Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 3 Jun, 25 | MVST | Speculative Buy | USD 3.57 | USD 3.75 | USD 3.93 | Same day | Closed |
5.04%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Microvast Holdings, Inc. provides battery technologies for electric vehicles and energy storage solutions. The company offers a range of cell chemistries, such as lithium titanate oxide, lithium iron phosphate, and nickel manganese cobalt version 1 and 2. It also designs, develops, and manufactures battery components, such as cathode, anode, electrolyte, and separator. In addition, the company offers battery solutions for commercial vehicles and energy storage systems. Its commercial vehicle markets cover buses, trains, mining trucks, marine and port vehicles, and automated guided and specialty vehicles, as well as light, medium, heavy-duty trucks. It operates China, rest of the Asia Pacific, Europe, and the United States. Microvast Holdings, Inc. was incorporated in 2006 and is headquartered in Stafford, Texas.
Increased Gross Margin: 36.9% in Q1 FY25 vs 21.2% in Q1 FY24
Enhanced Operating Efficiency: Asset Turnover of 0.12x in Q1 FY25 vs 0.08x in Q1 FY24
Decreased Liquidity: Quick Ratio of 0.94x in Q1 FY25 vs Industry Median of 1.24x
Balance Sheet Risk: Debt-Equity Ratio of 0.61x in Q1 FY25 vs 0.35x in Q1 FY24
Inflationary Pressure, Operational Risks, Supply Chain Distribution, etc
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 3.57 | 3.26 | 3.75 | 3.93 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financial Performance: In 1QFY25, the company saw its revenue surge by 43.2% YoY to a record USD 116.5mn, up from USD 81.4mn in 1QFY24. This growth was primarily driven by an increased sales volume of approximately 535.7 MWh. This top-line growth supported a financial turnaround, with non-GAAP adjusted EBITDA swinging to a positive USD 28.5mn in 1QFY25 from negative USD 3.7mn in 1QFY24, and the company reporting a net profit of USD 61.8mn in 1QFY25 compared to a USD 24.8mn net loss in 1QFY24.
Growth catalyst: MVST starts 1QFY25 with an order backlog of USD 350.5mn, with most orders slated for fulfilment in 2025 and 2026. Looking ahead, the company is maintaining its FY25 revenue growth target of 18% to 25% YoY, aiming for total revenue between USD 450mn and USD 475mn. MVST is also targeting a 30% gross margin throughout 2025, driven by ongoing regional efficiencies and increased utilization.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Speculative Buy’ recommendation has been given on Microvast Holdings, Inc (NASDAQ: MVST) at the closing market price of USD 3.57, as on June 02, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Electrical Equipment & Parts
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| MVST Microvast Holdings Inc |
0.05 1.41% | 3.60 | - | - | 0.41 | 0.24 | 1.50 | -2.1083 |
| ABLZF ABB Ltd |
-0.93 1.56% | 58.83 | 21.23 | 21.01 | 2.58 | 6.22 | 2.64 | 14.26 |
| ABBNY ABB Ltd |
0.14 0.24% | 59.63 | 20.83 | 20.28 | 2.54 | 6.00 | 2.64 | 14.26 |
| MIELF Mitsubishi Electric Corporation |
- -% | 21.26 | 16.87 | 14.53 | 0.0059 | 1.21 | 0.0052 | 0.05 |
| MIELY Mitsubishi Electric Corp ADR |
-0.29 0.68% | 42.49 | 16.50 | 14.88 | 0.0058 | 1.23 | 0.0052 | 0.05 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 2 June 2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
