When you’d like to think about an organization that provides important components to an enormous market, then check out China Automotive Techniques (NASDAQ:CAAS). This agency is an automotive programs and elements producer and vendor which — because the identify implies — is predicated in China. As a result of it’s not a large firm, nonetheless, some American merchants aren’t acquainted with CAAS inventory.
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For one, a market capitalization of round $192 million means that it has room to develop. China Automotive Techniques is a niche-oriented but additionally pretty diversified firm, specializing in “a full range of auto parts integrated into steering programs for each passenger cars and industrial automobiles.”
However, as an knowledgeable investor, it’s vital to find out whether or not the corporate is heading in the right direction. Analyzing the out there knowledge will information us in deciding whether or not China Automotive Techniques is poised for growth.
Whether it is, CAAS inventory might symbolize a ripe alternative for traders — this little-known identify could possibly be a shock market runner in 2021.
CAAS Inventory at a Look
All through its historical past, CAAS inventory has been recognized for sharp value spikes. The bulls shortly pushed the share value above $10 in 2003, 2004, 2006, 2010 and November of this 12 months.
The 2010 value spike in CAAS inventory was significantly highly effective because it topped out on the $23 degree. That value could possibly be a goal for the bulls sooner or later. In the intervening time, although, there are different milestones to attain alongside the best way.
In 2020, the bulls pushed the inventory to a 52-week excessive of $13.69. Nonetheless, by Dec. 21, that value was lower in half. That wasn’t nice information for people who already owned the shares, however no less than potential traders might get in at a lower cost level.
That mentioned, within the remaining stretch of 2020, CAAS appears to be stabilizing. From Dec. 15 by means of Dec. 23, the share value hovered between $6.50 and $7. So, are there causes to imagine that the bull thesis holds true for CAAS?
A Historic Excessive
Holders of CAAS inventory must be glad to know that the corporate studies some spectacular stats for its dimension. For instance, it provides 4 totally different sequence and over 300 fashions of energy steering. It additionally owns three logos “overlaying car components and 190+ Chinese language patents overlaying energy steering know-how.”
The newest stats additionally point out a enterprise in robust progress mode. In November, the agency shipped “approximately 70,000 commercial vehicle steering systems to main Chinese language truck OEM producers and the North America aftermarket.”
That determine represents a “month-to-month historic excessive” for the corporate. As well as, the corporate initiatives that its newfound gross sales charge of 70,000 items will proceed into the primary quarter of subsequent 12 months. This all means that CAAS is transferring in the best course.
Progress within the Electrical Car Market
CEO Qizhou Wu has famous that the corporate’s steering manufacturing traces “are working at almost full capability with two shifts.” So, clearly, the meeting line is working onerous. We will additionally conclude that the market is treating China Automotive Techniques fairly properly.
However CAAS inventory might additionally poise itself for extra progress by getting in on the red-hot electrical automobile (EV) market. Leveraging this market will surely be advantageous.
Just lately launched knowledge signifies that the corporate is, in actual fact, addressing this vital market. Up to now in 2020, it has shipped 120,000 steering units for electric vehicles.
Moreover, the corporate initiatives that this determine could exceed 140,000 items by the 12 months’s finish. And 2021 could possibly be even higher — China Automotive Techniques is pushing for gross sales of greater than 200,000 steering items for Chinese language EVs subsequent 12 months.
The Takeaway
So, clearly this agency is making important headway in its particular area of interest. On prime of its robust unit deliveries, leveraging the EV growth solely provides worth to CAAS inventory and its traders.
Given these spectacular numbers, I believe we are able to anticipate to listen to far more about China Automotive Techniques sooner or later. Its meeting line — and the corporate itself — is working at full steam.
On the date of publication, neither Louis Navellier nor the InvestorPlace Analysis Workers member primarily chargeable for this text held (both straight or not directly) any positions within the securities talked about on this article.
Louis Navellier had an unconventional begin, as a grad pupil who by chance constructed a market-beating inventory system —with returns rivaling even Warren Buffett. In his newest feat, Louis found the “Grasp Key” to benefiting from the biggest tech revolution of this (or any) generation.
