the Company recorded $0.2 million in revenue attributable to sales to Wuxi ZQ.

At April 30, 2010, the Company had a backlog of around $65.0 million for delivery throughout the next 12 months, including a battery backlog of approximately $51.4 million.

During the three months ended March 31, 2010, gross profit was $9.6 million, an increase of 91.0% year-over year. Gross margin in the first quarter of 2010 was 49.2%, compared to 47.1% a year ago. The increase in gross margin is primarily attributable to the 52.0% margin achieved in sales of medium capacity batteries, which produced only 42.8% margin in the same period of 2009.

Operating income in the first quarter of 2010 was $7.0 million, an increase of 69.2% year-over-year, from $4.1 million in the prior year’s period.

Pre-tax income of $8.3 million in the first quarter of 2010, including a gain of $1.2 million from change in fair value of warrants, represents an increase of $3.6 million from the same period of 2009. After taxes of $0.7 million accrued in the three months ended March 31, 2010, the Company’s net income increased 85.1% to $7.5 million, or $0.11 per diluted share, from $4.1 million, or $0.07 per diluted share, in the same period of 2009.

Financial Strength (Jul-1-2010)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	42.05	2.91	1.29	0.81
Current Ratio (MRQ)	44.54	3.42	1.57	0.97
Long-Term Debt to Equity(MRQ)	0.00	19.53	57.45	132.73
Total Debt to Equity (MRQ)	0.00	35.78	79.99	198.00

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	0
4 weeks ago	0	1	0	0	0	0
2 months ago	0	1	0	0	0	0
3 months ago	0	0	1	0	0	0
Last year	1	0	2	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 3.28.

Source: www.ft.com

Consensus Estimates Analysis

	# of Estimates	Mean	High	Low	1 Year Ago
SALES (in millions)
Quarter Ending Sep-10	1	27.04	27.04	27.04	–
Quarter Ending Dec-10	1	34.35	34.35	34.35	–
Year Ending Dec-10	1	102.97	102.97	102.97	122.50
EARNINGS (per share)
Quarter Ending Sep-10	1	0.12	0.12	0.12	–
Quarter Ending Dec-10	1	0.15	0.15	0.15	–
Year Ending Dec-10	1	0.48	0.48	0.48	0.60

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=ABAT.W

Investment Highlights

ABAT recently announced that effective June 24, 2010, Yulin Hao resigned from his position as a member of the board of directors of ABAT; effective June 24, 2010, the board elected Chi Quan Xue to serve as a member of the board of directors. Chi will also serve on the Audit Committee and as chairman of the Nominating and Corporate Governance Committee.

Chi has more than 40 years of experience in the Chinese banking industry. Since 2004 Chi has been a private consultant to Chinese companies seeking access to overseas capital markets. From 1998 to 2004, Chi was employed as president of the Heilongjiang Province branch of the Country Development Bank. From 1990 to 1998, Chi was employed as president of the Heilongjiang Province branch of the China Investment Bank. Previously Chi served in executive positions with the China Construction Bank. Chi graduated in 1964 from the Heilongjiang Province College of Finance.

ABAT recently announced that it received an order to sell electric vehicles valued at approximately $1.1 million to U.S.-based All-Power America. The first batch of electric motorcycles was shipped to All-Power America on June 6, 2010. This is the first entry into the U.S. market for ABAT’s electric vehicles since the Company acquired ownership of Wuxi ZQ in May 2009.

The Company signed the sales contract with All-Power America in May and plans to deliver approximately 2,000 scooters by the end of this June. All-Power America specializes in manufacturing power tools and power equipment, with operations in Shanghai, China and California, USA. The order from All-Power America demonstrates the Company’s continuing efforts to expand its international customer portfolio, in this case to include the North America market.

Source: http://www.abat.com.cn/

Technical Analysis

Source: http://stockcharts.com

ABAT is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the 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 zero, which implies that the underlying moving averages are trending lower.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Jul-1-2010	symbol	Share, $	$ Mn	2010	2011	2010	2011
Ener1 Inc.	HEV	3.19	400.92M	n/a	n/a	12.97	n/a
China Ritar Power Corp.	CRTP	3.10	67.76M	7.28	n/a	0.75	n/a
Valence Technology Inc.	VLNC	0.72	98.27M	n/a	n/a	7.55	n/a
Appliance & Tool Median			188.98M	n/a	n/a	7.09	n/a
Advanced Battery Tech. Inc.	ABAT	3.21	220.16M	8.03	n/a	3.78	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 Shares Purchased (Sold)	0.0%	n/a

Net Institutional Purchases — Prior Qtr to Latest Qtr
	Shares
Net Shares Purchased (Sold)	(56,372)
% Change in Institutional Shares Held	(0.24%)

Source: Yahoo Finance

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