Cleantech Solutions International Inc. (NASDAQ:CLNT)
Shares of Cleantech Solutions International Inc. (NASDAQ:CLNT) nearly doubled in value after the company’s subsidiary, Sharing Economy Investment Limited, entered into an exclusivity agreement with Inspirit Studio. The stock was up by 96% after signing the agreement that paves way for the acquisition of a 51% stake in Inspirit Studio.
CLNT Stock Performance
The stock is currently trading in a short uptrend as it closes in on its 52-week high of $10.70 a share. CLNT is also up by more than 100% for the year after outperforming the overall industry.
The acquisition of a 51% stake in Inspirit Studio will expand the Cleantech Solutions International Inc. (NASDAQ:CLNT) footprint into the delivery service business. Inspirit Studio is the owner of a mobile platform dubbed Anyway that allows people to provide courier services during commuting times. The platform connects senders and freelance couriers who are willing to deliver letters and parcels for a small fee.
“With Anyway, senders can get speedy responses to contact with our freelance couriers who are in close proximity to the senders. There is no limitation on service area and business hours. With a five-month pilot program in Hong Kong, we have signed up over 2,000 freelance couriers, with over successful 6,000 transactions,” said Inspirit Studio, CEO Kurt Tam
Cleantech Solutions International Inc. (NASDAQ:CLNT) is hoping to generate significant value from Anyway given the growth being experienced in the peer-to-peer delivery business. The Chinese market alone grew from 124 million people in 2014 to 231 million last year, and reports project the marketplace to grow to 353 million people by next year.
Power Charger Renting Business
Separately, Cleantech Solutions International Inc. (NASDAQ:CLNT) subsidiary, EC Power has started to provide mobile power charger rental services through convenience stores in Hong Kong and Macau. The company plans to provide the rental chargers in over 700 store locations in Hong Kong and in over 40 locations in Macau.
The Cleantech Solutions International Inc. (NASDAQ:CLNT) subsidiary also plans to expand the services to other regions. There are also plans to acquire a battery production company to capture the burgeoning market demand. The Chinese battery renting market is set to reach 104 million users by the end of the year and grow to 246 million users by 2019.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: 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.