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Sunday, July 20, 2014 9:57:50 PM
KNDI Bull Run (The Epiphany)
Bull cites
1. The second phase of NEV subsidy will be announced before the end of July.
2. The difference between this second phase vs the first phase subsidy is that, this one is a provincial based, while the phase one was Hangzhou city based. In other words, in addition to Hangzhou, the city of Jinhua, Wenzhou and all together 11 large cities in Zhejiang province will all be able to get the NEV subsidy benefit. To me, this is a huge good news to Kandi, since it is already on Zhejiang/Hangzhou's the local NEW registration list. This means ZZY will be able to extend its micro-bus program to all over the Zhejiang province,which has a population of over 54mil people.
3. All subsidies in phase one, which was Hangzhou baseds subsidy, will be inherited in phase two, which means, Zhejiang/Hangzhou will once again offer a 1:1 match of the national subsidy. In Kandi's case, its SMA7000BEV and SMA7001BEV should get a total of RMB108,000 subsidy for each car, makes SMA7000BEV effectively free for ZZY to buy it, and that in turn will make ZZY's micro-bus and community long lease programs very profitable.
4. All EVs built and sold in 2013 will be retroactively subsidized. Recall that the first phase Hangzhou based subsidy ended in Dec. 31, 2012. So this phase two policy effectively re-connects from that ending time, thus all the EVs sold since then will get the subsidy. This is a great news for everyone who bought EVs in 2013, and good for Kandi as well since all Kandi EVs sold before last Sep. 2013, when the national subsidy was announced, will be retroactively subsidized.
Noted... The bevy, plethora, cornucopia of verifiable positive developments (coming out of China) have been exceeding positive and will usher in many new rounds of buyers. Any and every pullback will certainly be met with heavy handed buying from waiting new arrivals.
Make no mistake about it, KNDI shares moving higher, much higher short term.
BULL
Recent KNDI News
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