Higher Forklift Demand Helped Greenland Clock 70% Q2 Revenue Growth, FY21 Guidance Hike

Greenland Technologies Holding Corp GTEC reported second-quarter FY21 revenue growth of 70.1% year-on-year to $28.2 million, beating the analyst consensus of $20.6 million.
Significant sales volume increased from the continuously growing market demand, and the ability to boost supplies drove the growth.
The number of transmission products sold increased 48.5% Y/Y to 42,046 units.
Margins: The gross margin expanded 280 bps to 20.2% due to a shift in the product mix towards the higher value and more sophisticated products like the hydraulic transmission.
The operating margin rose 60 bps to 8% due to higher costs.
Net income rose 114.2% Y/Y to $3.2 million. EPS of $0.26 beat the analyst consensus of $0.11.
Greenland held $20.5 million in cash and equivalents.
Greenland benefitted from strong demand as forklifts were the ultimate necessity for clients moving raw materials, components, and finished goods through a global supply chain to meet accelerating growth.
Guidance: Greenland raised FY21 revenues from $80 million - $90 million to $90 million - $100 million, implying 35% - 49% Y/Y growth against the analyst consensus of $90.8 million.
Price action: GTEC shares closed 5.88% higher at $6.84 on Tuesday.

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