Broad weakness in the NASDAQ markets from open to close on Tuesday kept investors from paying attention to the potential star of the day- KULR Technology Group (OTC Other: KULR). Before the market opened, KULR announced an outstanding quarter of performance. To start, KULR expects to post a more than 400% year-over-year increase in revenues compared to the same period last year. For the period ending March 31, 2021, sales came in at $410,000 compared with $77,509 last year. It gets better.
Gross profit for the three months ended March 31, 2021, is expected to reach $140,000, representing another triple-digit percentage increase of over 170%, compared with $51,574 for the three months ended March 31, 2020. Undoubtedly, from an operational perspective, Q1 was the best performance in its history. The excellent news is that the trend toward record-setting reports is expected to continue.
In fact, Michael Mo, KULR Chief Executive Officer, and Keith Cochran, KULR President & COO, were not shy during their "Fireside Chat" yesterday to highlight KULR's plans to enhance its commercialization strategies in 2021. Better yet, with additions to its management team, a commitment to scale its manufacturing capabilities, and broadening its product offerings, their confidence is well placed to expect accelerated growth well beyond the 2021 guidance.
A Bullish KULR Story
The numbers tell the truth. Revenue growth in Q1 was tremendous, and the guidance is keeping the sentiment bullish. Key to KULR's massive revenue increase was its focus on expanding application areas for its innovative technologies. Last month, KULR took substantial steps to broaden its product offering by launching high-capacity lithium battery packs targeting the $127-billion commercial drone market. That move was the first step in KULR's overall strategy to maximize adjacent markets complementary to its established battery safety and thermal management products.
Targeting even more opportunities, KULR intends to expand into additional e-mobility markets in the coming year. Thus, expect 2021 to stay busy. And when companies are active, milestone announcements are often made. That's potentially great news for KULR investors.
Better still, investors should expect to hear more news about its space-proven technology fitted on Mars 2020 Mission Perseverance Rover. Not only did KULR technology help the rover to safely land on Mars, but it also led to the technology being applied to develop a thermal management testing and design platform for high-performance electric vehicle motorsports. In fact, KULR recently announced its partnership with Andretti Technologies, the technology arm of Andretti Autosport, to focus on developing peak performance and high-safety-rating battery products for mass-market EV applications.
For a small-cap stock, KULR is doing some very big things. And while the share price didn't react to its blowout quarter on Tuesday, expect that it will soon. Growth of this magnitude earns attention.
Video Link: https://www.youtube.com/embed/DbQxY156hGU
Huge Quarter Deserved
From the numbers, KULR is coming off one of the best quarters in its history. And deservedly so. KULR markets innovative, lifesaving thermal management solutions and is accelerating growth through a revenue-generating client list that includes Andretti Technologies, NASA, Airbus (OTC: EADSY), and Jet Propulsion Labs. That's just a few. Add defense contractors, drone makers, and consumer electronics manufacturers to get a more complete listing.
Keep in mind, KULR stock did what it was supposed to do during a record-setting quarter. Shares rose by 27% during the last two weeks of April. Now, with numbers reported, investors understand why shares rallied. Better still, there's plenty of room to run even higher.
Enormous contracts could be in the works with national defense contractors evaluating KULR's state-of-the-art products and technology for use in directed energy weapons and high-power missile programs. Those applications are in addition to other lucrative market opportunities that offer potentially massive near and long-term growth. Perhaps the part that justifies the bullish sentiment the most is that KULR technology may soon be considered a "must-have" inclusion to many products due to its inherent ability to mitigate fire and explosion in electric vehicles, electronics, and ion batteries.
Those markets can deliver exponential growth both near and long-term. Analysts agree.
Analysts Expect More Than 44% Upside In Share Price
Analysts at Taglich Brothers published a bullish report in April. In it, they modeled for significant share price gains, expecting KULR shares to reach $3.50 this year. If so, it represents a more than 44% increase from current levels. By the way, it's only 44% because KULR surged 27% last month. Taglich is on pace to hit its original call for a more than 70% increase for the year. Why is Taglich so bullish?
First, they note KULR's surging revenues, its tier-one client list, and game-changing thermal management technology as core competencies. Moreover, they like deals made with Andretti Technologies that combine with others to set KULR up for a breakout year. The great news is that pricing models are based on known variables. With new contracts likely to be announced in the coming days, weeks, and months, it's expected that analysts could revisit the analysis and revise higher. They did already, raising its initial $2.50 price target to $3.50 earlier this year.
They, too, may like the "read between the lines" deal made between Airbus and Luminor. In an agreement announced on April 26, Airbus tapped Luminar to test how lidar technology can make flying safer and autonomous. Sounds good for those two. But, it can also be a windfall for KULR.
While Airbus and Luminor could swap billions in contracts for each other, the excellent news for KULR and its shareholders is that its innovative batteries and battery pack solutions could end up being the products of choice in the finished products. Remember, companies don't test a specific product and then use a "similar" one. Thus, KULR technology could get validated again.
Better still, KULR is capitalizing on other potentially lucrative and diverse opportunities, which makes this company attractive on many levels. Energy Storage and Thermal Management markets are two focuses.
Capitalizing On Billion-Dollar Markets
Already busy, KULR is still committing itself to earn a substantial piece of the Energy Storage Market, a more than $59 billion revenue opportunity. While that's substantial now, Lux Research predicts that the market will explode to a $554 billion revenue opportunity by 2035. That's a 925% increase that could fall in KULR's lap. Know this, KULR isn't starting from scratch. They are already entrenched within that segment by commercializing and designing products to serve mobility applications, enhancing electronic device safety, and mitigating fire risks for stationary storage.
KULR is also paying attention to its opportunities in the $8.8 billion Thermal Management Market. There, KULR is targeting increased demand for reliable microelectronics and lithium-ion batteries. And with technology making products more durable, a by-product of that power is heat. That could put KULR in an enviable position to capitalize on massive TMM opportunities.
Moreover, with its passive propagation resistant (PPR) battery design showing the unique ability to prevent fire and explosion by providing a single cell thermal runaway from exiting the battery enclosure, its inclusion in millions of products, vehicles, and devices is likely to happen sooner rather than later.
The sum of the parts- KULR technology can be built for the masses. And it should be.
Q1 Could Be The Prelude To A Breakout 2021
The Q1 report showed what's happening at KULR. The company is in hyper-growth mode. But expect growth to get even hotter. KULR has exceptional management, a solid balance sheet, innovative products, and the expertise to transform development stage projects into commercialized revenue-generating assets.
Even better, KULR is capitalizing on diverse market opportunities to monetize multiple shots on revenue-generating goals. And by inking a deal with only one of its billion-dollar clients, it's valuation could surge. But, it's more likely that KULR will enjoy multiple contracts with multiple clients. Bottom line- its technology is that good.
And with the demand for electric vehicles, 5G technology, and thermal energy markets soaring worldwide, KULR's blowout Q1 is most likely the precursor of bigger and better results to come.
The timing of its stellar Q1 report hit on a bad market day. However, the numbers they posted won't stay hidden for long. Expect the gains deserved.
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