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BRADENTON, Fla. - BAIYU Holdings, Inc. (NASDAQ:BYU), a prominent business-to-business e-commerce and supply chain service provider, announced today that its subsidiary BMYA New Energy Technology Inc. has entered into a $60 million contract with Feng's Auto Parts Inc. for the supply of electric lithium batteries. This marks the introduction of BAIYU's proprietary lithium battery brand to the U.S. market.
Under the terms of the agreement, Feng's Auto Parts Inc. will purchase 50,000 sets of electric lithium batteries, priced at $1,200 per unit. The batteries, available in both 6V and 12V configurations, have capacities ranging from 100Ah to 300Ah. The company expects to complete all deliveries by May 2025.
Ms. Ouyang Renmei, CEO of BAIYU Holdings, stated that the contract signifies progress in the company's expansion within the energy storage and lithium battery sectors and demonstrates the U.S. market's recognition of BAIYU's industry strength. She expressed the company's ambition to secure further opportunities to enhance their brand and shareholder value.
BAIYU Holdings focuses on the new energy industry, including photovoltaic and energy storage power solutions, and the operation of fast-charging power stations. The company provides comprehensive solutions for global new energy storage systems and specialized sectors, including investment in fast-charging and commercial power stations.
This announcement includes forward-looking statements subject to risks and uncertainties. The company has indicated that while it believes its projections are reasonable, actual results could differ materially from those anticipated.
This news is based on a press release statement from BAIYU Holdings, Inc.
In other recent news, BAIYU Holdings has secured a $60 million battery supply deal with Feng’s Auto Parts Inc., marking a significant expansion into the electric vehicle sector. The company has also revealed plans to acquire Shenzhen Jintongyuan Energy Storage Technology Co., Ltd. for approximately $105 million, further emphasizing its strategic push into the renewable energy storage battery market. In a bid to penetrate the global new energy vehicle (NEV) market, BAIYU has partnered with U.S.-based Electra New Energy Vehicle, Inc., planning a majority stake acquisition and an investment of up to $3 million over the next three years.
Significant changes in corporate governance have also been noted, with the appointment of Rongrong (Rita) Jiang as a new independent director, following the resignation of Xiangjun Wang. Concurrently, Donghong Xiong, a current director, has assumed the role of Chairman of the Nominating and Governance Committee. These recent developments underline BAIYU's commitment to growth and expansion in the new energy sector, with an expected focus on procurement, manufacturing, and supply chain management for NEV-related products in China.
InvestingPro Insights
In light of BAIYU Holdings, Inc.'s recent announcement about their substantial contract with Feng's Auto Parts Inc., investors may find the following insights from InvestingPro particularly relevant. Currently, BAIYU is trading at a low Price / Book multiple of 0.52, suggesting the company's assets may be undervalued relative to its market price. This could be an attractive entry point for investors looking for value in the e-commerce and energy storage sectors.
Moreover, BAIYU has experienced a significant return over the last week, with a 12.53% increase in stock price. This surge aligns with the company's expansion efforts and may reflect investor optimism regarding their market penetration and future growth prospects. However, it's essential to note that the stock's RSI suggests it is in overbought territory, which can sometimes indicate a pullback in the near term.
The company's P/E Ratio stands at 4.39, which is relatively low, especially when considering its near-term earnings growth. This could indicate that BAIYU's earnings are expected to improve, potentially providing a boon for investors. On the flip side, the company's gross profit margins remain weak, which is something investors should monitor as it can affect long-term profitability.
For those interested in a deeper analysis, InvestingPro offers additional insights into BAIYU Holdings, Inc. with more InvestingPro Tips available at https://www.investing.com/pro/BYU.
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