Advanced Battery Tech, Conservative Projections (ABAT)

By Douglas A. McIntyre Updated Mar 10, 6:01PM EDT · Published May 27, 8:49AM EDT

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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

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.