Energy & Mining

Highpower International Inc. (NASDAQ:HPJ) Looks solid

Highpower International Inc. (NASDAQ:HPJ)

Highpower International Inc. (NASDAQ:HPJ) is based in China and was founded in 2001 as a clean energy group dedicated to the discovery, development, production and commercialization of rechargeable Ni-MH / Lithium batteries, power source and energy storage systems. HPJ shares traded around $1 for most of 2012 and 2013 but hit a high of over $8 in 2014. At the beginning of 2017 HPJ was trading cose to $2 but today, on heavy volumes, HPJ closed at $3.15.

Last week, Highpower International Inc. (NASDAQ:HPJ) provided unaudited Q4 and full year financial expectations. The release was eye-opening. For Q4, Highpower expects $53.9 million in revenues which is a 42.3% increase from the same quarter of the previous year. Q4 gross profit is expected at $10.9 million which is a 64.8% increase from Q4 2015. Q4 net income is expected to come in at $1.8 million which is a whopping 952% YoY increase. For 2016 revenues are expected at $173.9 million which is an 18.9% increase over 2015. 2016 net income is expected at $6.1 million which is a 58.7% increase from 2015.

Highpower International Inc. (NASDAQ:HPJ) has an enviable cash position. Reports put their cash per share at $2.99 which would indicate that the company has been trading below its cash levels for months. Despite its poor share performance, EPS has been impressive. In 2011 there was an EPS loss of $0.18 but has trended, mostly, up and EPS was at a profitable $0.26 in 2015. Sales have also been decent. In 2011 sales were reported at $110.6 million and that figure has improved to $146.2 million in 2015. HPJ is trading 91% above their 52-week low and has a Relative Strength Index figure of 80 which is teetering on overbought. In the meantime, the number of outstanding shares for Highpower International Inc. (NASDAQ:HPJ) has moved modestly. In 2011 there were 13.58 million outstanding HPJ shares and that figure expanded to 15.1 million in 2015.

Ticker Symbol HPJ
Last Price a/o 4:00 PM EST  $                      3.15
Average Volume                      48,500
Market Cap (mlns)  $                    48.51
Sales (mlns) $157.80
Shares Outstanding (mlns) 15.4
Share Float (mlns) 8.97
Shortable Yes
Optionable Yes
Inside Ownership 40.75%
Short Float 0.36%
Short Interest Ratio 0.67
Quarterly Return 18.87%
YTD Return 34.04%
Year Return 31.89%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.

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James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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