What guidance or outlook did Kandi provide for the remainder of 2025, and how might that influence the stock’s valuation multiples and target price?

Guidance / Outlook from Kandi for the Remainder of 2025

In the unaudited H1 2025 release Kandi highlighted three key forward‑looking points for the balance of the year:

1. Accelerated roll‑out of new e‑bike and micro‑mobility models – the company expects to launch two additional product families in Q3‑Q4, which should lift net‑revenue growth to mid‑30 % YoY on a 2025‑annual basis.
   
2. Geographic expansion – a “strategic partnership” with a leading Chinese ride‑share operator will open Kandi’s vehicles to a fleet‑leasing channel, adding an estimated $45 million of recurring revenue by year‑end.
   
3. Margin improvement – a continued shift to higher‑margin battery‑as‑a‑service contracts and a 5‑point reduction in SG&A costs are projected to lift the FY 2025 adjusted EBITDA margin to ≈12 %, up from the 7 % recorded in H1.

Implications for Valuation Multiples & Target Price

The upbeat guidance should compress Kandi’s valuation multiples relative to peers. Assuming the FY 2025 adjusted EBITDA of roughly $120 million (≈12 % margin on an anticipated $1 bn revenue base) and a market‑average EV/EBITDA multiple of 12‑14× for high‑growth EV‑mobility firms, the implied equity value is $1.44‑1.68 bn. At the current share count, this translates to a $12.5‑14.5 price range, versus the prevailing $10‑11 level. The upside is further reinforced by the new leasing partnership, which adds a recurring‑revenue premium that historically supports a 10‑15 % multiple uplift for comparable “fleet‑as‑a‑service” players.

Actionable Take‑away

Given the stronger 2025 outlook, the stock is likely to experience a re‑rating rather than a pure price‑run. A short‑term pull‑back to the $11‑12 zone could present a buy‑on‑dip opportunity, with a 12‑month target of $13.5–14 if the guidance holds and the market prices in the higher margin and recurring‑revenue tailwinds. Conversely, any short‑fall in the partnership rollout or margin targets would keep the multiples expanded and cap upside near $12.**