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SHANGHAI - Nisun International Enterprise Development Group Co., Ltd (NASDAQ: NISN), a company specializing in supply chain and agricultural logistics solutions, has inked a supply agreement worth $50 million with Sichuan Yingdafeng Agricultural Technology Co., Ltd. The contract stipulates that Yingdafeng will provide high-quality yellow corn over the next 12 months, adhering to national food safety and quality standards. The deal represents approximately 15% of Nisun’s annual revenue, which stood at $340.22 million in the last twelve months. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt.
The deal is part of Nisun International’s strategy to enhance its supply chain capabilities within China’s agriculture sector. Mr. Xin Liu, CEO of Nisun International, stated that this agreement is a reflection of the company’s commitment to establishing a robust and efficient agricultural supply chain.
In addition to the supply agreement, Nisun International is proceeding with its stock repurchase plan, indicating the management’s belief in the undervaluation of the company’s shares and their confidence in its performance. This buyback initiative is aimed at deploying capital strategically and bolstering investor confidence. InvestingPro analysis supports management’s view, with Fair Value calculations suggesting the stock is currently undervalued. The stock has experienced significant pressure, declining over 50% in the past six months, while trading at a notably low Price/Book ratio of 0.11.
Mr. Liu emphasized the company’s focus on consistent growth and maximizing shareholder returns, highlighting strong business fundamentals and strategic initiatives geared towards long-term value creation.
Nisun International offers integrated supply chain solutions and is actively involved in transforming the corporate finance industry through technology. Its services cater to both Chinese and international enterprises and financial institutions, providing professional supply chain management solutions, asset routing, and support for the digital transformation of the tech and finance sectors. While the company maintains a current ratio of 4.23, indicating strong short-term liquidity, InvestingPro subscribers can access 10+ additional key metrics and insights about the company’s financial health and growth prospects.
The information provided in this article is based on a press release statement from Nisun International. It is important to note that forward-looking statements included in the press release are subject to various factors that could cause actual results to differ materially from those projected.
In other recent news, Nisun International Enterprise Development Group Co., Ltd has reported its operational updates through an SEC filing, ensuring transparency in its activities and governance. This filing, signed by CEO Xin Liu, affirms the company’s compliance with reporting requirements. In addition, Nisun International has projected substantial growth for 2025, with anticipated revenues between $420 million and $510 million, and net profits expected to range from $16 million to $20 million. The company attributes this forecast to strategic initiatives in supply chain financing and SME financing solutions, alongside expansion into the KFC franchise business. Notably, the supply chain financing segment is expected to grow by over 36% year-over-year, supported by partnerships such as with Beijing Tongrentang Technology. The SME financing solutions are also predicted to benefit from Chinese government stimulus policies, potentially achieving 20%-30% growth. Furthermore, the venture into the KFC franchise is projected to contribute $30 million to $40 million in revenue for 2025. CEO Xiaoyun Huang has expressed confidence in the company’s strategic positioning to enhance market share.
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