Kandi Technologies (KNDI) Reports Solid Quarter On Go-Kart Growth

The key for longer term growth for Kandi Technologies (KNDI) is sales of electric cars in China.  While the company continues to build on that strategy, sales remain strong in its legacy go-kart and ATV business.  The company reported a profitable quarter with very good quarter over quarter non GAAP EPS  growth of 75%.  However, revenues remained stagnant over the year ago quarter.

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"Kandi continues its progress toward becoming a leader in the pure EV market in China," said Mr. Hu. "Given our strategic relationships and investments, we believe Kandi is well positioned to anticipate growing demand for EVs. That said, we recognize that the organic development of markets for these emerging technologies will take time. As a result, we expect sales to grow modestly over the near term."

I still like shares of KNDI, particularly down at these levels.  It will take some time for the company to make sizable jumps in revenue for its electric cars which could keep the stock down for a few more months, but shares are compelling at current levels.  I’m buying more down here.  I made a call on July 11th, saying the bottom is in and I stand behind that call. 

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