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ZIBO, China – Sunrise New Energy Co., Ltd. (NASDAQ:), a manufacturer of graphite anode material for lithium-ion batteries, today announced that it has received a substantial order for 25,000 tons of energy storage materials from Xiamen HiTHIUM Energy Storage Technology Co., Ltd. This agreement marks Sunrise’s entry into the energy storage battery materials market, complementing its existing electric vehicle battery materials business.
HiTHIUM, known for its lithium iron phosphate batteries and energy storage systems, has chosen Sunrise to supply the materials for its products. In 2023, HiTHIUM contributed more than 15 GWh to global energy storage cell shipments, totaling 196.7 GWh. HiTHIUM’s initial order could lead to further collaboration and additional orders, reflecting a growing trend of cooperation in the energy storage sector.
Sunrise products, especially the ultra-long-cycle, high-energy-density products capable of 10,000 cycles, have been recognized by numerous customers, including two in mass production and nine in trial phases. This order from HiTHIUM is expected to be the first of many, as Sunrise continues to innovate and expand its market presence.
Haiping Hu, president of Sunrise, said: “This partnership represents a strategic milestone for Sunrise as we embark on a new phase of growth in the energy storage market.” He added that the collaboration with HiTHIUM enables Sunrise to provide advanced solutions to meet global customer needs and support a sustainable future.
Sunrise operates in Zibo, Shandong Province, China, and is building a manufacturing plant in Guizhou Province, China, which is expected to benefit from low-cost renewable electricity.
This announcement is based on a press release.
Insights on InvestingPro
Amid news of Sunrise New Energy Co., Ltd.’s (NASDAQ:EPOW) strategic order from HiTHIUM, the company’s financial health and market performance provide additional context for investors. With a market capitalization of just over $20 million, Sunrise operates in a highly competitive industry that has seen significant volatility. Notably, the company’s shares have seen a sharp decline over the past week, aligning with a general trend of high price volatility.
From a financial perspective, the last twelve months starting from the second quarter of 2023 have been challenging for Sunrise, as the company has not been profitable during this period. This is reflected in a negative P/E ratio of -1.19, indicating investor concerns about the company’s earnings potential. Furthermore, gross profit margin stands at -3.63%, underscoring the difficulties Sunrise faces in maintaining profitability despite its expansion efforts.
Nonetheless, the company has shown an impressive revenue growth of 297.05% over the trailing twelve months as of Q2 2023. This suggests that despite the current financial challenges, Sunrise is expanding its market share and increasing sales, which could be strengthened by the new agreement with CiaoTHIUM. Investors could also derive value from the company’s forward-looking prospects, as indicated by the InvestingPro Fair Value of $1.05 USD, suggesting potential undervaluation at the current price of $0.74 USD.
For those considering an investment in Sunrise, it is important to note that the company’s shares tend to move in the opposite direction of the market, which could be a risk factor in times of market instability. Additionally, the lack of dividend payments can discourage income-seeking investors.
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