Greenland Rises 6% Year to Date: Should You Buy the GTEC Stock?
Image Source: Zacks Investment Research
Greenland stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend.
Image Source: Zacks Investment Research
Greenland's first-quarter 2025 results suffered from lower volumes of transmission products. Revenues declined 4.6% year over year to $21.68 million. The company's transmission products are used in 1-ton to 15-ton forklift trucks and sells these transmission products directly to forklift-truck manufacturers. In the first quarter of 2025, Greenland sold an aggregate of 38,734 sets of transmission products to more than 100 forklift manufacturers in China.Greenland's focus on selling higher-value and more sophisticated products, such as hydraulic transmission products, is expected to expand gross margin. In first-quarter 2025, gross margin expanded 580 basis points (bps) to 30.7%. Moreover, first-quarter 2025 income from operations surged 149.6% year over year to $4.81 million due to lower advertising and marketing expenses, shipping fees, general and administrative expenses, and research and development expenses. Higher gross margin and operating margin helped Greenland report earnings of 29 cents per share, up 61.1% year over year.For 2025, the Zacks Consensus Estimate for GTEC's earnings has been steady at 48 cents per share over the past month. The company reported earnings of 90 cents per share in 2024.
Greenland Technologies Holding Corporation price-consensus-chart | Greenland Technologies Holding Corporation Quote
In December 2020, Greenland launched HEVI, which focuses on the production and sale of electric industrial heavy equipment. HEVI's electric industrial heavy equipment products currently include GEF-series electric forklifts, a series of lithium-powered forklifts with three models ranging in size from 1.8 tons to 3.5 tons, GEL-1800, a 1.8-ton rated load lithium-powered electric wheeled front loader,GEX-8000, an all-electric 8.0 ton rated load lithium-powered wheeled excavator, and GEL-5000, an all-electric 5.0 ton rated load lithium wheeled front loader.In August 2024, HEVI launched its H55L all-electric wheeled front-end loader, which can lift up to six tons in indoor and outdoor applications. The H65L all-electric wheeled front-end loader is the largest lithium battery-powered electric wheel loader commercially available in North America.Moreover, HEVI introduced mobile DC battery chargers to support a growing market of EV applications requiring DC charging capabilities in the North America market. Expanding production capacity has been driving Greenland's prospects. In August 2022, HEVI launched a 54,000-square-foot industrial electric vehicle assembly site in Baltimore, Maryland. In July 2024, HEVI announced a partnership with Lonking Holdings Limited to develop and distribute heavy electric machinery and related technology specialized for the U.S. market.
Investors should note that Greenland faces significant customer concentration, with its Chinese subsidiaries' five largest customers accounting for 41.27% of revenues. In first-quarter 2025, Greenland's single largest customer, Hangcha Group, accounted for 17.77% while the second largest, Longgong Forklift Truck, accounted for 9.48% of total revenues. Loss of any of these customers can hurt GTEC's volume.
Greenland shares are undervalued, as suggested by the Value Score of A. In terms of Price/Book, Greenland is trading at 0.48X compared with the industry's 11.03X, Dana's 1.74X, BorgWarner's 1.25X and American Axle & Manufacturing Holdings' 0.83X, suggesting a cheap valuation.
Image Source: Zacks Investment Research
Despite stiff competition and customer concentration risks, Greenland benefits from a diversified portfolio. Greenland currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BorgWarner Inc. (BWA) : Free Stock Analysis Report
American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report
Dana Incorporated (DAN) : Free Stock Analysis Report
Greenland Technologies Holding Corporation (GTEC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Errore nel recupero dei dati
Effettua l'accesso per consultare il tuo portafoglio
Errore nel recupero dei dati
Errore nel recupero dei dati
Errore nel recupero dei dati
Errore nel recupero dei dati
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Pharma interest can plug NIH funding gap: Illumina CEO
Genetic sequencing company Illumina (ILMN) has had a rough few years. It has battled activist investors, faced off with the Federal Trade Commission, and, most recently, agreed to a $9.8 million settlement with the Department of Justice over a cybersecurity breach. To add to the pile: sanctions in China and the Trump administration cutting National Institutes of Health (NIH) funding, which the company relies heavily on for clinical research. The numbers don't lie. The stock is down more than 21% in the past year and sank more than 11% in after-hours trading Thursday after the company reported an earnings miss for the second quarter. The company reported $1.06 billion in revenues compared to expected revenues of $1.05 billion. Adjusted earnings per share came in at $1.19 compared to estimates of $1.01. But CEO Jacob Thaysen told Yahoo Finance he remains positive about the company's near-term growth. Why? Because, in part, pharmaceutical companies can provide a new market. "Now, we're shifting from small things to really big programs. Some of the things making up for the reduction from the NIH is kind of indirect, but pharma is getting more interest in these big programs," he said, noting that 15% of the company is exposed to government research funding. "It's not only about sequencing itself, but really using massive amounts of data ... to really identify new drug targets and understand a disease," Thaysen said. The idea to use patient data to help the pharmaceutical world was also identified by 23andMe, which recently came out of bankruptcy through a nonprofit led by founder Anne Wojcicki. Thaysen said that unlike 23andMe, which he has worked with, his company is not going to pursue drug development on its own. "We have a lot of pharma companies that are very excited to work with us," he said. In addition to genetic testing of patient samples, the company is looking at growing in the preventative side of care with cancer screenings. The oncology business, Thaysen said, will have healthy growth over the next 10 or so years. China China banned importations of the San Diego-based company's sequencing machines earlier this year as part of its retaliatory actions to Trump's tariff war. Thaysen said he is working with regulators to try to reverse that, but "in the meantime, that business is declining, and we are expecting it to be flat." In fact, though China has historically been about 10% of the company's business, it contributed to half of the decline in earnings this past week. "China was never a huge part of Illumina's business. When it was the largest, it was just around 10%. We're down to 5% of the business," Thaysen told Yahoo Finance. But because of the tariff war and China's goals to boost its domestic innovation market, Illumina has faced a setback in its market power there from local competition. "As soon as there is a Chinese alternative that is good enough, then you will see that the Chinese government is pushing for the Chinese population, the Chinese companies to use that technology," Thaysen said. He added that even with the increased competition, China is an appealing market to remain in. Analysts are still waiting to see more progress on Illumina's return to growth. Jefferies analyst Tycho Peterson said in a note to clients that the firm will reiterate its Hold rating until things settle: "While the clinical traction is encouraging, we view clarity on near-term headwinds (A&G, China, Roche) and a path to sustainable HSD growth as key to a more constructive view. Reiterate Hold." Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
Stryker lowers expected tariff impact to $175M
This story was originally published on MedTech Dive. To receive daily news and insights, subscribe to our free daily MedTech Dive newsletter. By the numbers Q2 revenue: $6 billion 11.1% increase year over year Net income: $884 million 7.2% increase year over year Stryker expects a $175 million tariff impact on earnings in 2025, a slight decrease from the $200 million the company forecast in May. Stryker joins several medical device companies that have slashed tariff expectations, with several firms, including Johnson & Johnson and Boston Scientific, cutting the expected tariff hit by as much as half. Stryker CFO Preston Wells said Thursday on an earnings call that the changes were a result of the U.S. and China agreeing to significantly reduce levies. However, Stryker did not cut its forecast by as much as other companies because the recent trade agreement with the European Union, which set a tariff rate of 15%, was more than the 10% Stryker had included in its previous model. CEO Kevin Lobo said Stryker was impacted less than other companies due to its manufacturing footprint in Europe and having less of a presence in China than other medtech companies. Raised earnings forecast Stryker raised its financial forecast for the year, now expecting organic sales growth in a range of 9.5% to 10%, from a previous range of 8.5% to 9.5%. The company also raised its expectations for adjusted earnings per share by about 20 cents. Lobo said the update was driven by continued procedural strength, including implants, and demand for capital equipment. Wells said initiatives Stryker started during the COVID-19 pandemic, such as pricing and manufacturing efficiency, have helped drive margin improvements. Robot update Stryker shared an update on planned launches for the company's robots. In March, the company unveiled its latest orthopedic robot, the Mako 4. The Food and Drug Administration cleared the new system, but Stryker has not yet rolled out the robot globally, Lobo said. The company has new hip revision and spine surgery applications that are only available on Mako 4. Stryker's shoulder surgery application is currently on its Mako 3 robot, and is in the process of migrating to the newer robot, Lobo said. Because of that, the feature is still in a limited launch until next year. Stryker reported a record quarter for Mako installations, although the company did not disclose the number of robots. The company reached a milestone of 2 million robotic procedures performed with Mako during the second quarter. Recommended Reading Stryker expects $200M tariff hit, lowers earnings forecast Sign in to access your portfolio
Yahoo
2 hours ago
- Yahoo
Lufax Holding Ltd (LU) Sells $64M in Bad Loans to Cut Credit Risk, Stabilize Outlook
We recently compiled a list of the 10 Best Low Cost Stocks To Buy Under $50. Lufax Holding Ltd stands fourth on our list. Lufax Holding Ltd (NYSE:LU), a leading Chinese fintech firm serving small and micro businesses, is undergoing strategic shifts to navigate a challenging market in 2025. A key recent development was the sale of non-performing loans (NPLs) through its subsidiary, Ping An Consumer Finance. The transaction involved offloading 469 million yuan in NPLs for 36.44 million yuan to Sh China Merch Ping An Asset Management. This move reduced credit risk and supported a drop in the company's loan portfolio by 18%, helping stabilize investor sentiment amid asset quality concerns. In addition to asset optimization, Lufax Holding Ltd (NYSE:LU) is focusing on digital transformation through new partnerships and AI-driven innovation. These efforts aim to boost operational efficiency and profitability while enhancing its competitive edge in a crowded fintech market. The business is also pursuing cost-cutting measures as part of a broader strategy to improve earnings. Despite these positive steps, cheap stocks to buy like Lufax Holding Ltd (NYSE:LU) saw sharp declines in late July, dropping over 11% and 12% on back-to-back days. The sell-off reflected investor concerns over limited near-term catalysts and persistent pressure from traditional banks. An individual using a laptop to access the fintech platform to manage their finances. Looking ahead, the corporation plans to continue managing credit risk proactively, expand its digital offerings, and pursue strategic partnerships. These efforts are expected to support earnings growth and may enable the resumption of dividends by the end of the 2025 fiscal year. While we acknowledge the potential of LU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
