Highpower Says Revenue and Income Climbed in Fourth Quarter; Shares Slip
Highpower International Inc. (Nasdaq: HPJ), a maker of lithium-ion and other battery products, reported today that both revenue and income for the fourth quarter climbed more than 10 percent.
The company, with headquarters in San Diego and Shenzhen, said sales in last year's final three months grew to $88.7 million, up 12 percent from $79.2 million a year earlier.
Net income attributable to the company was $5.4 million, or 35 cents per fully diluted share, compared with $4.8 million, or 31 cents per share, in the same quarter in 2017.
Highpower, which derives three-quarters of its revenue from the sale of lithium-ion batteries, said that segment jumped 38.5 percent in the period. The company's gross margin rose to 23.1 percent versus 14.9 percent the year before.
"We are pleased to report that our top-line performance beat our guidance for both the fourth quarter and full year 2018, thanks to growing demand for high quality and high safety rechargeable batteries and total solutions from the high-end consumer product, industrial application, artificial intelligence and wearable product industries," said George Pan, the company's chairman and chief executive officer. "Our strategy of focusing on target applications and customers started to yield results, with net sales growing more than 20% year over year in 2018."
For the full year, however, the company said its net income fell 21.6 percent to $13.2 million, or 84 cents per share. Sales in the 12 months rose 20.4 percent to $293.9 million.
Shares in Highpower, which reported earnings before the markets opened in New York, fell more than 4 percent to $3.25 per share in mid-afternoon trading.
The company, which makes both nickel-metal hydride (Ni-MH) and lithium-based rechargeable batteries, sells to various industries internationally, including producers of electric buses, bikes, energy storage systems, power tools, medical equipment, digital and electronic devices, personal care products, and lighting.
For the first quarter of 2019, Highpower said it expects revenue to grow more than 20 percent year-over-year with its gross margin to remain about 20 percent.
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