Cenntro Electric Group Limited

Cenntro Electric Group Limited (NASDAQ: NAKD) is a business that manufactures intimate apparel and swimwear. A portfolio of company-owned and licensed brands is designed, manufactured, and marketed by the company.

Key Highlights

• The company reported a decline of 20.21% in revenues to USD 6.57 million during H1FY21 (ended July 31, 2021) compared to USD 8.24 million during H1FY20.
• Net loss during H1FY21 increased to USD 48.77 million from USD 11.56 million in H1FY20.
• On December 31, 2021, NAKD reported that the previously announced acquisition of the outstanding capital stock of three Cenntro Automotive Group entities was completed. After the transaction was completed, the company changed its name to "Cenntro Electric Group Limited".
• The company operates at a significantly lower net margin of -53.4% in Q2FY21 vs. an industry median of 12.0%.
• Stock is currently trading below its crucial long-term as well as short-term 50-day and 200-day SMA support levels, a bearish indicator.
• Stock is made a new 52 week low today.
• NAKD's share price has declined 67.14% and 58.29% in the past three and six months.

Technical Price Chart (as of January 12, 2022). Analysis by Kalkine

Conclusion: Given the lackluster fundamentals, a significant correction in the stock price in the past three months and lack of visibility in bottom-line growth, we recommend an "Avoid" rating on the stock at the current price of USD 3.34, down 3.75% as of January 12, 2022, at 9:56 AM ET.

*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.