Argus Research Initiates Equity Research Report Coverage on Kandi Technologies Group, Inc. (NasdaqGS:KNDI)

COMPANY HIGHLIGHTS: Excerpts (as conveyed by Argus Analyst Steve Silver) include:

KNDI: An Emerging Global Leader in Off-Road Electric Vehicles and Battery Swap Technologies

• Successful Pivot to Off-Road Vehicle Categories: In our view, Kandi Technologies is successfully pivoting its business model to focus on off-road vehicles, including golf carts, utility vehicles (UTVs), and all-terrain vehicles (ATVs), and away from the saturated traditional EV market. We have a positive commercial outlook for Kandi's golf carts in North America, as well as globally, supported by a limited-edition collaboration with retail leader Lowe's with branding for the National Football League, which launched in fall 2024. We expect the golf cart line to expand across Lowe's footprint over time.
  
  
• Customizable Products in Robust Supply Chain: KNDI's vehicle portfolio is customizable to more than 20 models, which continues to be improved upon, and we see the products supported by an established supply chain in China and a solid intellectual property (IP) portfolio for product differentiation. We see the company establishing new manufacturing and production channels in the United States and, to a lesser extent, in Taiwan, helping to mitigate the impact of tariffs on goods produced in China. We see its diversified portfolio of parts across the EV value chain, some of which are not subject to the China tariff laws, supporting the growth strategy.
  
  
• Investments in Long-Term Growth Strategy: In October 2024, Kandi issued a 5-year growth forecast through 2029, which included smart mobility, which is poised to become a high-growth market in China. The company plans to invest $130 million to develop production lines in the U.S. for its off-road vehicle and lithium battery swap technologies, in order to enhance its supply chain in these areas, amid strong global economic demand trends.
  
  
• New Leadership to Execute: We see Kandi's leadership positioning the company to achieve its growth targets, as in October 2024, Kandi appointed Feng Chen as its new CEO, which we view positively given his strong background in lithium battery technologies. In addition, Chairman Xueqin Dong, Kandi's previous CEO, has extensive leadership experience in the EV market and is a thought leader in the space on electric vehicle infrastructure and safety, as a paper publisher and patent owner.
  
  
• Healthy Balance Sheet: As of September 30, 2024, the company had $260 million in cash, restricted cash, and investments, with a working capital surplus, on its balance sheet. As such, we see the company as well positioned to invest in its announced growth initiatives, including building supply chain infrastructure in the U.S., acquiring companies in growth industries such as smart mobility solutions, and buying back its shares, perhaps more aggressively than it has to date, amid protracted stock price weakness.
  
  
• Fair Value: We think that Kandi's fundamentals are strong and are not reflected in the company's valuation. As of January 2025, Kandi was trading below its balance sheet cash on hand, as well as its tangible book value and shareholder equity. We expect the company's valuation to begin to normalize as it executes on its growth strategy. Based on our forward enterprise value/sales analysis, we arrive at a fair value of $7.00 per share, well above current levels.

INVESTMENT THESIS: Click Here to view full Argus Equity Research Report and Investment Thesis.

About Kandi Technologies Group, Inc. (NasdaqGS:KNDI)                                      www.kandigroup.com

Based in Jinhua, China, Kandi Technologies Group Inc. (Nasdaq: KNDI) develops, manufactures, and commercializes fully electric vehicle products and related technologies, with primary commercial markets in the United States and the People's Republic of China (PRC). The company's product portfolio focuses on off-road electric vehicles (EVs), power electric motors and controllers, lithium batteries and battery packs, and battery exchange systems.

For more information please contact:

Kandi Technologies Group, Inc.
Ms. Kewa Luo
+1 (212) 551-3610
IR@kandigroup.com 

The Blueshirt Group
Mr. Gary Dvorchak, CFA
gary@blueshirtgroup.co   

About Argus Research Corp.

Headquartered in NYC, Argus Research (www.argusresearch.com) is a leading independent equity research firm (est. 1934)  ̶  providing fundamental and quantitative research coverage on more than 1,600 companies across all 11 sectors of the S&P 500, as well as macroeconomic and equity market forecasts, thematic research, model portfolios and IPO research.  In addition, Argus has recently committed to providing a company sponsored research solution for small & mid-cap companies seeking coverage.  Argus's CSR Research Reports & earnings estimates (if applicable) are available on major research / earnings estimate aggregator platforms, including Bloomberg, Thomson Reuters, Factset and S&P Global.

For more Information please contact:

Darrell Stone
646-747-5438
dstone@argusresearch.com   

Argus Research Co. has received a flat fee from the company discussed in this report as part of a Sponsored Research agreement between Argus and the company. No part of Argus Research's compensation is directly or indirectly related to the content of this assessment or to other opinions expressed in this report. Please refer to the full Argus report and the disclaimer for complete disclosures.

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