Positive waves to consider this Memorial Day weekend. I listen carefully to what company officers telegraph forward with respect to future earnings/revenues/momentum. In the Q1 summary, CEO George Pan stated very clearly what the companies expectations are going forward. He didn't suggest maintaining robust growth for months or quarters, but rather years. I take this is a bullish indicator. As I am new to HPJ, I am not certain as to whether this type of statement is thrown into each quarterly summary to simply express optimism for the future, but taking it at face value, it's a confidence booster. First Quarter 2017 Highlights
Net sales for the first quarter of 2017 increased by 43.9% to $41.9 million from $29.1 million in the prior year period. Gross margin for the first quarter of 2017 increased to 23.7% from 20.2% in the prior year period. Net income attributable to the Company for the first quarter of 2017 was $2.5 million, or $0.17 per diluted share, as compared to a net loss attributable to the Company of $0.3 million, or a net loss of $0.02 per diluted share in the prior year period. Mr. George Pan, Chairman and CEO of Highpower International, commented, "We are extremely pleased to have delivered another quarter of strong top- and bottom-line results in the first quarter of 2017. Importantly, growth in our lithium ion batteries business, including battery solutions, continued to accelerate driven by demand for energy storage systems, smart wearable devices, and other digital products. Looking forward, we will continue to invest in areas that are critical to our business and capture the market opportunities ahead of us. With our solid product reputation and business foundations in the industry, we are confident that we will be able to maintain our strong growth momentum and continue to develop our business for years to come."
This company has very strong potential and have been following it for the past 2 ½ years.
My attention to HPJ was drawn when I was working on an anti-trust case against nearly thirty of world’s major battery manufacturers for price fixing. Some of the main companies, among other, were Sanyo, Sony, Mitsubishi, Toshiba, Hitachi, and Kyosera. There were also Chinese companies who were involved, such as BYD and Simplo who at the time were sub-contractors and, now, strong competitors in the market.
HPJ was also a major sub-contractor for Samsung and LG for the main manufacturers and was gradually entering the supply business. I realized that it has an edge over the others because of their access to certain minerals only found in China that are indispensable components for the production of the batteries.
Bottom line: HPJ will be a major competitor in battery manufacturing business.
Hey EPJ where do the stock price closes in 2017? Any guesses? What is your EPS projection full year 2017? Always trades at a low multiple of about 8. At this point I see top stock price of 6.50 this year. Thoughts?
Anyone have an idea as to when the following proceeds with be received. Can we expect some of this to be reflected in Q2? Thank you. Highpower's potential benefits from the transaction include:
Approximately RMB20 million (approximately $2.9 million) of potential investment income from 2016; Approximately RMB45 million (approximately $6.5 million) of investment in equipment will be returned in cash; Yipeng will pay to Huizhou Highpower approximately RMB50 million (approximately $7.3 million) related to outstanding accounts receivable; and With the cash received from the transaction, Highpower plans to invest more capital in R&D as well as additional production capacity for batteries, including power cells for electric vehicles.
Attention is deserving in regards to the latest insider sale. It is substantial. Why these insiders don't simply disclose why they sold is a mystery to me. If it were for a legitimate reason that would not impact shareholders, why not? Something to think about folks.
El Paso Jet, Reading your input on HPJ, you seem to be HOT and COLD. Why t he extremes? Thank you.
El Paso Jet
We might see a breakout in YUAN (RMB) next week, they closed at 6.84 RMB: $1USD and set a 4 months high. SHIBOR ran up to 7.75% overnight and spread of 10 years note is 1.44% between China and US. Moody down grade on rating to A+ from AA-3 did not affect the climb of the YUAN.
Good Morning, El Paso Jet, I know you are optimistic on the Yuan's value going up, but there is the other side of the coin. Lots of talk out there about the Yuan becoming a free floating currency. Beyond that, there is the possibility of a full blown trade war with the US complements of the new administration. Lots of think tanks out there strongly believe the Yuan's value relative to the US greenback will continue downward for 2017 and 2018. Deutsche Bank says that the Yuan may devalue by 17% in 2017 alone. Any additional thoughts?
El Paso Jet
Baseball News Source just printed MA's 400,000 shares of insider selling and claiming that analyst's projected earning for 2017 is 35 cent with 17 cents earning in first quarter. More like article is to tell retail to get out. Those estimate lacks accuracy Othman than telling investors that HPJ financial will go downward as we already know HPJ have already earned 61 cents TTM and EPS for 2016 was already 40 cents and basher is showing up at Stocktwits telling others to get out.
With ETA profit of $2MM and first quarter earning of $2.5MM, HPJ have already earned $4.5MM or EPS of 30 cents a.ready. There is real analyst officially covering HPJ and this article talks as if professional expect a bad year for HPJ with an estimate of 35 cents with no estimate on revenue.
Welcome to professional shorting scheme, I was surprise that they haven't shown up yet to trash HPJ. The are detail in insider's selling but short in explanation on estimate detail on EPS of "THIRTY FIVE CENTS".
Same old technique, but it works like a charm because it doesn't more than a few million dollars worth of shorting to push the stock price down. If Pan wants HPJ get a fair evaluation, he needs to plays the PR right to counter the dark side of heavy market manipulation.
There is a new investor presentation on HPJ website and I am glad they corrected some inconsistency with the revenue of Lithium which I pointed out and emailed to the IR person. They are identifying their market with words like "growing" and "exploding". You can tell that this presentation will be used next month at the Marcum New york presentation. Coincidentally our Auditor's firm name is also Marcum.
Gukaso, El Paso and others. Any comments on this. Hard to take this as a positive. Thank you. China’s lithium-ion battery makers are poised to cut prices by as much as 40 percent this year in response to electric-vehicle subsidy changes.
The cuts are unlikely to affect global battery markets, according to Logan Goldie-Scot, head of energy storage analysis at Bloomberg New Energy Finance. “It’s not that it’s a 30 to 40 percent cut on the benchmark global prices that we’re seeing elsewhere,” he said.
Instead, Chinese lithium-ion battery manufacturers are having to slash margins on nationally sold products to account for reductions in electric vehicle subsidies that came into effect in January.
“The 2017 subsidy is a steep 30 percent lower than the 2016 subsidy at the national level,” said I-Chun Hsiao, a BNEF analyst in Tokyo. “Provincial subsidies are also being cut.”
The electric vehicle subsidies had previously allowed a small group of government-approved Chinese battery makers to get away with charging a premium for their products.
This contrasts with global markets, where “we have seen pretty aggressive lithium-ion cost reductions over the past 16 to 24 months,” said Brett Simon, an energy storage analyst with GTM Research.
Last year, the Chinese government withheld state subsidy certifications from two of the world’s largest battery makers, LG Chem and Samsung SDI of South Korea, in a move that narrowed the field of potential suppliers to China’s burgeoning electric vehicle market.
SK Innovation, another South Korean battery original equipment manufacturer (OEM), also missed out on certification in the scheme managed by the Chinese Ministry of Industry and Information Technology (MIIT).
This company has great financials but terrible stock action. Guess I will have to wait another 90 days until it gets back to $5+.
Good evening gentlemen, I had a feeling this was going to pull back and it appears I was correct in my 'guesswork'. El Paso Jet, I did purchase some shares today. Before going to work I put in a limit order at 4.60 and sure enough, it got filled. My initial thought was to put it in at 4.30 but with a desire to stake a claim, and made a compromise and opted for 4.60. So it's official, I'm now with you all as a HPJ shareholder. I will admit to the fact that I am uncomfortable with this being a Chinese company for one, an ADR for two, and in an area that is highly competitive for three. But, the numbers don't lie if they are truthful and HPJ is performing nicely to the bottom line. Gukaso, you mentioned that the VP insider has recently sold over 300 thousand shares. What I get from Google Finance is one PR informing of a 50 thousand share sale. Can you clarify please. Additionally Gukaso, you are incredibly bullish on this company with a price target of 10 dollars in the second half. I realize you have visited their facility and have contact with their IR and more. Can you offer more in depth insights into how you are deriving a double digit price target from here? I would appreciate that very much. It's easy to cast out optimistic numbers but it's nice to know that your projection is based on something real as in sizable new pending business contract or expansion on existing contracts. Sunny Pan did indicate that the rising cost of Lithium can influence margins. I have no idea where the Lithium market is going but something else to consider. As far as explaining the VP of manufacturing's sale of shares as being for 'personal reasons', well that's a nice tidy pat response. In the end, all sales are for 'personal reasons'. If you want my opinion, he knows something and this may well be the being of another downward price cycle for the stock. The chart shows these as a reoccurring theme so yet another thing to think about. This upcoming investor conference has my interest. Can anyone tell me where it will be, who will sponsor it, and will it be well attended? It's clear this company has been in the battery game long enough to make it a reputable company. Other concerns are the cost to expand their factory to accommodate battery production for the electric vehicle market. This will not come cheaply, and it would bode well for the company to continue to expand revenues/earnings to offset the R&D costs associated with this expansion effort. Anyway gents, the floor is yours. My knowledge of this company is extremely limited. Many of you know much more and what you are willing to share honestly and openly is welcomed with open arms. What interesting about HPJ is the Investor's Business Daily draws attention to the company through their Canslim evaluation process. This is how I came to know about it. That being said, Canslim is a methodology derived from performance based on the past and not the future. So my stepping into HPJ assumes continued growth. Can anyone add to the why's of HPJ's ability to continue to grow the company and it's share price? There is a lot of risk associated with this stock, but it sure would be wonderful if the company's management truly has got their act together and can deliver. The conference all was short and sweet. A lot was lost in translation. OK, will leave it there. A good night to my fellow HPJ shareholders. Good to be here with you.
El Paso Jet
Wen Wei Ma, age 47 and has been with the company since July 2002 when they still a private company (15 years). He has 6% or 900,000 shares at the end of 2016. I am guessing his annual salary of $140K. Li joined the company in 2007 and his salary was $171K in 2016.
Top three insiders' record per 10Q 2016:
Pang - CEO with 3.1MM shares (20%) Li - VP - Tech Director with 2.1MM shares (14%) Ma - VP Manufacturing with 900K shares (6%)
Ma now has 493K shares left after he sold 407 K shares as of today on record.
Gukaso: Do you know how many shifts HPJ runs? and what is the name of the N.Y. investor forum.?
El Paso Jet, Can you confirm who the new CFO for HPJ is. The website lists Sunny Pan as – Interim Chief Financial Officer and Corporate Secretary. Has he been officially promoted to full time CFO status?
The trading setup for HPJ looks very enticing. Do you guys find it difficult to know when to buy or sell something? I prefer to get my stocks from awesomeSTO-CKS.
Barring tomorrow (Friday), I believe the share price will begin heading North. It simply has to given the dynamics. Time will be the answer. I (along with many an investor) have been wrong, but this is my feeling.
Insiders selling, I'm a bit concerned!
El Paso Jet
Between 2015 and 2016, HPJ suffered earning loss of $7.5MM in profit due to currency translation. That is a loss of EPS of 24 cents in 2016 and 20 cents in 2015. China is going to open up their bond market to the world through Hong Kong on July 1 this year and it will generate demand of RMB in a big scale. RMB should appreciate, that will also help the bottom for HPJ this and next year also.
BTW with bond market expansion in Hong Kong, they will surpass Singapore financial market and chasing after US and Bristish financial market. Some is expecting the Hangseng index will set record with upside of 40% from here.