Highpower International
Highpower International (NASDAQ:HPJ), a company that develops and markets lithium ion and nickel-metal hydride solutions yesterday reported their preliminary second quarter 2017 financial results.
HPJ reported preliminary second quarter gross profit to be in between $50 to $52 million which was up from $36.7 million from the same quarter if the previous year.
The company also reported preliminary second quarter net income to be in between $3.5 to $4.1 million which was up from $2.1 million of the same quarter of the previous year.
Highpower International, Inc. CEO’s Comments
Mr. George Pan, Highpower Chairman and CEO, stated,
“We are very pleased to have continued our growth momentum from the first quarter of 2017 to deliver solid top-line and bottom-line preliminary results for the second quarter of 2017. Driven by market demand for energy storage systems, smart devices, and other high end digital products, our lithium ion batteries and battery solutions businesses continued to accelerate. Our net income also increased at a rapid pace fueled by economies of scale and efficiency improvements. We are also pleased with our progress in making strategic investments in critical business areas and developing partnerships with leading industry names. We remain optimistic about the remaining quarters of 2017 and look forward to providing additional updates when we report audited second quarter results in August.”
HPJ Technical Analysis
HPJ opened trading yesterday at $4.20 which was up from the previous day’s trading close of $4.15. HPJ closed trading yesterday at $4.10 and spiked up after market to $5.10, equivalent to a 24% increase from the closing price. Taking a look at the daily chart we can see the last time HPJ traded below these levels we have to go back to June 6th when it traded at highs of $5.25.
Taking a closer look at the daily chart we can see that before the spike up HPJ had been in an overall downward trend dating back to May 15th when it traded at $5.70. HPJ has a float of 9.15 million shares and traded below the normal daily trading volume on Wednesday.
For day trading purposes, I would like to see HPJ open trading on Thursday above $4.75 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.15 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Highpower International, Inc. produces and sells nickel-metal hydride (Ni-MH) and lithium-based rechargeable batteries. The company operates in three segments: Lithium Batteries, Ni-MH Batteries, and New Materials.
It offers Ni-MH rechargeable batteries in AA, AAA, 9V, C, D, and SC sizes in blister packing, as well as chargers and battery packs. The company also provides lithium-ion cylindrical and polymer rechargeable batteries, and power source solutions.
In addition, it is involved in recycling scrap battery materials and sells the recycled materials; the processing, marketing, and research of battery materials; and the design and production of battery packs and systems. The company’s products are used in various applications, such as electric buses, bikes, energy storage systems, power tools, medical equipment, digital and electronic devices, personal care products, lighting, etc.
It sells its products in the People’s Republic of China, rest of Asia, Europe, North America, South America, Africa, and internationally. The company was formerly known as Hong Kong Highpower Technology, Inc. and changed its name to Highpower International, Inc. in October 2010. Highpower International, Inc. was founded in 2001 and is headquartered in Shenzhen, the People’s Republic of China.