Advanced Battery Tech, Conservative Projections (ABAT)

Advanced Battery Technologies, Inc. (NASDAQ: ABAT) has offered up 3-year projections for the recently acquired Wuxi ZhongQiang Autocycle CO., Ltd., which currently has four production lines in operation with production capability of 100 vehicles per day per line.  The company says this is less than 20% of total capacity.  The projections given are expected to be achieved via an increase in new orders and through more efficiency.

For all of 2009, the unit is expected to contribute revenue of $35.0 to $37.5 million and gross profit of $9.2 to $9.7 million.

For 2010, Advanced Battery Tech believes that growth in domestic and international demand for its products will continue; and it believes Wuxi production will reach approximately two-thirds of its current capacity.  This would allow it to contribute $55 to $65 million in revenue by the end of next year.

For 2011, the company expects to utilize at least 80% to 85% of current capacity.

It was just last week that we saw it give a status update for its Wuxi Zhongqiang vehicles, but today’s guidance is the financial guidance.

The company’s description is in the design, manufacturing, and marketing of rechargeable polymer lithium-ion batteries… in China.

This stock trades an average of almost 500,000 shares per day and its market cap is listed as approximately $217 million.  For a comparison, the company generated $45.172 million in 2008 revenues and generated $31.898 million in 2007 revenues.  There are too few analysts making projections for anything resembling a consensus, but the 2009 “consensus” from Thomson Reuters is $57.2 million in revenues.

Advanced Battery Technologies is seeing a gain of 4% to $3.98, and the 52-week trading range is $1.17 to $6.40.

JON C. OGG