Microvast (US:MVST) ZACKS·2025-11-25 16:10Core Insights - Microvast Holdings' Huzhou Phase 3.2 project is crucial for expanding production capacity, expected to start initial operations in Q1 2026, adding nearly 2 GWh of annual capacity to meet strong customer demand [1][8] Group 1: Expansion Plans and Financials - The capital expenditure for Q3 2025 was $17.4 million, with $15.5 million allocated to the expansion plan, showing a reduction from $30.6 million in the same quarter last year, indicating effective cost management [2][8] - Management anticipates revenue growth of 18-25% and a gross margin of 32-35%, driven by the scalability from the Huzhou Phase 3.2 expansion [4][8] Group 2: Operational Risks - The company faces operational execution risks, particularly regarding the installation and commissioning of production equipment, which may be impacted by supply chain disruptions [3] Group 3: Market Performance and Valuation - Microvast's stock has increased by 357.6% over the past year, outperforming peers and the industry, which has seen a slight decline [5][8] - The company trades at a forward price-to-earnings ratio of 17.31, below the industry average of 22.65, but at a premium compared to Dave and First Advantage Corporation [9] Group 4: Earnings Estimates - The Zacks Consensus Estimate for Microvast's earnings per share for 2025 and 2026 has decreased by 10.5% and 31%, respectively, over the past 60 days [12]