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RockyMtnHiiigh

RockyMtnHiiigh
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  • A Different Case For Valuing Kandi [View article]
    Every time I tried to post it said there was a server error. So, I didn't think I'd been successful at all. But, as it turns out - SA posted each time.

    So - sorry for the triple post:(

    Rich
    Aug 20 11:36 AM | Likes Like |Link to Comment
  • A Different Case For Valuing Kandi [View article]
    Two recent developments affecting Kandi..

    July Production 2,021 EVs equals 50% of Market Share...
    http://stks.co/r0h3Z

    Shanghai Pilot Launched.....
    http://stks.co/t0gpS "
    The first product launch for Kandi in Shanghai. The Shanghai government seems to be firmly behind Kandi's "Micro Bus" business model. Shanghai's population is 3.5 times larger than Hangzhou.
    Aug 20 11:28 AM | Likes Like |Link to Comment
  • A Different Case For Valuing Kandi [View article]
    Two recent developments affecting Kandi..

    July Production 2,021 EVs equals 50% of Market Share...
    http://stks.co/r0h3Z

    Shanghai Pilot Launched.....
    http://stks.co/t0gpS "
    The first product launch for Kandi in Shanghai. The Shanghai government seems to be firmly behind Kandi's "Micro Bus" business model. Shanghai's population is 3.5 times larger than Hangzhou.
    Aug 20 11:28 AM | Likes Like |Link to Comment
  • A Different Case For Valuing Kandi [View article]
    Two recent developments affecting Kandi..

    July Production 2,021 EVs equals 50% of Market Share...
    http://stks.co/r0h3Z

    Shanghai Pilot Launched.....
    http://stks.co/t0gpS "
    The first product launch for Kandi in Shanghai. The Shanghai government seems to be firmly behind Kandi's "Micro Bus" business model. Shanghai's population is 3.5 times larger than Hangzhou.

    GLTA
    Aug 20 11:26 AM | 2 Likes Like |Link to Comment
  • Kandi +5.8% after announcing Shanghai EV deliveries [View news story]
    For those of you who are looking to get a better understanding of Kandi's businesses. I would recommend starting with......

    Michael Nguyen's well researched article "Kandi Technologies - Focus On Growth"
    http://seekingalpha.co...

    Here are Michael's updates on the CarShare and Leasing businesses....

    Kandi Car-Share Update

    In June, I mentioned in an article ChinaEV.org reported that there were twenty-three Car-Share locations in operation, including seven multi-level smart garages and sixteen flat locations. Also reported was Kandi JV was in the process of signing contracts with as many as twenty high-end hotels in Hangzhou to add Car-Share stations. Car sharing demand in Hangzhou has picked up tremendously after the city imposed internal combustion engine (NYSE:ICE) license place restrictions in March and since then, each month the chance to win a car plate becomes slimmer.

    Kandi's press release dated July 30 confirmed that "At present, ZZY has a total of 50 stations within the Hangzhou Car-Share network, including on-street stations, high-end hotel EV charging/parking stations, and smart vertical charging/parking garages." This came after the company affirmed that it has full support from Hangzhou's government to roll out a total of 100,000 cars in Hangzhou alone over the next four to five years as originally planned. Reporter Chen Xiaobo of Xinhua Hangzhou reported on August 3rd that Kandi JV is building 40 Smart garages and 100 flat sites in Hangzhou this year.

    Meanwhile, Kandi is entering the pilot program of the City of Wuhan with its pilot Car-Share program. In addition, the on-going discussion between Geely (OTCPK:GELYF) and Chengdu Mayor for over a year now is finally making good progress, as reported by China News.

    All eyes will be on Kandi for the upcoming earning release on August 11, not only for its second quarter revenue and earnings report, but also for any hint on its Car-Share pilot progress in Shanghai, in which the company will deliver 3000-5000 EVs to the city by the end of this year.

    Kandi Group Leasing Update

    As I reported in June, Kandi JV launched its group leasing program on May 28, when it delivered 707 PEVs to Xiangshan community residents who signed up for the three-year, effectively free government subsidized lease. In addition to residential communities, Kandi has been quickly adding enterprises to its long lease listing. To date, more than 2,000 cars have been delivered to various communities and corporations, with a waiting list of more than 1,400 residents and growing. In order to meet growing demands, Kandi requires a minimum of 100 EVs per community, and each group entity is now responsible for its own charging facility, but ZZY still provides each group entity with a maintenance service team for any technical support.

    With the new government's mandate requiring that electric cars must make up at least 30 percent of government vehicle purchases by 2016, it is anticipated that Kandi will begin enjoying increasing demands for its EVs from government entities soon.
    Aug 18 04:15 PM | Likes Like |Link to Comment
  • Kandi +5.8% after announcing Shanghai EV deliveries [View news story]
    Thanks Dampflok,
    I should have been more clear when explaining Kandi's take on each EV sale.
    Here's a very simple example of how Kandi gets approximately 75% of the Sale of each EV.
    Kandi sells most of an EVs parts to the JV for $10,000. Kandi books 100% of the $10,000.
    The parts Kandi sells become COGS for the JV.
    The JV sells the finished EV to ZZY for $20K. Kandi owns 50% of the JV, so it gets $5,000 of the incremental $10,000.
    In Total Kandi gets to "book" $15,000 of the total Sales Price of $20,000. So 75% of the SP.

    Cuttail's explanation is much better though...
    http://bit.ly/1sWMtHb

    In this hypothetical example, let us assume that Kandi Technologies sells an EV parts kit for $10,000 to the JV. Let's also assume that after manufacturing this EV, the joint venture company (Kandi Electric Vehicle, whichever provincial plant it is made at) sells this car to the end user for 50% more at $15,000. The end user in our case will be the company ZZY, which is where the cars are currently going, as Kandi does not yet sell to individual private citizens. Government subsidies will be included with an example of $8,000 national PRC subsidy and a $7,000 local subsidy (local subsidies are supposed to more-or-less match the national ones).

    To summarize we have these players in our little thought experiment:

    Kandi Technologies: sells EV parts kit for $10,000.
    Kandi Electric Vehicles (The Joint Venture aka 'JV'): Buys EV parts kit for $10,000 and sells completed EV for $15,000.
    ZZY Company (End User): Buys the car for use/rental project.
    National Government: Subsidizes $8,000 for produced EVs with sales agreement.
    Local Government: Subsidizes end user $7,000 on purchase of EV.
    How do all of these players come together? This all begins with Kandi Technologies (through Zhejiang Kandi Vehicles), who will sell its parts directly to the JV for the up-front cost of $10,000. Therefore they gain $10,000 of revenue. This will be the predominant source of revenue for Kandi Technologies in the EV-related business. The JV then manufactures this EV through the kit it just purchased. On production and sale of the EV, the national government subsidizes $8,000, paid directly to the manufacturer (JV). (This national government subsidy is theoretically paid quarterly and in advance per Chinese briefings, with reconciliation between the manufacturer and government at the end of each fiscal year. However, the subsidies are currently being paid in a retroactive fashion, and the JV recently received its first subsidy in the amount of $31.8 million for vehicles produced in 2013 and Q1 2014). http://bit.ly/1oV1KmM The amount of the national subsidy for low-speed EVs is publicized to Chinese end-users. They know that the JV is provided $8,000 for the car, so when the JV sells the completed EV to ZZY for $15,000, this $8,000 dollars is subtracted from the sale price. Now ZZY is charged $7,000 for the completed EV as opposed to $15,000 because the national government has assumed part of the cost.
    Aug 18 04:09 PM | Likes Like |Link to Comment
  • Kandi +5.8% after announcing Shanghai EV deliveries [View news story]
    Dampflok,
    You are MISSING the BIGGEST reason smart speculative investors should own Kandi stock (and hold it for many years)........ Not only does Kandi own a 9.5% interest in ZZY, the leasing/rental company. It's JV sells ALL of the cars to the rental/leasing company (ZZY).

    The MAIN REASON an investor would want to own Kandi stock - is because the JV that they share a 50/50 ownership with Geely sells ALL of the EV's to ZZY. Kandi books 100% of the partially built EVs it sells to the JV, AND books 50% of the Net Income of EV's the JV sells to ZZY.
    In total Kandi gets to book 75% of the Net Income (50% + 25%) of each EV sold into ZZY, the leasing/rental company.

    Shanghai's goal is to have 3,000 to 5,000 EVs in this program by the end of 2014. Considering that Kandi only sold approximately 4,000 EVs in all of 2013, Shanghai alone would match Kandi's total sales from last year! Add in the EVs they are selling to the successful leasing and rental programs underway in Hangzhou - and Kandi should show killer growth in 2014. btw - this is before adding in any other markets Kandi is currently developing pilots with.

    To learn more about how Kandi's business OPERATES - Look at this excellent article by Cuttail07......
    http://bit.ly/1sWMtHb

    For a Great summary of where Kandi's business CURRENTLY is and where it's going - see this excellent summary by Gerald Klein....
    http://seekingalpha.co...

    A great summary of Kandi's GROWTH PROSPECTS can be found in Michael Nguyen's article......
    http://seekingalpha.co...

    IMO - Kandi Techologies (NASDAQ:KNDI) is TRULY a ONCE IN A LIFETIME STOCK. But, don't take my word for it - do your own DD. If you like what you see then join the many Kandi investors (who have already done rigorous DD) on the private Yahoo Group Forum.

    Best of Luck to you, Rich
    Aug 18 01:48 PM | Likes Like |Link to Comment
  • A Different Case For Valuing Kandi [View article]
    Kandi's future continues to get brighter and brighter. Here are two news reports that show bullish business growth......

    July EV production was reported. The Kandi/Geely JV produced 2,021 EVs. Which is double it's June production and is 50% of market share (out of 4,035 total EVs).
    Headline and Excerpt:
    Condit scored zhongtai pure electric vehicle production in July to double back first
    EV passenger car production hit a record high of in July, 4,035 units produce pure electric passenger car all month, and rose 6.83%. Condit-mini output in July up to 2021, the chain doubled, lead Thailand back to the first.

    Link (use Google Translate): http://stks.co/s0fqu

    Pilot of Kandi's Shanghai leasing program is announced, 208 EVs.
    Headline and Abstract:
    Condit electric "micro-bus" and the next city Shanghai started trial operation
    The first electric network Du Junyi 2014-08-14 18:38:04
    [Abstract] first 208 Condit EV "micro-bus" was put into operation in Shanghai. Condit said electric vehicles, making operations in Hangzhou "micro-bus" promotion, will be replicated in other cities started.

    Link (use Google Translate): http://stks.co/t0ft4
    Aug 15 03:57 PM | 4 Likes Like |Link to Comment
  • The Case For Valuing Kandi [View article]
    Kandi's future continues to get brighter and brighter. Here are two news reports that show bullish business growth....

    July EV production was reported. The Kandi/Geely JV produced 2,021 EVs. Which is double it's June production and is 50% of market share (out of 4,035 total EVs).
    Headline and Excerpt:
    Condit scored zhongtai pure electric vehicle production in July to double back first
    EV passenger car production hit a record high of in July, 4,035 units produce pure electric passenger car all month, and rose 6.83%. Condit-mini output in July up to 2021, the chain doubled, lead Thailand back to the first.

    Link (use Google Translate): http://stks.co/s0fqu


    Pilot of Kandi's Shanghai leasing program is announced, 208 EVs.
    Headline and Abstract:
    Condit electric "micro-bus" and the next city Shanghai started trial operation
    The first electric network Du Junyi 2014-08-14 18:38:04
    [Abstract] first 208 Condit EV "micro-bus" was put into operation in Shanghai. Condit said electric vehicles, making operations in Hangzhou "micro-bus" promotion, will be replicated in other cities started.

    Link (use Google Translate): http://stks.co/t0ft4
    Aug 15 03:52 PM | 1 Like Like |Link to Comment
  • The Case For Valuing Kandi [View article]
    A good question.
    I'll answer part of it...on Page 40 of the 10-Q there is a Revenue schedule that breaks out revenues and units sold by product.....

    Here are the Average Sales Prices for EV Products sold by Kandi to the JV:
    1Q 2014 ASP = $14,000
    2Q 2014 ASP = $14,500

    The JV then finishes assembly of the EV and sells them to ZZY.
    Aug 13 02:29 AM | 1 Like Like |Link to Comment
  • The Case For Valuing Kandi [View article]
    SodaKing,
    Well you are a little bit correct.....Kandi's ownership in ZZY, the CarShare owner and operator, is 9.5%. So - Kandi will not see much of the earnings from it's share of ZZY.

    WHAT YOU ARE NOT MENTIONING THOUGH IS.... that ZZY buys ALL of it's EVs from the JV. Kandi owns 50% of the Joint Venture. But most importantly Kandi sells EVs (EV Products) to the JV. In the first six months of 2014 Kandi sold 1,513 units for a total of $21,617,300 for an average sales price of $14,288.

    Investors who have done their DD on Kandi - own it because it sells all of the EV's to the CarShare and Leasing programs. And takes the profit from those sales (50% of the JV's profit, 100% of Kandi's). They DON'T own it because they expect huge profits from their 9.5% share in ZZY.

    How many times must this be explained to you? If you truly care to educate yourself on Kandi's business - this InstaBlog posted by Cuttail07 is well written, researched and accurate..... http://bit.ly/1sWMtHb
    Aug 12 11:27 PM | 4 Likes Like |Link to Comment
  • The Case For Valuing Kandi [View article]
    The CarShare program is truly impressive and it's prospects just keep getting better......

    Kandi Carshare

    In June 2013, KNDI launched Carshare (aka "Micro Bus"), a personal, intracity, EV transportation system that provides EV rental service at a cost less than a taxi, while resolving the issues of range anxiety, ownership, insurance, battery charging, parking or garaging, and environmental disposition of batteries. Carshare provides EV rental at airports, train stations, hotels, business centers, selected residential areas, any place that is the focus of commuter traffic.

    Carshare was launched in Hangzhou, the fourth-largest metropolitan area in China with a metro population of 20 million, and since has launched in Shanghai. KNDI is in discussion with Beijing, Chengdu, Zhuhai, Chongqing, Suzhou, Nantong City and other cities about initiating Carshare.
    Aug 12 07:49 PM | 4 Likes Like |Link to Comment
  • The Case For Valuing Kandi [View article]
    SodaKing, If you actually followed the EV market at all - you would know......

    While the $7,500 EV subsidy in the US has been in place for years now (therefore sales of EVs in the U.S. have been benefiting from it for sometime now).

    China has RECENTLY put in place MANY policies that will cause a profound shift in the China automobile industry - from purchase ICE vehicles to EVs. Here are a few of them.....
    - Per EV subsidies of approximately $15,000 (Central and local gov's) per EV. Note: The sales price of Kandi's 2-Door model is approximately $16,000 making the consumers net sales price only $1,000.
    - Many cities are restricting the number of ICE licenses. While EV licenses are unlimited AND FREE.
    - Day-of-week restrictions for ICE vehicles. Where as EVs can be driven any where at any time AND get to drive in HOV/bus lanes.
    - EVs are exempt from a 10% sales tax.
    - Electricity rates are now capped for charging of EVs.
    - Some cities even exempt EVs from paying bridge tolls.

    In summary - Chinese governments (central and local) are making it exceedingly obvious to Chinese consumers that owning, leasing or renting an EV is better/smarter than owning an ICE vehicle.

    AND - China NEEDS for the shift to non-polluting EVs to happen, and will do what ever is additionally necessary to ENSURE that it does.
    Aug 12 01:32 PM | 7 Likes Like |Link to Comment
  • The Case For Valuing Kandi [View article]
    I agree with your assessment that - Kandi seems to be very well positioned to take advantage of the huge market demand for MICRO EVs, recently announced subsidies AND the 10% sales tax exemption.
    A couple of Kandi's many advantage are..... they are a China made PURE EV producer and have been first to market with innovative leasing and CarShare business models....

    And, Gerald - Thanks for explaining Kandi's MARKET POTENTIAL with some easy to understand analogies.....

    First to Market:

    As an early-mover in EVs in China, KNDI's market potential is huge. China's population of approximately 1.36 billion is slightly less than the combined populations of the United States, Europe, and South America. Twenty-two Chinese cities have populations greater than 5 million. Seven have populations greater than 10 million, and three have populations greater than 20 million. The combined metro populations of Shanghai and Beijing, about 42 million, exceed the population of California.
    Aug 12 01:06 PM | 3 Likes Like |Link to Comment
  • The Case For Valuing Kandi [View article]
    Unlike TSLA, KNDI's market cap hovers near $800 million, while TSLA boasts a market cap of $32 billion, over 40 times greater than KNDI as of today.

    Amazing isn't it?? For Tesla's Model S minimum price is approximately $70,000 after federal subsidy of $7,500. While the net price of a Kandi 2 Door is approximately $1,000 after federal subsidies of $7,600 and matching local subsides of $7,600 equaling total subsidies of a whopping $15,200.

    What percentage of the population can afford a $70,000 Tesla Model S. 2% at the most?

    While what percentage of the 1.36 million Chinese can afford a $1,000 Kandi EV? Well, even with the more modest wages they earn - most anyone can afford $1,000 something as essential as a car.

    With this said - Tesla's market share being 40Xs Kandi's - shows an enormous relative undervaluation.
    Aug 12 11:05 AM | 11 Likes Like |Link to Comment
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