DexCom earnings beat by $0.03, revenue topped estimates
DALIAN, China - CBAK Energy Technology, Inc. (NASDAQ:CBAT), a prominent lithium-ion battery producer in China, announced today that its Board of Directors has authorized a share repurchase program. The company plans to buy back up to $20 million of its common stock in an effort to deliver value to shareholders and align with Nasdaq’s minimum bid price rule. According to InvestingPro data, CBAT currently trades at $0.86 per share with a market capitalization of $77 million, and analysis suggests the stock is trading below its Fair Value.
The repurchases may occur via open market transactions, private negotiations, or other methods such as Rule 10b5-1 trading plans, subject to market conditions and other factors. This program is set to expire on May 20, 2026, and may be halted or discontinued at any time, without obligating the company to purchase any specific number of shares.
CBAK Energy’s CEO, Zhiguang Hu, expressed confidence in the company’s long-term value, citing the buyback as a sound capital allocation decision aimed at supporting the stock price and addressing the Nasdaq compliance issue. The company’s CFO, Jiewei Li, pointed out CBAK’s strong market position, including a 19% global market share for their flagship Model 32140 battery in 2024, and high gross margins, which stood at 31.5% for the battery segment and 23.7% for the entire business last year. InvestingPro analysis reveals the company maintains a Price/Book ratio of 0.64 and shows strong free cash flow yield, with 11 additional ProTips available to subscribers.
CBAK Energy specializes in manufacturing and selling new energy high-power lithium and sodium batteries for various applications, including electric vehicles and energy storage. The company has been listed on the Nasdaq since January 2006 and operates several subsidiaries across China.
This press release includes forward-looking statements that involve risks and uncertainties. Factors that could cause actual results to differ include potential government intervention in China, market volatility, and other risks detailed in the company’s SEC filings. The company does not undertake any obligation to update these forward-looking statements beyond what is required by law. For deeper insights into CBAK Energy’s financial health and future prospects, investors can access comprehensive analysis and Fair Value estimates through InvestingPro’s detailed research reports, available for over 1,400 US-listed companies.
The information in this article is based on a press release statement from CBAK Energy Technology, Inc.
In other recent news, CBAK Energy Technology Inc. reported a significant turnaround in its Q4 2024 earnings, achieving a net income of $11.79 million compared to a loss in the previous year. Despite a 13.61% decrease in consolidated net revenues to $176.61 million, the company’s gross profit surged, enhancing investor confidence. CBAK Energy’s gross profit margin improved to 23.7%, up from 15.52% the previous year. In a strategic move, CBAK Energy and Kandi Technologies Group announced plans to build two lithium battery production facilities in the United States. The collaboration aims to meet the growing demand for off-road vehicles in North America and capitalize on clean energy incentives from the U.S. Inflation Reduction Act. Additionally, CBAK Energy disclosed changes in its board of directors, with Mr. Yunfei Li resigning as Chairman and Mr. Jiewei Li, the current CFO, being appointed as a new director. The company has not yet designated a new Chairman. These developments reflect CBAK Energy’s ongoing efforts to expand its production capacity and strengthen its leadership team.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.