This report is an updated version of the report published on 10 June 2025

Microvast Holdings, Inc. (NASDAQ: MVST)

MVST specializes in advanced battery technologies for electric vehicles and energy storage. The company focuses on electrifying commercial vehicles (including light, medium, and heavy-duty trucks, buses, trains, mining trucks, marine and port vehicles, automated guided vehicles, and specialty vehicles), developing energy storage systems (ESS), and manufacturing battery components.

Recommendation Rationale – SELL at USD 4.08

• Negative Financial Highlights: Cost of revenues increased by 14.58% YoY to USD 73.48mn in Q1FY25 vs USD 64.13mn in Q1FY24. Total current liabilities increased by 2.95% to USD 339.91mn as on 31 March 2025 vs USD 330.15mn as on 31 December 2024.
• Trading Near the Resistance: MVST stock has surpassed its R1 level recommended on 3 June 2025. Therefore, share price can face resistance at the current levels.
• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/Sales, EV/EBITDA, Price/Earnings) are higher than the median of Industrial Sector.
• Market Risk: Exposure to operational risks in China and other regions, including potential tariffs on Chinese products entering the U.S., could increase costs and affect competitiveness.

MVST’s Daily Price Chart

Valuation Methodology: Price/Earnings Approach (FY December'25E) (Illustrative)

Stock might trade at a slight premium to its peers considering YoY revenue and earnings growth in Q1FY25 and a 38% reduction in operating expenses during the same period. For conducting the valuation, the following peers have been considered: Caterpillar Inc (NYSE: CAT), REV Group Inc (NYSE: REVG), Astec Industries Inc (NYSE: ASTE), among others.

Considering that the stock has surpassed its R1 level, rally in share price, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the closing market price of USD 4.08, as of 9 June 2025.              

Microvast Holdings, Inc. (NASDAQ: MVST) is a part of Global Fully Charged Portfolio.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 9 June 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.