ZIBO, China - Sunrise New Energy Co., Ltd. (NASDAQ:EPOW), a producer of graphite anode material for lithium-ion batteries, announced today it has received a substantial order for 25,000 tons of energy storage materials from Xiamen HiTHIUM Energy Storage Technology Co., Ltd. This deal signifies Sunrise's entry into the energy storage battery materials market, which complements its existing electric vehicle battery materials business.
HiTHIUM, known for its lithium iron phosphate energy storage batteries and systems, has chosen Sunrise to supply the materials for its products. In 2023, HiTHIUM contributed over 15 GWh to the global energy storage cell shipments, which totaled 196.7 GWh. The initial order from HiTHIUM could lead to further collaboration and additional orders, reflecting a growing trend of cooperation in the energy storage industry.
Sunrise's products, particularly its high-energy-density ultra-long-cycle products capable of 10,000 cycles, have been recognized by several clients, with 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, Chairman of Sunrise, stated, "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 allows Sunrise to provide advanced solutions to meet the needs of global customers and support a sustainable future.
Sunrise operates out of Zibo, Shandong Province, China, and is constructing 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 statement.
InvestingPro Insights
Amidst the 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 sector that has seen significant volatility. In particular, the company's stock has experienced a sharp decline over the past week, aligning with an overall trend of high price volatility.
From a financial standpoint, the last twelve months as of Q2 2023 have been challenging for Sunrise, with the company not being 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. Moreover, the gross profit margin stands at -3.63%, underscoring the difficulties Sunrise faces in maintaining profitability amidst its expansion efforts.
Nevertheless, the company has shown impressive revenue growth of 297.05% over the last 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 bolstered by the new deal with HiTHIUM. Investors may also find value in the company's forward-looking prospects, as indicated by the InvestingPro Fair Value of $1.05 USD, which suggests potential undervaluation at the current price of $0.74 USD.
For those considering an investment in Sunrise, it's important to note that the company's stock tends to move in the opposite direction of the market, which could be a risk factor in periods of market instability. Additionally, the lack of dividend payments may deter income-seeking investors.
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