Microvast (US:MVST) ZACKS·2025-10-10 17:11Core Insights - Microvast Holdings (MVST) shares have surged 119.4% year-to-date, significantly outperforming its industry growth of 44.3% and the Zacks S&P 500 Composite's 15.7% increase [1][6] - The company's True All-Solid-State Battery (ASSB) technology has enhanced its financial performance, contributing to a 9.2% year-over-year revenue growth and a positive adjusted EBITDA of $25.9 million [3][4][6] - The expansion of production capacity in Huzhou by 2 GWh is expected to strengthen Microvast's market share in the nickel manganese cobalt (NMC) battery sector, which is projected to grow significantly [8][9] Financial Performance - MVST's revenue for the June-end quarter increased by 9.2% year-over-year, with gross margins expanding by 220 basis points [3][6] - The adjusted EBITDA improved from a negative $78.4 million in the previous year to $25.9 million, indicating a strong turnaround in profitability [4][6] - The Zacks Consensus Estimate projects revenues of $462.3 million for 2025, reflecting a 21.7% year-over-year growth, and $563.5 million for 2026, suggesting a 21.9% increase [13] Market Position and Valuation - The global NMC battery market was valued at $31.1 billion in 2024, with a projected CAGR of 15.1% from 2025 to 2034, indicating a robust growth environment for Microvast [9] - MVST's stock is currently priced at 17 times forward 12-month EPS, significantly lower than the industry average of 30.9 times, suggesting a potential undervaluation [10] - Analysts have revised the EPS estimates upward for both 2025 and 2026, with a 46.2% increase for 2025 and a 20.8% increase for 2026, reflecting growing confidence in the company's future performance [14]