China’s currency woes have discounted this automobile company’s shares, providing an undervalued buying opportunity. Kandi Technologies Group Inc. (KNDI) from Top Stocks under $10 Kandi Technologies Group Inc. (KNDI) reported a 46% rise in second-quarter revenue as the Taiwan-based company continues to bring its electric cars to more vehicle-share programs in China. Adjusted earnings per share were $0.17, a gain of 32%. In addition, the company’s joint-venture agreement (to manufacture and sell vehicles and parts) with a subsidy of Volvo owner Geely reported an 8.1% increase in vehicles delivered to 4,446. Meanwhile, KNDI’s electric-vehicle parts sales surged 168% year-over-year to $46.6 million. KNDI is largely focusing on rentals and ride-sharing to help the pollution and congestion issues facing major Chinese cities. A traveler who arrives by train can go to one of KNDI’s automated garages, conveniently located near rail stations, where hundreds of pre-charged electrical vehicles are available to rent. The stock has been hit by jittery Chinese retail investors indiscriminately selling on fear, but the company’s quarterly report shows that KNDI is still performing, growing its base and penetrating new markets. KNDI does most of its business in China, so it’s not going to feel a big impact of a lower currency. On the positive side, the company also reported receiving a $59.6 million government subsidy, which will help shore up its balance sheet and provide working capital. Price Target: $12. Mandeep Rai, Top Stocks under $10, published by Money and Markets, a Division of Weiss Research, Inc., www.moneyandmarkets.com/services/trading-services/top-stocks-under-10, issues@e.moneyandmarkets.com; 1-800-291-8545, August 10 and 14
