Borqs (BRQS) stock rose 13% after subsidiary bags US$49.8-mn contract

Published on July 01, 2022 09:38 AM PDT

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Borqs (BRQS) stock rose 13% after subsidiary bags US$49.8-mn contract — Image source: © Andreus | Megapixl.com

Highlights:

Borqs Technologies, Inc. (NASDAQ: BRQS) offers software, services, and IoT products.

It was founded in 2007 and went public in 2015.

BRQS stock declined 73.71% YTD at the closing price of US$1.67 on June 30, 2022.

Borqs Technologies, Inc. (NASDAQ: BRQS) stock grew over 13% in intraday trading on Friday. It was priced at US$1.8901 at 11:23 am ET.

The company provides software, cloud solutions, IoT products, and services. Its IoT products come with customizable and scalable Android-based smart connected devices.

The stock price rose after the company announced that its majority-owned subsidiary company, Holu Hou Energy LLC, signed a US$49.8-million contract with property owners and developers on June 30. Holu Hou provides solar energy storage systems.

The company will execute nine solar energy storage projects in Hawaii. The project will start in the third quarter of 2022 and is expected to complete in 2023.

The company will supply solar storage systems to multi-dwelling residential units. Holu Hou’s technology uses 50% fewer batteries and provides roughly 25% more energy.

Pat Chan, founder and CEO of Borqs, is optimistic about signing US$140 million contracts this year, exceeding its previous US$128 million forecasts. He said in a press release that more business is expected from Hawaii in the coming quarters, and the company sees potential in California too. Borqs’ robust growth expectations come from its expanding renewable energy segment.

Financials:

Currently, it has a market capitalization of US$32 million. The BRQS stock rose to the highest of US$19.36 and the lowest of US$1.65 in the last 52 weeks.

For the fiscal year ended December 31, 2021, its net revenue was US$29.5 million compared to US$26.7 million in the previous fiscal year.

The company incurred a net loss of US$56.6 million, or US$0.47 per diluted share, compared to the net loss of US$34.8 million, or US$0.81 per share diluted in the March quarter of 2021.

Bottom line:

Founded in 2007, Borqs went public in 2015. The stock closed at US$1.67 on June 30, 2022, with a 73.71% YTD drop. The company offers its products and services in China, India, and the US. Investors should exercise caution before investing in the volatile stock market.