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China ETF GXC - the music ain't overRecently, the China market had dived on regulatory action over the past couple of weeks. It hit a low point way out of range, and then bounced back technically. And the past week saw a range bound attempt to break out. This attempt failed to extend the rally higher out of the range, but instead fell down to the range support. In the process, it left a gap support and held above this in a range. The weekly chart has a rather unique candlestick pattern, where a long tailed hammer body is engulfed by a down candle. This is ominously bearish. The Daily chart is no better, with a failed breakout, and a gamp down to follow through, ending the week at support with ailing technicals. A revisit to the last low is due... More downside incoming!
AMEX:GXC
by Auguraltrader
2
Farmmi Set to Capitalize on New Wellness TrendsStriving to vertically integrate its business, the company has been preparing for a major boost. ● Farmmi has a long record of unstable financial performance. ● The company's solid supply chain system and business model can integrate online and offline platforms and trigger potential future growth. ● Along with the public's increasing health awareness, Farmmi can seize more opportunities to build extensive global networks and explore new products, like fungi-based snacks. ● The share price of the company is currently hovering at low levels, which might provide investment opportunities in the middle term. Farmmi (FAMI:NASDAQ) is a Chinese agriculture products provider that mainly processes and sells, as of July 2021, four different kinds of products: Shiitake mushrooms, wood ear (or Mu Er) mushrooms, other edible fungi and other packaged dried fungi. The company runs both an e-commerce platform and offline stores. Founded in 2003 and headquartered in a small city in east China, Farmmi is experienced in forming alliances with local family farms that allow the company to offer products to restaurants, cafeterias, local specialty stores, as well as through distributors. Here, we analyze this small share opportunity and discuss the company's potential. Quality – volatile profitability and cash flow generation Farmmi's financials have lately been somewhat unstable. The revenue has been growing slowly – and even declined in 2020; operating income peaked in 2018 and has kept declining since. Farmmi's net income has also shown high volatility. Since 2015, the company has been reporting unstable and negative operating cash flows. Basically, it delivered unfavorable financials all the way after its IPO in February 2018. What is more, the company's capital expenditure kept growing, but the limited value has been generated, resulting in a downward-moving return on capital. Growth – optimistic trends and industry dividends Despite Farmmi underperforming in the past years, investors should not be overly concerned about the lasting effects on the company's future development. We believe the company has a more positive side on financial growth and cash flow stability that will reflect in its future growth. As mushrooms and fungi are categorized as 'wellness food,' Farmmi focuses on such products, exploring overseas markets. Now, 94% of the company's revenue is generated domestically, while 6% comes from international markets, including the United States, Japan, Canada and the Middle East. An insider has informed EqualOcean that Farmmi's top executives have recently been actively building networks and seeking major brand cooperation to further expand in the North American market this year. By May 2021, Farmmi had raised USD 7.4 million of post-IPO financing to fund its business expansion. What is more, with the decreasing price of raw materials and improving cost control capabilities, Farmmi is expected to report better operating margins. So far, the figures have never fallen below the peer average level. Unlike many traditional agriculture producers in the space, Farmmi has been utilizing trendy tools, like web-based products, to ensure its future competitiveness. The recently raised funds are leveraged by the company to enhance its e-commerce capabilities, IT and supply chain systems. These capital expenditures and the integration of online and offline business models may generate more income for the company. The entire industry will release more dividends for Farmmi as well. The Chinese fungi market has been constantly growing since the noughties, providing growth momentum for Farmmi. The health and wellness trend has also expanded the market capacity for mushroom and fungi-based snacks, which Farmmi is building its future strategy around. For most food companies, it is almost impossible to survive for over ten years without a solid supply chain system, technology support and cost and risk management abilities. Paying close attention to these aspects, Farmmi is poised to ride the global wellness trend with the increasing fungi consumption. Price Momentum – upward The stock of Farmmi seems to be currently undervalued. Without any warning signs in its financial performance, the share price has been going down since it went public in 2018, reached the lowest level ever. As a small Chinese food brand, Farmmi might have less recognition among global investors, and we expect this situation to continue in the near future. However, the big picture appears brighter, as the company its making progress in cost control, harnessing technology and has a lot of room for development – both geographically and scope-wise. For the full article with the charts, please visit the original link.
NASDAQ:FAMI
by EqualOcean
EVK "Fibbin" again?EVK hasn't been a stranger to big moves quickly. Nor has it been a stranger to the 382 Fib level either. Now the second time it's tested this area, EVK continues to fail to break and hold above it (as of right now). While there's still a clear uptrend with higher lows, there's a pretty important level that may be of interest right now which is the 50 fib line. It's in "no man's" land after today's spike and looking for some solid support is going to be important for longs. If it does settle around this level, it would be the first time it's established support above the 618 fib line in quite some time. We'll have to see how much follow-through, if any, is in play heading into August. "The main reason for this move comes as the China-based clothing supplier and retailer announced that it would be repurchasing roughly $5 million worth of its shares. 'We believe our stock is a good value, and the Board’s approval of this stock repurchase program is recognition of the long-term prospects in our Company’s intrinsic value and the undervalued price of our stock. Repurchasing stock underscores our commitment to enhancing shareholder value and demonstrates confidence in our business.' - The CEO of EVK, Mr. Yihua Kang. For some added context, Ever-Glory International is the first Chinese apparel company to be listed on a U.S. stock exchange. It offers several brands that cater to middle-high end customer markets. As a vertical company in this market, Ever-Glory is able to control all aspects of its day-to-day operations." Quote Source: 4 Hot Penny Stocks to Watch as August Turns Bullish
E
by PennyStocks101
Xpeng Delivered Record 8,040 Vehicles in JulyThe company plans to have the P5 officially available in the third quarter of 2021, with deliveries expected in the fourth quarter of 2021. XPeng Motors delivered 8,040 vehicles in July, its highest monthly delivery record, up 228 percent year-over-year and up 22 percent from June. The company's flagship sedan, the P7, delivered 6,054 units in July, the highest monthly delivery record since its launch, XPeng's data released Monday showed. Cumulative deliveries of P7 reached 40,612 units since its launch in July 2020. XPeng's compact SUV, the G3, delivered 1,986 units in July. As of July 31, the company's total deliveries for the year reached 38,778 units, up 388 percent year-over-year. XPeng previously said the P7 sedan with lithium iron phosphate (LFP) batteries has seen strong demand since its launch in March this year. Deliveries of the model began in May, with sales increasing 27 percent in that month compared to April. In March, XPeng announced the launch of the P7 and G3 with LFP batteries, with deliveries of the former starting in May and the latter in April. The new P7 is available in two variants a combined range of 480km. The new P7 is equipped with Xmart OS in-vehicle intelligence system, with the lower-priced version equipped with XPILOT 2.5 + automatic driving assistance system, priced from CNY 229,900 (USD 35,600). The higher-priced version is equipped with XPILOT 3.0 automatic driving assistance system, priced from CNY 239,900. Together with the newly released model with LFP battery, the XPeng P7 is now available in four models: rear-wheel drive standard range, rear-wheel drive long-range, rear-wheel drive extra long range and four-wheel-drive high performance. Their price range covers CNY 229,900 to CNY 339,900. This article was first published by Phate Zhang on CnEVPost, a website focusing on new energy vehicle news from China.
NYSE:XPEVLong
by EqualOcean
2022 Might Be a Winning Year for Xpeng – and the Stock Is FinallOn July 7, 2021, the company was listed on the main board of the Hong Kong Stock Exchange under the code '9868.' We estimate Xpeng's 2022 revenue to show the value of the stock. The methodology includes the forecast of sales of P7, G3&G3i and the upcoming P5 and SUV models. The results indicate that the stock is currently fairly priced Risks primarily come from supply chain and market regulation but remain controllable. With the current global chip shortage, most major auto OEMs have suffered from a lack of electronic supplies. Amid these concerns, China's EV sales are burgeoning, with light EV sales hitting 241,000, or 15% of total light vehicles sales in June, 2021. Among the country's EV pioneers, Xpeng (XPEV:NYSE) has recently presented some positive results: its half-year delivery number has surpassed last year's figure. This article presents a forecast of the company's EV sales in 2022 and evaluates its stock by analyzing each model of Xpeng and using the valuation multiples. Model-level breakdown P7 is Xpeng's hit product. Simplifying the modelling, we project the sales of P7 to increase by 184, 100 and 50 units month-on-month until 2023; 184 is the average monthly increase since the model's launch, while the incremental decrease is due to the upcoming P5 and 2022 SUV models. The average selling price will be around CNY 250,000, the same as in 2020. G3&G3i are the oldest models of Xpeng. The updated version G3i transformed into a more unified family design and attracted more sales. We estimate G3 and G3i will keep lifting sales volume by 46 per month during the same period. The average selling price will be around CNY 150,000 per unit. P5 will shoulder the company's expectations to become a family sedan. We estimate P5's first-month delivery number in October will be at around 1,000, referring to P7's data. Then the delivery figure will increase by 143 units per month, of which 100 will be at the cost of P7 sales declining, as the two models compete with each other, and 43 is organic growth. Based on the official price starting from CNY 160,00 to 230,000, we predict the ASP will be at CNY 190,000. Xpeng is planning to launch a new SUV model. The SUV has a family design 'X' logo that brings its length to 4,800 mm. The car design shares the same platform as the P7, the Edward platform. In addition, it will be equipped with premium specifications like XPilot 4.0 and air suspension. Some industry experts predict the price will be around CNY 300,000. We assume Xpeng will finish its launch day by September 2022. The first-month sale will be 300 units, which will increase by 145 units per month similar to the sales trajectory of NIO's ES6. Apart from EV sales, other services will account for 5% of total revenue. The 2022 EV sales won't be significantly impacted by the chip shortage. To sum up, Xpeng's 2022 revenue is projected to reach USD 4.3 billion (CNY 28 billion). Specifically, the company will sell 122,253 vehicles to make USD 4.1 billion topline, and USD 0.25 billion will be from other services. According to the Street's expectations, the stock is priced at 16, 8.8, 5.6, 4, 2.9 forward PS ratios by 2025. We select 9x as the 2022 multiples. Thus, the market cap will be USD 38.7 billion, around 10% up from the market cap on July 27, 2021. Risks Although the expectations for Xpeng are rather bright, the whole industry is facing the chip shortage problem – that is also the biggest threat to Xpeng. For NEV companies, production is challenging while orders are packed. Through our research, we found that most auto stakeholders in China expect the imbalance to last through 2021, affecting the global light-vehicle sales by 2.5-5.0%, but recover slightly in 2022. The edtech sector's regulatory update drove the recent sell-off in Chinese concept stocks. However, this crackdown won't be a long-term issue for EV innovators like Xpeng. According to Bloomberg, the government's motivation is to cut family workloads to turn the declining birth rates up. On the other hand, the 'Made in China 2025' scheme supports EV development radically. So the policy will rather play a positive role in the new energy vehicle market in the long term. Conclusion Up to the present, Xpeng has been on the right track, leveraging business through unified family designs, new stores opening, capacity boost and charging facilities build-up. The company's 2022 revenue would be a realistic basis for stocks to start. The most significant potential risk at present is the capacity problem caused by supply chain shortages. Investors should keep an eye on this topic in the company's upcoming Q2 earnings conference. For the full article with the charts, please visit the original link.
NYSE:XPEVLong
by EqualOcean
1
DIDI Global ideaAt the time of DIDI`s IPO i was tempted to enter this stock because i was listing to Jim Cramer`s blessing: 'I would try to get as many shares as you can'. i hope he didn`t. and i haven`t entered either because i considered the valuation too high for a company that last year had negative earnings, -10.84Bil. And in comparison i was listing to analysts saying that UBER will never be a profitable company. So why would i invest in the Chinese copy of a business that didn't find the path to profitability for so many years?! The funny thing is that after going down 55% from the IPO day, Jim Cramer reevaluated the Chinese stocks: "You can't own Chinese stocks"! :) I`m looking forward to read your opinion on Chinese stocks right now.
DShort
by TopgOptions
12
NIO-REVERSE HEAD AND SHOULDER, BULLISH WITH CONSOLIDATION1) LONG TERM REVERSE HEAD AND SHOULDER PATTERN, 2) BULLISH TREND WITH CONSOLIDATION BEFORE BIG BREAK OUT, 3) ANTICIPATED NEWS IS ALSO MENTION FOR BRIEF DETAIL, 4) ONE MAJOR FACTOR TO THIS IDEA IS THAT MARKET FACTORS WILL AFFECT THIS IDEA, 5) MY CONSERVATIVE PRICE TARGET IS 72 DOLLARS BY THE END OF DECEMBER 2021. ** I AM USING MY 10 YEARS EXPERTISE TO BREAK THE FORECAST ANALYSIS FOR YOU. I AM USING THIS IDEA FOR MYSELF. ** THIS IS NOT AN FINANCIAL ADVICE, JUST THE IDEA. ** SO GOOD LUCK. **IF YOU AGREE TO THIS IDEA THEN PLEASE DON'T FORGET TO LIKE THIS IDEA.
NYSE:NIOLong
by JD-EducatingTheInvesting
AiHuiShou: Company with Strong Closed-Loop Chain CapacityThe second-hand 3C platform is among the most promising businesses in the space in China. On June 18, 2021, Aihuishou was listed on NYSE under the ticker RERE by issuing 16.23 million American Depositary Shares (ADS). According to the company, 60% of the funds raised in the IPO will diversify services, and expand its AHS store network and sales. 20% will be used to improve technology capabilities further, and another 20% will be used for general operations. As the first ESG US-listed Chinese share offering, the IPO has attracted much attention. Founded in 2011, Aihuishou is one of China's largest second-hand computer, communications and consumer electronics (3C) platforms and one of the pioneers in the industry. After ten years of development, it now has four major business segments, realizing a C2B + B2B + B2C closed-loop value chain: C2B recycling platform (Aihuishou), B2B trading platform (PJT Marketplace), B2C retail platform (Paipai Marketplace), as well as its overseas business (AHS Recycle). On the supply side, the JD.com and Aihuishou offline stores attract stable supply. At the processing end, it has set up seven regional operation centers and 23 city-level operation stations in China for proprietary inspection, grading and pricing. At the end of the sales, the PJT Marketplace can ensure the products flow at high speed (shortening the flow time by three times), while the B2C platform can make the products go directly to the C-end to improve the profit margin. Aihuishou has completed six rounds of financing prior to its IPO. Many well-known institutional investors have great regard for the company, such as JD.com, 5Y Capital, IFC, Cathay Capital and Guotai Junan International. Before the IPO, JD Entities held 34.7%, being the largest institutional holder. 5Y Capital owns 14.0%, the largest VC investor, while Tiantu Investment and Tiger Global fund have 8.5% and 7.3%. Notably, in its IPO, two existing shareholders, JD and Tiger Global purchased USD 50 million Aihuishou ADSs respectively, showing an optimistic attitude towards its long-term development. Financials In 2020, Aihuishou achieved revenue of CNY 4.86 billion, up 23.6% year over year, and reported a shrinking net loss of CNY 470.6 million (CNY 202.8 million with non-GAAP adjustment). Then in the first quarter of 2021, its revenue surged by 118.8% to CNY 1.51 billion compared with the same period of 2020. It indicates a strong growth momentum of the company. Further analysis of the company's revenue structure, net services revenue is a bright spot. The proportion of net services revenue rose from 0.4% in 2018 to 13.5% in the first quarter of 2021. In 2020, the company's net services revenue reached CNY 614 million, with a CAGR of 627.7% since 2018. Net services revenue comes from charging commission fees to merchants and customers for transacting in its online marketplaces, and the increase of the proportion indicates it gradually wins market recognition and continuously refines its revenue structure. As for the primary revenue source, the company's net product revenue reached CNY 4.24 billion in 2020, up 13.8% year-over-year, remaining robust. High operating costs are serious problems for the company. In 2020, the company's costs reached CNY 5.35 billion. When deconstructing the costs, merchandising costs accounted for more than 70%, mainly consisting of the cost of acquired products coming through the AHS platform and inbound shipping charges for its product sales. Although we think that the rising costs reflect the company's expansion plan, the high cost may damage the company's profitability. Opportunities and threats The company's opportunities are obvious. First of all, Aihuishou joined a market with great potential. According to Aihuishou's prospectus, China's second-hand electronic products trading and service market has great potential. China's pre-owned consumer electronics transactions and services market size reaches CNY 252.2 billion GMV in 2020, and the market is expected to grow at a 30.8% CAGR to reach CNY 967.3 billion by 2025. Secondly, the company occupies a high market share and maintains a high growth. Its total GMV reached 22.8 billion, and the number of consumer products transacted on its platform reached 26.1 million for the twelve months ending March 31, 2021, up 66.1% and 46.6%, respectively, year-over-year. In the second-hand 3C trading sector, in 2020, The company’s GMV for electronics and the number of devices transacted on its platform were both ranking the top and greater than the following five largest platforms combined. At the same time, the profit model of the company's offline stores has been proved feasible. According to TMTPost, the early decoration cost of an Aihuishou offline store is estimated to be CNY 70,000 to 100,000, and the rent and salary expenses are about 30,000 CNY per month. Considering the average monthly sales revenue is about 600,000 CNY, and the gross profit rate is about 20%, the payback period of investing in such a store is less than three months. More than 98% of its stores have made profits, indicating that the company has a great chance to turn losses into profits in the future. However, there are two obvious threats or risks. First, the company does not have an advantage in the whole second-hand e-commerce market, though it is a leader in the second-hand 3C sector. According to Big Data Research, in March 2021, Xianyu (Idle Fish) and Zhuanzhuan occupied about 90% of the second-hand e-commerce market, with a total MAU of over 70 million. In contrast, the MAUs of Aihuishou only take less than 2% of the whole market, through two platforms with only 1 million MAU. Although its main competitors may focus on other kinds of second-hand products, high traffic on these platforms means they can encroach on Aihuishou’s shares easily. Another risk is that, before the IPO, the two founders sold their holdings at a discount, indicating a lack of confidence. According to the prospectus, founder and CEO Xuefeng Chen reduced 1,995,981 shares, and co-founder Wenjun Sun sold 600,645 shares in February 2021 in a series F with a price lower than the preferred shares. It may not be a good sign that the founders are selling their holdings at a discount when the company's operating cash flow is insufficient. Valuation and bottom line Considering that the company has yet to turn a profit and no Chinese ESG company can be used as comparable companies, we used EV/revenue ratios to analyze its valuation and picked five related companies: BQ, MKD MPNG.Y, PDD, and SECO. The average EV/revenue of the competition is 5.42x, while RERE's EV/revenue is 5.43x. Based on the valuation and the analysis of its opportunities and threats, we gave it a neutral rating. Further analyzing the strategies that it should adopt, we think the company may need to focus on the following two ways to maintain its industry advantage. First, helping to establish industry standards is a way out. Second-hand recycling is a specific non-standard industry. The second-hand pieces of 3C equipment sold online and offline are numerous brands and of uneven quality. The establishment of a relatively transparent price evaluation mechanism can stabilize its market share. Secondly, it is necessary to control C-end costs. In the second-hand e-commerce market, both users and sellers naturally gather on the top platforms. A higher user utilization rate will also reduce the marginal cost of each offline store, which we think is the key to turning losses into profits. Considering this IPO aims to develop new sales channels for the B2C platform and further improve the penetration rate of C-end purchases, we think it is a good omen and is worth further attention. For the full article with the charts, please visit the original link.
NYSE:RERE
by EqualOcean
50 Fib Level for CREGThis 50 fib level for CREG stock has been a pivot for months. No matter if it's broken out or slid lower, this area remains a magnet for the stock. With higher volume recently and a stronger uptrend on 7/19, 50 fib level is once again a point of interest and an important level to watch. Either way, it's come a long distance since it was on the list of penny stocks to watch . Something to keep in mind, however, is that the company gained approval for the Authorized Share increase from 10m to 100m ( 7/9/2021 8K filing ). That can sometimes mean they need more wiggle room in their share structure to issue more stock. In line with this, it can also mean dilution depending on the inspiration behind the AH increase. At the very least, it's something to keep in the back of your head if you've got CREG on your watch list right now.
NASDAQ:CREG
by PennyStocks101
SXTC back at an interesting level againSXTC had a big pop on 7/16 that took it up and through its 786 fib line. After doing a retracement using last September's lows, this level has shown to be an important pivot over the last few months. Late last year it was resistance in December and heading into the new year. Earlier on this year, it was broken through with the 618 fib becoming a very high traffic area that ultimately was support as SXTC broke out to over $5. The 618 level was a brief area of support in February that ultimately turned into resistance during the following months. If you take a look at where SXTC traded after there, the 786 area once again became a pivot area. Now that it's back above it with higher volume, it will be interesting to see if the 786 fib can establish itself as a new support or if this is just another headfake leading to another breakdown. "Based in China, SXTC is a pharmaceutical company developing traditional Chinese medicines. It manufactures, markets, and sells these products domestically, and is one of the only companies producing these types of compounds. The most recent news from China SXT came a few months ago when it announced a 4-1 reverse shares split. Since then however, not much news has come from the company. So while today’s gain may be inexplicable with press releases, we could attribute it to SXTX’s placement as a meme stock. This means that it is frequently discussed on social media sites such as Reddit and Twitter. While this does make it highly volatile, it also adds potential for large gains (and losses)" Quote Source: 4 High Volume Penny Stocks to Watch in July 2021
NASDAQ:SXTC
by PennyStocks101
AMC - Shadow Banking and Meme StocksIdea for AMCs: - Commercial and Industrial Bank of China: $5T+ AUM. 4 biggest banks in world are in China (they are state owned - guess who is the largest asset manager in the world) with $17T+ AUM. - p value of 0 for correlation with meme stocks. - Look what preceded the short squeezes in meme stocks. - If it quacks like a duck... - Asset Management Companies/Corporations (AMCs) are shadow banks that quite literally rule the world. Money precedes policy. 2 ways to look at it: - China has been cracking down on shadow banks: "Gamestop for AMCs?" - AMC being elevated to meme status has shrouded the actual AMCs and now they are being worshipped. - Who is behind the AMC short squeeze? It's simple... AMCs are behind AMC. That's who is backing the retail apes. Of course hedge funds get eaten alive... Always a bigger fish. - Media blaring is worthless, even hedge fund/MM actions are meaningless. Look at AMCs. It is also too costly for MMs to manipulate this indicator. - This is what moves markets. Know what moves markets and you can frontrun "6 sigma events". - CIBC at the end of a distribution pattern, watch out. - BlackRock and Vanguard together have $18T+ AUM. - Can US and EU AMCs absorb all the selling with money printing (at the expense of further devaluation of USD and pricing out middle class)? I think not. More likely they will move together, US and EU just don't want to be the first one out. Bubble pop soon on global assets. GLHF - DPT
NYSE:AMC
by UnknownUnicorn1043646
2
LKCO Uptrend + Upcoming Levels To WatchLKCO in a nice uptrend and if you're watching a few levels to keep in mind are around the 50 Fib and then another level around that 382 fib. Volume has remained consistent & fundamental events could also be thrown in the mix right now: "The company has established city and industry-level holographic Spatial-Temporal digital twin systems which can be added to autonomous driving vehicles. Recently LKCO expanded its business to more clients despite COVID-19 concerns. “We have placed a premium on cultivating new service relationships with multiple automobile manufacturers globally as the entire industry continues to drive new autonomous-vehicle capabilities. We feel that these recent service contract signings are reflective of our standing within this market, and we are very pleased to be partnering with another reputable and influential company within the auto industry.” - Xuesong Song, Chairman, and CEO of LKCO With its role in the auto industry continuing to grow, LKCO is a large player in the autonomous driving industry. Because of that, it could be worth adding to your list of penny stocks to watch in the coming months." Quote Source: 9 Hot Penny Stocks to Watch For the Upcoming Week
L
by PennyStocks101
DQ Will Benefit from Polycrystalline Silicon's Rising PriceThe NYSE-listed company registered for an IPO on the Star Market at the end of May 2021. ● Daqo New Energy's profitability has been relatively unstable over recent years, while its sales have been increasing. ● To improve its competitiveness, the company decided to lower expenses and enhance product quality. ● External opportunities will exert a positive effect on the firm, including rising prices of polycrystalline silicon, increasing global need for solar energy, and other policy benefits. ● Major risks come from lower raw material prices, new energy consumption pressure and conflicts between different government subsidy programs. The recent downfall of the solar panel sector has aggravated the stock market unnervingly since the beginning of 2021. Some of the solar-related stocks dropped below a 200-day moving average. Daqo New Energy's shares have also been adversely negative, decreasing by approximately 40%. Daqo New Energy was founded in Xinjiang in 2011. After a nine-year development, the firm completed its 4A project operation, with the total production capacity reaching 70,000 tons. Specifically, the firm specializes in developing and producing polycrystalline silicon, accounting for a 16.5% market share in the production chain of silicon materials. Outstanding sales volumes NYSE:DQ As a leading silicon material firm, Daqo New Energy's sales volumes have presented a dramatically increasing trend after establishment. To be precise, the company had the highest YoY growth rate in 2020 for 96.31% while gaining sales volumes of about 74,811 metric tons. Although its revenues have been increasing from 2014, its gross margins were fluctuating. This might be due to its changeful average selling prices (ASPs) affected by the industry. For the full article with the charts, please visit the original link Improvement of self-competitiveness To cope with the intense competition in the polycrystalline silicon industry, this silicon material firm focused on two aspects to enhance its competitiveness. The first demonstrates its cost and price advantage. After setting up, the firm aimed at creating affordable products to offer to its clients. As a result, its average production prices have been in a downward trend since 2014, and eventually lowered to USD 5.85 per kilogram in 2020. For the full article with the charts, please visit the original link While decreasing its product prices, the firm still improves its product quality. In detail, Daqo New Energy strictly monitors the process from raw materials procurement to production and delivery, and testing inputs in each stage. By the end of 2020, it owned over 30 process improvement projects to improve its polysilicon manufacturing process. Furthermore, it received ISO 9001:2008 certification for its quality assurance system. Beneficial opportunities externally Apart from the above efforts, Daqo New Energy also benefits from three external factors. First of all, The public's growing need for polycrystalline silicon is ever-expanding. Although the domestic proportion increased from 64.1% in the mid-2019 to 81.47% by 2020's same period, there still was 20% left with import volumes, indicating other rooms for domestic alternatives. In other words, the domestic supply was still lower than the domestic need, serving as a boost engine for raising polycrystalline silicon's price. The silicon material firm will also gain profits from this rising price trend. For the full article with the charts, please visit the original link Secondly, there is an increasing global need for solar energy. Due to the adverse effects of global warming and COVID-19, solar power appeals as a green investment opportunity for global investors. As a leading raw-material provider within the solar energy industry, Daqo New Energy has been taking the lead in China, in which annual demand for solar energy is expected to exceed 70 GW in the future. Last but not least, policy benefits swing Daqo into an upper hand position. To complete carbon neutrality before 2060, the National Energy Administration in China is actively promoting photovoltaic power generation this year, which occupies 11% of the whole. Under this situation, China Photovoltaic Industry Association (CPIA) is expecting a dramatic increase in the photovoltaic industry's installed capacity. Specifically, China will install 123 GW by 2025. Silicon materials are important to the upstream of the photovoltaic industry chain, giving Daqo New Energy more room for development. For the full article with the charts, please visit the original link One of the top ten leaders in the industry At a global stage, the company's production was comparatively stable from 2017 to 2020, hovering around the top five and top six among all companies in the world. However, compared with Zhongneng Technology, its production was still lagging behind, indicating more room for development. For the full article with the charts, please visit the original link From 2017 to 2020, Daqo New Energy's profitability was comparatively higher while other expenses were lower. For instance, the silicon material firm's operating incomes, gross margin and ROE were higher than Asia Silicon. On the contrary, its period expense ratio and R&D expense ratio were lower than Asia Silicon and Tongwei, separately. Although its R&D expense ratio is in a rising trend, the average in these three years was merely about 1.06%, which still needs to be improved. For the full article with the charts, please visit the original link Potential risks Except for the above factors, the company also has three risks. First of all, lower prices for monocrystal silicon and polycrystalline silicon will hinder its future development. Recently, China's silicon industry's average selling prices have been dropping, moving lower than imported silicon prices. As a result, Daqo New Energy's ASPs were also lower than the current market price. For the full article with the charts, please visit the original link Secondly, the company faces pressures from new energy consumption. With the new energy market's rapid development, there still are some issues in new energy consumption. Specifically, abandoning the wild and light, limiting electricity will still be the essential factor to restrict new energy's development. Thirdly, the risk of taking back subsidies from electricity prices. Due to the more extended period of closing an account, there is always a delay from China's Ministry of Finance's new energy subsidies. This situation will further affect the power generation enterprise's cash flow, harming the actual investment result. Bottom line As the photovoltaic industry has been rapidly evolving, Daqo New Energy has caught this headwind and continues to grow. Furthermore, the company's self-improvements have ensured it maintains a good rank globally. Although there still are some risks, they are not likely to severely affect the silicon material firm's business.
NYSE:DQLong
by EqualOcean
1
Alibaba warms the engines for a full-bodied climb ?According to algorithmic advisor Market Miracle $BABA is ready to rise again. In fact, an input signal was produced at a price of USD 211.06 for a target of USD 235.59 or a potential profit of 11.62% According to the reference sites that I follow for the fundamental analysis, Alibaba is a healthy, well capitalised company that has no particular risks and is below the fair price of about 32 %. Both the reasons of which I am have made me interested to the Stock and analyzing it from the graphical point of view I would expect a price action similar to that one from me imagined on the diagram. I will definitely take positions on the title in the next few days. This idea is based on the signal generated by the Marketmiracle advisor whose link you can find by scrolling at the bottom of this page.
NYSE:BABALong
by MarketMiracleAdvisor
China Life Insurance Co Ltd 🧙Headquartered in Beijing and commanding around 20% share, China Life Insurance is the largest life insurance company in China. The firm offers group and individual life insurance through exclusive agents, bancassurance, and other marketing platforms. While the bulk of profits stem from life insurance policies, additional operations include short-term policies such as accident and health insurance. The company is currently undergoing a business transformation toward the sale of long-term protection products and away from short-term and single-premium products.
LLong
by unfair_advantage
GSX Techedu Inc 🧙GSX Techedu Inc is a technology-driven education company with core expertise in online K-12 courses. Its K-12 courses cover all primary and secondary grades. It also offers foreign language, professional, and interest courses. The company's segment includes the provision of education services. It operates solely in the PRC and all assets are located in the PRC. If you want not to miss ideas like this one,🎯 subscribe and press a thumb up! 👍 Have a question? Don't be shy to ask! 🤓 Interested to study how to analyze charts, follow me!
NYSE:GOTULong
by unfair_advantage