Lithium Americas Corp.

Lithium Americas Corp. (NYSE: LAC) is concentrating its efforts on bringing the Cauchari-Olaroz project in Argentina, and the Thacker Pass project in the United States, to production.

Key Highlights:

• The Company has posted a net loss of USD 17.21 million in Q3 FY21 compared to USD 6.48 million in Q3 FY20 due to higher Thacker Pass expenditure.
• Since the Company is in its development stage and has yet to generate any revenue, it may be risky for the investors to take any position on the stock.
• The Company has increased its loan facilities to USD 172.27 million as of September 30, 2021, compared to USD 121.22 million as of December 31, 2021.
• Because the industry in which the Company works requires a lot of capital, most of the Company's spending is connected to capital programmes. As a result, the Company is at risk of running out of money because it is not earning.
• The stock is trading below its SMA 50 and above 200-days support levels along with an RSI of ~47.84, which indicates a bearish trend.
• The stock is leaning towards the lower band of the 52-week range of USD 11.84 to USD 41.56.

Stock Recommendation

Based on Company's performance, increase in losses, non-generation of revenue, increase in loan facilities and bearish technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 28.27, up 5.05% as of February 8, 2022.

LAC’s 1-Year Technical Price Chart. (Source: REFINITIV, Analysis by Kalkine Group)

. *The reference data in this report has been partly sourced from REFINITIV.

Nio Inc Class A ADR

Nio Inc Class A ADR (NYSE: NIO) is an automotive manufacturer based in China, specializing in electric vehicles. It also provides subscription services and charging solutions to the growing EV market.

Key Highlights:

• On January 3, 2022, the company announced repurchase right notification for 4.5% senior convertible notes, which is due in 2024. The repurchase right expires at 5:00 p.m. on Friday, January 28, 2022 (New York City time).
• The company's total revenue has increased by 116.6% to USD 1,521.8 million in Q3 FY21 compared to USD 702.44 million in Q3 FY20.
• EBITDA margins of the company are improving, from -21.9% in FY20 and -7.9% in FY21 to a near break-even -0.2% in FY22. Hence, NIO may begin generating profits in the coming quarters.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, indicating a bearish trend
• Stock is leaning towards the lower band of the 52-week range of USD 19.31 to USD 64.60.

Stock Recommendation

Based on the macroeconomic conditions, increase in revenue, negative EBITDA, and bearish technical indicators. We suggest keeping an eye on the stock as the company primarily depends on China market. Hence, we recommend a "Watch" rating on the stock at the closing price of USD 24.69, up 2.91% as of February 8, 2022.

NIO’s 1-Year Technical Price Chart. (Source: REFINITIV, Analysis by Kalkine Group)

*The reference data in this report has been partly sourced from REFINITIV.

Niu Technologies

Niu Technologies (NASDAQ: NIU) creates high-performance smart e-scooters and sells them. Smart e-scooters based on advanced and innovative technologies, such as engine and battery technologies, and automotive-inspired features, have been developed by the business.

On March 7, 2022, Niu Technologies will release its fourth quarter and full-year 2021 results.

Key Highlights:

• The Company posted revenue of RMB 1226.4 million in Q3 FY21 from RMB 894.5 million in Q3 FY20. Whereas the per-unit revenue of the Company stood at RMB 3089 in Q3 FY21 against RMB 3565 in Q3 FY20, resulting in a decline of 13.4% mainly due to change in product mix.
• As per the recent announcement on January 4 2022, the Company's total sales volume for the Q4 FY21 was 238,188 against 150,465 in Q4 FY20.
• The Company’s gross margin was 20.0% in FY21, compared to 20.9% in FY20. Lower international sales primarily caused the drop. Further adjusted net income margins were 8.3% and 10.1% in FY 21 and FY20.
• Changes in China's economic, political, or social situations and government policies may hurt the Company's operations.
• From a technical viewpoint, the stock is currently trading below its crucial support level of SMA 50 and 200 days, indicating a bearish trend.
• The stock is leaning towards the lower band of the 52-week range of USD 11.90 to USD 53.38.

Stock Recommendation

Considering the recent quarter financials, revenue mix, decreasing margins, other macro factors and unfavourable technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 13.58, down 2.02% as of February 8, 2022.

NIU’s 1-Year Technical Price Chart. (Source: REFINITIV, Analysis by Kalkine Group)

. *The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.