In their most recent coverage, Dutton Associates rated Kandi Technologies (NASD: KNDI) as a “strong speculative buy” with a price target of $6.72. The twelve-page report by Dutton’s senior analyst, Stanely Ng, can be found on the company’s website at www.jmdutton.com, which includes First Call, Bloomberg Professionals, Zacks, Reuters, Knobias, and other leading financial portals.
This report from Dutton follows Kandi’s announcement of their first quarter financial results ended March 31, 2008. The company’s total revenue came out to be $9.5 million, representing a 76.4% year-over-year from the previous year’s first quarter, and a 9.2% quarter-over-quarter increase from the fourth quarter of last year. The significant increase is attributed to the company’s excellent reception for their exciting line of go-karts, with management focusing on delivering more expensive, max-performance vehicles. This strategy can help improve margin and effectively alleviate the pressure of rising raw material costs on gross margin.
More encouraging news came when Kandi made public the launch of their high-mileage, off-highway, super mini-cars in the month of July. The company anticipates sales volume of 5,000 to 10,000 for these vehicles in 2008. The estimated selling price is around $4,000 per vehicle, which would give the company revenues of $20 million to $40 million from the super mini cars alone.
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