UDC has 52% upside to target price. Story on Wall St Journal
UDC's first fundamental OLED patent expires in 2017 in the U.S. but not until end of 2018 in the rest of the world. The case to match those up would be stronger if the Samsung contract lasted through 2018.
According to news from Shanghai Government News Press on 15th July, Shanghai has already drawn up the plan for promoting new energy buses, which aims at introducing 13 thousand new energy buses. Among them, the non-native brands should be higher than 30%, the ratio of the new energy buses among the newly added or replaced vehicles for public transport, public affairs, sanitation, logistics should be higher than 30%, and around 6,000 various charging posts will be installed.
From January to June this year, there are 1,436 registered free license plates for passenger vehicles. Although the license plates have not been fully used, Shanghai will allocate 20 thousands license plates to them for free to the year of 2015 to encourage the development of new energy buses. There will be around 2,000 new charging posts, which are mainly located in places such as Jiading Motor City. Comparatively speaking, there are not so many charging posts tailored for communities and public areas.
There will be 40 thousand yuan subsidies for pure electric buses, and 30 thousand yuan subsidies for plug-in hybrid buses in Shanghai. According to the subsidy policy of this year, Roewe 500 plug-in hybrid bus, for example, will get a total subsidy amounting up to 63 thousand yuan. In some districts such as Minxing, there will be another 20 thousand subsidies. From this September, the new energy bus will be exempted from the purchase tax.
Look at the 11,000 Aug $8 calls and 6,000 Nov $9 calls purchased today. Someone believes enough to put up $1.75 million on options. Oh, and Barclays raised their price target though its up from $7 to $8. Have you read the broker reports to know why they are raising price targets?
Topeka's anticipates strong unit growth in the smartphone, tablet and wearable end markets and recommends exposure to large/mid cap growth names Intel (INTC), Skyworks (SWKS), Atmel and (ATML), small cap growth name, Rambus (RMBS), and value names Freescale (FSL), Spansion (CODE) and Silicon Motion (SIMO).
Those numbers are for all buses not just new energy buses. The previously posted article was for the new energy buses which have Maxwell content.
"We recommend investors keep a close eye on Yutong’s June production numbers (likely to be released in early July) as validation of our 2Q:14 earnings revision."
Yutong Sales Decline Narrowed in June Expected to Grow in July
According to sources, Yutong sold 1288 units new energy buses (mainly 10-plus meter) in the first quarter and received 0.35 billion yuan subsidies from government for the promotion of new energy buses, averagely 0.272 million yuan per unit. In Dongguan [June 16] city purchase project of 600 units plug-in hybrid electric buses, Yutong won an order of 0.52 billion yuan. The sales increase of new energy buses will make up the sales decline of traditional large buses caused by the adjustment of buses sales structure. The sales of large buses is 2062 units in June, down by 0.7% year on year.
During Jane to May 2014, Yutong produced 3665 units LNG buses and 1382 units plug-in hybrid electric buses, sharing the market by 18.9% and 48.5% respectively, both ranking the first in the bus industry. However, the production of pure electric buses is 40 units sharing only 3.4% of the market. Dedicated in improving new energy bus production line, Yutong will launch E7 pure electric buses in the second half year of 2014. Compared with the same-length diesel buses, it is expected that E7 will save 155yuan/100km fuel cost, which is a remarkable price competitiveness. It is expected that the sales of E7 in the second half year will reach 2000 units. Meanwhile, Yutong will transfer lightweight technology into large and medium electric buses then put them on the market. The sales increase of pure electric buses will be the main cause to the sales increase of new energy buses in the second half year.
In a report published Tuesday, Morgan Stanley analyst Craig Hettenbach reiterated an Overweight rating on Atmel (NASDAQ: ATML), but removed the $10.00 price target.
In the report, Morgan Stanley noted, “We continue to think Atmel is well positioned to benefit from a pick-up in IoT through its family of Integrated MCU + Connectivity products. The company is leveraging 8- and 32-bit low power MCUs, Sensor Hub, and software tools to drive incremental sales into IoT based products in applications such as Smart Lightning and Home Automation. We remain Overweight the stock on the thesis of share gains in MCUs, new growth opportunities in wireless connectivity and compelling operating leverage (OMs19% points below peak).”
Golden Dragon is a customer.
I believe they said the initial models would have similar content whether its plug-in hybrid or pure electric but they only expect pure electric buses to be about 5% of the market.
from the Q1 conference call...
John Warwick - COO
the ultracaps capture the (inaudible) of breaking energy and provides a rapid acceleration far better than the battery stand unless really oversize the battery. So we do provide a better solution and do have to design wins with pure electric buses..
Alex Potter - Piper Jaffray
Okay. So I guess that basic takeaway is I mean, maybe it's not 100% of the electric buses that are being sold in China, but at least some material percentage of them should have ultracaps is that fair?
John Warwick - COO
Yes, that's a fair statement.
Analysts at Imperial Capital boosted their price target on shares of Atmel (NASDAQ:ATML) from $10.00 to $11.00 in a research report issued to clients and investors on Monday. The firm currently has an “outperform” rating on the stock.
The first batch of 160 plug-in hybrid buses by Xiamen King Long has been delivered to Yancheng Public Transport Company on 2nd July 2014. With 102 hybrid buses that started operation since the end of last year, these buses, including 40 units of 12-meter plug-in oil-electric hybrid buses and 120 units of 10-meter plug-in oil-electric hybrid buses, makes Yancheng Public Transport Company one of the forerunners in promoting new energy buses in Jiangsu province.
Considering the low speed and frequent switch on-off of city buses, XMQ6127GHEV19, the bus model of 40 plug-in hybrid buses of this batch, adopts the hybrid controlling system and the dual energy storing technology. The new model can ensure the energy supply, prolong the battery life and reduce the oil consumption. It signifies the transition of Xiamen King Long from the traditional hybrid bus model to the plug-in hybrid platform with the debut of the novel new energy buses.
According to sources on 2nd July, the central government has allocated a subsidy of 0.35 billion yuan to Henan province for the promotion of new energy buses in the first quarter of 2014. It will be only used to help Zhengzhou Yutong with its promotion of new energy buses in Henan province and other areas in China. Up to 1,288 units and nine types of vehicles will benefit from the special fund.
According to the latest statistics, in the first four months this year Yutong has sold over 1,400 new energy buses, which account for half of the new energy bus sales volume in the whole country. Its cumulative sales volume therefore has already reached 8,200 units.
New energy buses are defined as pure electric (EV), plug in hybrid electric (PHEV) and fuel cell. There will likely be far more PHEVs than EVs and very few fuel cell buses. Also the 4000 figure stipulates by the end of 2015 where the current subsidy program runs through 2016.
Guangzhou will introduce new policies that new energy buses will be able to share the present bus paths and they will be unrestricted by the license plate rule.
According to the suggestions, the new energy buses in the whole Pearl River Delta region will amount to 45,000 units, including 10,000 for Guangzhou, 25,000 for Shenzhen, 1,500 for Zhuhai, 2,000 for Foshan, 1,500 for Huizhou, 2,600 for Dongguan, 1,500 for Zhongshan, 450 for Jiangmen and Zhaoqing respectively.
The suggestions require that the promotion of new energy vehicles shall be carried out in full scales in the city clusters of the region. The new and replaced new energy buses shall not be lower than 30% of the vehicles used by the departments such as public transportation, public affairs, logistics, environmental sanitation. Each municipal department shall set up purchasing plan according to their own situation to ensure the 4,000 pure electric buses in the region towards the end of 2015.
Considering the government policy and market demand, Yutong chooses the technical development path of pure electric buses and plug-in hybrid buses. It aims at selling about 20,000 above mentioned buses, which will account for 20%-30% in the whole annual sales of 2015. Bearing that in mind, Yutong has already independently developed a series of core technologies and products for the new energy buses. At present it has already completed a full range of products from 6 to 14-meter, and obtained the relevant notification as well as allowance catalogues. Its products have covered various sub-markets, such as transportation for the public, the tourists, the organization, the special purposes and so on.
According to Yutong, the pure electric E7 bus, which made its debut in May this year, was a milestone in its history. The number of spare parts has been lowered 57%, the recharging could be completed with daily facilities, and the operating cost for one km was just 0.3 yuan. Having solved the issue of operating cost, recharging problem and reliability in the promotion of electric buses, E7 has become an innovative product that could change the market pattern, especially that of the new energy buses.
It can be predicted that the annual demand increase for the buses will be around 7%. With a rapid increase for the new energy buses, there will be a booming market lying ahead. According to sources, the market target for Yutong’s energy saving and new energy buses will be fully covering the market for the above mentioned buses in 2015.
They aren't actually paying income taxes yet but accounting for them. They recorded most of their remaining tax credits in q4 last year which is why q4 2013 earnings were $1.24 vs the non-GAAP $0.35 most often referenced. They do pay the Korean royalty tax but won't actually be paying US federal taxes for a couple years even though they account for them in their earnings statement.