STOCKS TELEGRAPH

Author: Shariq Khan

  • Kingsoft Cloud Holdings Limited (KC) stock plunged into the current market; here is why?

    Kingsoft Cloud Holdings Limited (KC) declined in the current market after announcing the date for the fourth quarter and fiscal 2021 results. KC values at $2.56, losing more than 47.75% compared to Friday’s closing price. The stock closed at $4.91 at the end of the last trading session. The stock volume traded in the previous trading session was around 2.76 million shares. The current market cap of the company is about $1.19 billion.

    KC to announce Fiscal 2021 results next week

    Kingsoft Cloud Holdings Limited (KC) is a China-based independent cloud services provider. As a result, Kingsoft Cloud has developed a robust cloud platform that includes cutting-edge cloud products and industry-specific solutions for both public and private cloud environments.

    The company announced in a press release that it would report its unaudited fourth quarter and fiscal 2021 results on March 24, 2022, before the market opens on Thursday. The company’s management will hold the conference at 8:00 AM US Eastern Time on March 24, 2022.

    KC: Q3 Key Financials

    • KC’s revenues were RMB2.4 billion ($374.61 million) in Q3 gaining 39.6% from RMB1.728 billion in the same quarter of 2020. The gains were attributable to our premium customers’ growth in both public and enterprise cloud services.
    • There was a loss of RMB506.7 million ($78.6 million) in the third quarter of this year, compared to a loss of RMB105.3 million in the same quarter of 2020.
    • Basic and diluted net loss per share of RMB0.15 ($0.02) was reported by KC in the third quarter of 2021, compared to a net loss per share of RMB0.03 in Q3 2020.

    KC: Fourth Quarter Outlook

    During the fourth quarter of 2021, Kingsoft Cloud Holdings Limited (KC) expects total revenues to range between RMB2.63 billion and RMB2.83 billion, indicating a growth rate of 37 percent to 47 percent year-over-year.

    Conclusion

    The company seems optimistic about its outlook, and its revenue has increased significantly in the trailing twelve months. However, its stock has lost 94% value in the last 52 weeks. Its highest in the last 52 weeks was $50.42, and the current price of $2.66 is the lowest in 52 weeks.

  • Lilium N.V. (LILM) declined in the current market; here is why?

    Lilium N.V. (LILM) declined in the current market after recently announcing signing a deal with NetJets and FlightSafety. LILM values at $2.65, losing more than 28.18% compared to Friday’s closing price. The stock closed at $3.69 at the end of the last trading session. The stock volume traded in the previous trading session was around 1.18 million shares. The current market cap of the company is about $840.97 million.

    LILM inked deal with NetJets and FlightSafety

    IN A RECENT PRESS RELEASE, Lilium N.V. (LILM) announced that NetJets Inc. and FlightSafety International had signed an MOU with Lilium N.V. (LILM) for a strategic partnership. NetJets Inc. is currently the world’s leading aviation firm, while FlightSafety International is the industry’s leading aviation training provider.

    According to the deal, NetJets will include 150 Lilium aircraft in its fleet with the right to be used within its existing shared ownership program. NetJets owners will now have more flying options to go along with their current schedules. Lilium expects NetJets to help with a private sales effort for Lilium aircraft buyers. A business model for Lilium’s network in Florida and other parts of the U.S. and Europe will be explored with this partnership by the two companies.

    Aviation training and courseware provider FlightSafety International Inc. will support Lilium Jet operations. FlightSafety’s unique training software will help the advanced air mobility business.

    LILM CEO’s Remarks

    Daniel Wiegand, Co-Founder, and CEO of Lilium said that this alliance is a critical milestone in our ambition to establish radically improved ways of traveling and electrify regional air travel. They believe the private and business professional segments will be future hotspots for the eVTOL revolution. To electrify this market, they look forward to building a long-term strategic partnership with NetJets and FlightSafety.

    Conclusion

    Lilium N.V. (LILM) looks forward to expanding into different markets like Florida and other U.S. markets with the help of this deal. This is a breakthrough in the company’s history, and the partnership could prove to be a massive success for the company in the future.

  • Zhihu Inc. (ZH) declined in the current market; here is why?

    Zhihu Inc. (ZH) declined in the current market after announcing its unaudited fourth quarter and fiscal 2021 results. ZH values at $1.58, losing more than 25% compared to Friday’s closing price. The stock closed at $2.11 at the end of the last trading session. The stock volume traded in the previous trading session was around 2.12 million shares. The current market cap of the company is about $880.75 million.

    ZH: Q4 and Fiscal 2021 Key Financials

    • Zhihu Inc.’s revenue in Q4 2021 was RMB 1.01 billion. It is an increase of 96.1% compared to the revenue of RMB 519.8 million in Q4 2020.
    • Fiscal 2021 revenue was RMB 2.95 billion, 118.9% more than the revenue of RMB 1.3 billion in fiscal 2020.
    • The company’s net loss in Q4 2021 was around RMB 383.3 million, more than compared to the net loss of RMB 90.1 million in Q4 2020.
    • ZH’s net loss in fiscal 2021 was around RMB 1.29 billion; almost double than compared to the net loss of RMB 517.6 million in fiscal 2020.
    • The Q4 2021 basic and diluted loss per share was RMB 0.65, compared to a net loss of RMB 1.97 in Q4 2020.
    • For fiscal 2021, basic and diluted loss per share was RMB 3.06, compared to RMB 9.18 in fiscal 2020.

    ZH: Chairman and CEO’s Remarks 

    Chairman and Ceo Yuan Zhou noted that 2021 was a landmark year for Zhihu. Despite a challenging market climate, they accomplished their IPO in March and ended the year with strong financial progress. They promoted and distributed satisfying content throughout the year, which they define as stuff that broadens minds, solves problems, and engages minds. He further added that they would continue to improve operational efficiency and meet social duties as they continue to uncover the potential of our unique content-centric ecosystem.

    ZH Q1 2022 Outlook

    Zhihu Inc. (ZH) estimates its total sales to be between RMB720 million and RMB740 million in the first quarter of 2022. These predictions are based on current market conditions and preliminary estimations made by the company, but that could be revised.

    Conclusion

    The company intends to increase its market share as its revenue growth was incredible this year. Currently, they are focusing on revenue growth, and profitability is the later part of their strategy. Their revenue defines the effect of content its improvement strategy.

  • Glory Star New Media Group Holdings Ltd. (GSMG) surged in the Pre-market; here is why?

    Glory Star New Media Group Holdings Limited (GSMG) gained in the pre-market after announcing in a press release today that the founder and CEO intend to buy all the company’s common shares. GSMG values at $1, gaining more than 13% compared to Friday’s closing price. The stock closed at $0.88 at the end of the last trading session. The stock volume traded in the previous trading session was around 159.16K shares. The current market cap of the company is about $59.94 million.

    GSMG: Letter by Founder and CEO

    Glory Star New Media Group Holdings Limited (GSMG) reported in a press release that its Board of Directors had received a preliminary non-binding proposal letter dated March 13, 2022, from Mr. Bing Zhang, the Company’s founder, and CEO.

    For $1.27 per ordinary share in a going-private deal, Mr. Zhang expects to buy all of the Glory Star New Media Group Holdings Ltd’s ordinary shares that Mr. Bing Zhang does not already own. As of March 11, 2022, the company’s ordinary shares were trading at a premium of around 44.3 percent. Mr. Bing Zhang owns about 28.9% of the company’s outstanding ordinary shares.

    GSMG: Details of Letter by Founder and CEO

    To carry out the Proposed Transaction, Mr. Bing Zhang will organize an acquisition entity, including other existing owners of the Glory Star New Media Group and equity investors as consortium members. The acquisition is expected to be financed by a combination of loan and equity capital from the Potential Consortium Members.

    Conclusion

    Glory Star New Media Group Holdings Limited (GSMG) stock was going through a decline phase, and its stock was consistently trading below $1. This could be a strategy by the founder and CEO, Mr Zhang, to help the company’s stock gain value and meet the NASDAQ listing compliance. According to the compliance, a stock should trade above $1; otherwise, it could affect the continuity of its stock trading on NASDAQ.

  • Pinduoduo Inc. (PDD) stock declined in the Pre-market; here is why?

    Pinduoduo Inc. (PDD) declined in the pre-market after announcing the date for the fourth quarter and fiscal 2021 results. PDD values at $32.13, losing more than 10% compared to Friday’s closing price. The stock closed at $35.76 at the end of the last trading session. The stock volume traded in the previous trading session was around 8.32 million shares. The current market cap of the company is about $40.27 billion.

    PDD to announce Fiscal 2021 results next week

    Pinduoduo Inc. (PDD) is a China-based mobile-only marketplace that is a bridge between millions of agricultural producers and consumers across China. The company’s vision is to bring businesses and consumers into the digital economy so that maximum people can benefit from the thriving productivity and expand into new markets.

    The company announced in a press release that it would report its unaudited fourth quarter and fiscal 2021 results on March 21, 2022, before the market opens on Monday. The company’s management will hold the conference at 7:30 AM US Eastern Time on March 21, 2022.

    PDD: Q3 Key Financials

    • Pinduoduo Inc. (PDD) reported RMB21.5 billion ($3.3 billion) revenue, up 51% from RMB14.2 billion in the same period last year. Revenues from internet marketing services accounted for the majority of the increase.
    • PDD announced net income attributable to ordinary shareholders in the third quarter was RMB1.6 billion ($254.5 million), compared to RMB784.7 million in the same quarter of 2020.
    • Basic and diluted earnings per ADS for PDD were RMB1.31 ($0.20) and RMB1.15 ($0.18) in the 3rd quarter, respectively, compared to basic and diluted net losses per ADS RMB0.66 in the same quarter last year.

    Conclusion

    The company reported a good number s in the previous quarter, but this fourth quarter was full of challenges like inflation and omicron causing supply chain disruptions. Due to this, investors might be skeptical about the fourth-quarter results, and the stock is declining in the pre-market.

  • Guardforce AI Co., Limited (GFAI) surged in the current market; here is why?

    Guardforce AI Co., Limited (GFAI) surged in the current market after announcing the signing of the previously proposed agreement. GFAI values at $1.19, gaining more than 121.41% compared to yesterday’s closing price. The stock closed at $0.54 at the end of the last trading session. The stock volume traded in the previous trading session was around 4.15 million shares. The current market cap of the company is about $15.65 million.

    GFAI: The Acquisition

    Guardforce AI Co., Limited (GFAI) (GZ) signed an agreement of acquisition of Shenzhen Keweien Robot Service Co., Ltd. (SZ) and Guangzhou Kewei Robot Technology Co., Ltd. (KRT). Guardforce AI’s robotics-as-a-service (RaaS) business effort is likely to benefit significantly from this acquisition. The company expects that by the end of April the deal will be official.

    Located in China’s Greater Bay Area, Shenzhen and Guangzhou are two of the country’s most populous cities and among the world’s 30 most populous cities, respectively. SZ and GZ generate money through AI robotic services that automate repetitive jobs and reduce labor intensity in the hotel, healthcare, property management, and government sectors.

    GFAI: Acquisition details

    Payment of the $10 million acquisition purchase price will be made in a combination of 10% cash and 90% restricted ordinary shares of the Company. Guardforce AI is now traded on the Nasdaq Capital Market in the United States under the symbol GFAI. The pricing of each share is $4.20 for the purposes of the formal acquisition agreement

    GFAI: 2022 Outlook

    GFAI expects revenue forecasts for the entire year of 2022 at US$55-60 million, reflecting a gain of more than 66% over the previous year.

    The company forecasts that inorganic and non-cash revenues will total $21 million and $25.5 million, respectively.

    Conclusion

    The company inked the previously proposed agreement today. As a result of the deal, its stock has skyrocketed in the current market. It will have a significant effect on the revenue of the company.

  • RLX Technology Inc. (RLX) declined in the pre-market; here is why?

    RLX Technology Inc. (RLX) declined in the pre-market after announcing its unaudited fourth quarter and fiscal 2021 results. RLX values at $2.03, losing more than 13.25% compared to yesterday’s closing price. The stock closed at $2.34 at the end of the last trading session. The stock volume traded in the previous trading session was around 6.96 million shares. The current market cap of the company is about $3.15 billion.

    RLX: Q4 and Fiscal 2021 Key Financials

    • RLX Technology Inc.’s revenue in Q4 2021 was RMB1,904.4 million. It is an increase of 17.7% compared to the revenue of RMB1,618.5 million in Q4 2020.
    • Fiscal 2021 revenue was RMB8.5 billion, more than the revenue of RMB3.8 billion in fiscal 2020.
    • The company’s net income in Q4 2021 was around RMB494 million, compared to the net loss of RMB236million in Q4 2020.
    • RLX’s net income in fiscal 2021 was around $2.02 billion, and profitability increased massively compared to the net loss of $128 million in fiscal 2020.
    • The company’s basic and diluted earnings per share in Q4 were RMB 0.367, compared to the net loss of RMB 0.165.
    • RLX’s EPS in fiscal 2021 is RMB 1.445 compared to the loss per share of RMB 0.089 in fiscal 2020.

    RLX CEO’s Remarks

    CEO Ying (Kate) Wang of RLX Technology said in the fourth quarter of 2021. We delivered strong operational and financial results. Our focus throughout the year was on streamlining distribution and retail channels, investing in scientific research, new product development, and digitalization upgrades. Revenue increased by 123.1% in fiscal 2020, further solidifying our position as an adult smokers’ favorite e-vapor brand. With this in mind, we are confident in the Company’s ability to grow in 2022 and beyond.

    Conclusion

    The company sales increased due to the online distributors. RLX is focusing on revenue growth and market share, due to which they are not focusing on profitability. Profitability is the second phase of such a growth strategy.

  • Vertex Energy, Inc. (VTNR) stock surged in the current market; here is why?

    Vertex Energy, Inc. (VTNR) stock surged in the current market; here is why?

    Vertex Energy, Inc. (VTNR) surged in the current market after announcing its fourth quarter and fiscal 2021 results. VTNR values at $7.54, gaining more than 22.22% compared to yesterday’s closing price. The stock closed at $6.17 at the end of the last trading session. The stock volume traded in the previous trading session was around 3.25 million shares. The current market cap of the company is about $500.61 million.

    VTNR: Q4 and Fiscal 2021 Key Financials

    • Vertex Energy, Inc.’s revenue in Q4 2021 was $31.7 million. It is almost double the revenue of $17.4 million in Q4 2020.
    • Fiscal 2021 revenue was $115.7 million, 245% more than the revenue of $47 million in fiscal 2020.
    • The company’s net loss in Q4 2021 was around $5.3 million, an increase compared to the net loss of $2.9 million in Q4 2020.
    • VTNR net loss in fiscal 2021 was around $7.7 million, and profitability improved significantly compared to the net loss of $11.3 million in fiscal 2020.
    • For fiscal 2021, the basic and diluted loss per share was $0.36, compared to $0.67 in fiscal 2020.
    • As of 2021, the company had cash and cash equivalents of $36 million.

    VTNR: Acquisition of Mobile Refinery

    Vertex has agreed to buy a refinery in Mobile, Alabama from Equilon Enterprises LLC d/b/a Shell Oil Products US, Shell Oil Company, and Shell Chemical LP, companies of Shell plc.

    Vertex achieved many significant financial and commercial goals in the first quarter of 2022, ahead of the scheduled closing of the Mobile Refinery purchase.

    VTNR CEO’s Remarks

    Refinery performance at the Marrero and Heartland refineries enhanced refined product margins while increasing sales volumes drove record fourth-quarter and full-year earnings, according to Vertex Energy President and CEO Benjamin P. Cowart. The company’s fourth-quarter Adjusted EBITDA grew over $10 million from the prior year, excluding transaction costs associated with the proposed Mobile Refinery acquisition. Roughly the same as the fourth quarter, refined product margins were steady in January and February 2022.

    Conclusion

    Vertex Energy, Inc. (VTNR) entered 2022 at a steady pace. The company did not provide any guidance for 2022, but it seems that it will be focusing on increasing the revenue to increase its market share.

  • Hycroft Mining Holding Corporation (HYMC) surged in the current market; here is why?

    Hycroft Mining Holding Corporation (HYMC) surged in the current market; here is why?

    Hycroft Mining Holding Corporation (HYMC) gained significantly in the current market after the rise in global gold prices. HYMC values at $1.01, gaining more than 206.37% compared to yesterday’s closing price. The stock closed at $0.33 at the end of the last trading session. The stock volume traded in the previous trading session was around 698.35k shares. The current market cap of the company is about $50.99 million.

    HYMC: Rise in the gold prices

    Hycroft Mining Holding Corporation (HYMC) is a precious metal producing company owning a Hycroft Mine located in the mining region of North Nevada.

    Today the gold price has increased to its highest price since August 2020. Today the gold prices reached $2,000 per ounce. Due to this Hycroft Mining Holding Corporation (HYMC) gained value in today’s trading session.

    Investors are concerned about ongoing geopolitical scenarios. The Russia Ukraine war, covid-19 and inflation have affected every industry.

    Immediately following Russia’s invasion of Ukraine on February 24, 2022, the worldwide inflation rate and energy costs skyrocketed, with the latter increasing by as much as 400% in a matter of days.

    Russia is the world’s second-largest oil producer, and it presently accounts for 5% of total global oil consumption in terms of production. Saudi Arabia is the world’s largest oil producer, accounting for 15% of the world’s total oil production. Russia is also one of the world’s largest players in the provision of natural gas to the western hemisphere. Currently, Russia meets 30% of Europe’s gas demand and supplies gas to Europe through a gas pipeline network that spans Europe.

    As a result of these current scenarios, investors are moving towards owning different assets that don’t lose value in the meantime.

    Conclusion

    It seems like the current ongoing situation between Russia and Ukraine is not going anywhere soon. The tensions are escalating, causing severe supply chain disruptions and causing the inflation rate to spike. The companies like Hycroft Mining Holding Corporation (HYMC) dealing with oil and gas and precious metals like gold and silver will be huge gainers in the current situation.

  • Independence Contract Drilling, Inc. (ICD) gained in the current market; here is why?

    Independence Contract Drilling, Inc. (ICD) gained in the current market; here is why?

    Independence Contract Drilling, Inc. (ICD) gained in the current market after announcing its fourth quarter and fiscal 2021 results. ICD values at $4.66, gaining more than 8.12% compared to Friday’s closing price. The stock closed at $4.31 at the end of the last trading session. The stock volume traded in the previous trading session was around 264.79K shares. The current market cap of the company is about $48.48 million.

    ICD: Q4 and Fiscal 2021 Key Financials

    • Independence Contract Drilling, Inc.’s revenue in Q4 2021 was $28.6 million. It is an increase compared to the revenue of $13.3 million in Q4 2020.
    • Fiscal 2021 revenue was $88 million, witnessed a slight increase in the revenue compared to $83.4 million in fiscal 2020.
    • The company’s net loss in Q4 2021 was around $31.5 million, less than the net loss of $43.1 million in Q4 2020.
    • ICD’s net loss in fiscal 2021 was around $66.7 million, and profitability improved significantly compared to the net loss of $96.6 million in fiscal 2020.
    • The Q4 2021 loss per share was $3.23, compared to a net loss of $7.02 in Q4 2020.
    • For fiscal 2021, the loss per share was $8.89, compared to $19.69 in fiscal 2020.

    ICD CEO’s Remarks

    ICD’s CEO, Anthony Gallegos, said that ICD achieved all operational and financial targets in 2021. Market conditions are progressively improving as the supply of pad-optimal super spec rigs becomes scarce. Although I foresee a slowdown in rig reactivations in 2022 compared to 2021, I expect dayrate growth to continue. For this reason, ICD is well-positioned to benefit from the market’s improvement.

    ICD 2022 Outlook

    Revenue per day is expected to rise by roughly 14% sequentially in the first quarter of 2022 compared to the fourth quarter of 2021. The first and second quarters of 2022 are expected to show extensive sequential improvements in revenue and margin per day for ICD, and the second half of the year is expected to see even more significant gains.

    Conclusion

    The company’s profitability is improved this year compared to the last year. Due to this, the stock is gaining significantly in the current market today. The company expects to increase revenue in the upcoming quarters because of the existing contracts.