Through its impressive portfolio of subsidiaries, Universal Power Industry Corporation (OTC:UPIN) owns and manages businesses in sectors ranging from consumer and industrial products to technology. By combining both innovation and prominent key personnel, the company is focused on consistently delivering prime products and services to its clients. With the company acquiring a supply chain logistics company, UPIN could be poised for additional financial growth in the future. Meanwhile, UPIN was recently granted preferred exporter status. In light of the company’s ambitious moves, UPIN stock could be one of the best industrial stocks this year.
UPIN Stock News
Showing impressive growth signs in its latest Q4 report, UPIN has garnered much interest from investors. The company reported total assets worth over $6 million – almost doubling its $3.8 million in assets from the year-ago period. UPIN also saw its revenue increase from only 934 thousand in the previous year to almost $2 million. With this in mind, it is no surprise the company saw its net income increase to reach $507,000- compared to only $73,000 in the previous year.
This financial growth is largely attributed to the company’s previous denim manufacturing factory acquisition. In July of 2021, UPIN finalized this acquisition through one of its main subsidiaries – Play Market. Engaged in the designing, importing and wholesaling of apparel to retail and online outlets, Play Market estimated the new factory will increase production by an average of 16 to 18 percent.
Bullish on the acquisition, President Tony Chiu emphasized that “the company has complete control over its denim manufacturing, scheduling, shipping and cost control”. The factory has a competitive advantage given its strategic location in Guangdong – a special economic zone with tax incentives for exporting companies. This southeast province is known for many things but mostly for having a large number of experienced labor as well as easy access to shipping.
Chiu has assured investors that this acquisition is only the beginning of further expansion and that “the company is looking forward to acquiring another denim manufacturing factory in China or Vietnam for the production of other non-denim product lines.” In light of this, UPIN has been in communication with investors and has recently teased an upcoming announcement regarding its ongoing projects. Given Chui’s previous comments, many are bullish these news could be related to a possible acquisition.
With a market cap of only $1.4 million, many investors believe UPIN could be severely undervalued in light of the company’s ongoing expansion efforts and financial growth. For this reason, many are bullish the company has so much room to grow as it announces upcoming projects and acquisitions. Given its solid share structure with an OS of 51 million, UPIN has a low float of 16 million and seems poised for a major run-up as more news come to light. For this reason, investors are considering UPIN one of the most promising industrial stocks heading into the next month.
*Updated February 28th
The company just announced that it is increasing its AS from 25 million to 60 million and has drawn down 35 million restricted shares in preparation for its pending acquisition. The company reassured investors that there has not been any issuance of free trading shares and the float remains around 16 million. Earlier in the month, the company saw an increase of 5,065,047 in its OS which was caused by a restricted control block of shares that was in the process of being rescinded.
*Updated July 12th
With investors anticipating the company’s planned acquisition, UPIN closed the deal as it acquired The Import Export Group, Inc (IEG) in exchange for $2.1 million in cash and stocks. On that note, UPIN shared that the stocks issued to close this acquisition are restricted for 12 months. Moreover, UPIN has the first right of refusal to purchase some or all of the shares back – reducing shareholders’ dilution risk. Through this acquisition UPIN has the potential to realize more financial growth since it would add between $1.6 to $1.8 million to its revenues. Meanwhile, UPIN expects the acquisition to significantly reduce its outsourced logistical costs since the company would be able to control its own logistics internally.
With this in mind, it is worth mentioning that IEG is one of the fastest growing logistics companies in the US and has provided services to retailers and wholesalers in the US, Canada, and globally. Based on this, UPIN could be well-positioned to grow its business globally as it now controls its own logistics company. With UPIN moving forward with its aggressive acquisition strategy, Chiu is bullish this strategy “will complement other upcoming acquisitions and new contracts that are in the pipeline”. In light of this, UPIN stock could be one of the industrial stocks to watch this year in anticipation of the company’s upcoming deals to roll out.
Meanwhile, UPIN’s subsidiary Play Market has been growing its business as it agreed to purchase 6 containers containing 180 thousand pieces of Elie Tahari women’s denim wear for resale to its vendors. Based on this deal, UPIN projects to realize a net gain of $315 thousand which will further boost the company’s financials. At the same time, Play Market purchased 240 thousand pieces rue21 jr. denim jeans to be resold to retailers like TJ Maxx, Marshalls, and Burlington. Through this deal, UPIN expects a return of $1.25 per piece. In light of these deals, UPIN has the potential to further improve its financials in the coming quarters.
As the company is looking to achieve more growth, UPIN was recently granted preferred exporter status. Through this designation, UPIN will expedite manufacturing credit facilities and shipping priority. Considering that the company already produces denim products in China, UPIN could now be able to export its products to the US at a faster pace – allowing the company to sell more products in the US. In light of this designation, UPIN stock could be one of the industrial stocks to watch as the company continues growing its business.
UPIN Stock Financials
According to its latest quarterly report, UPIN has $8.2 million in assets and $7.4 million in liabilities. Meanwhile, UPIN reported $2.1 million in revenues and has operating costs of $186.6 thousand. Based on this, UPIN reported a net income of $539 thousand. In addition to these encouraging financials, the company’s report showed that the company has no convertible debt – eliminating any dilution risk to its shareholders.
Media Sentiment
@hustle4ever77 is confident UPIN stock could be worth $1 based on its EPS.
@RadioSilentplay believes UPIN could be poised to run considering that it is near its bottom.
Technical Analysis
Currently trading at $.0341, UPIN stock has supports at .0297 and .0236. UPIN also shows resistances near .0361 and .0416. Considering the company’s efforts for growth, UPIN is emerging as one of the industrial stocks to hold for the long-term. UPIN stock recently retested its MA support and bounced. If the stock continues to hold this support, UPIN could run near $.036. With this in mind, bullish investors could find a good entry point on retests of supports.
Accumulation is trending upwards due to investors’ confidence in UPIN’s long-term potential. However, the MACD recently turned bearish after crossing over. The RSI is holding at 53 which could be a sign of a strong movement in either direction with high volume. As is, UPIN has an OS of 56.1 million and a float of 21.1 million.
UPIN Stock Forecast
After acquiring IEG, UPIN is positioning itself for major growth since it now owns its logistics company. This acquisition would allow UPIN to increase its revenues while reducing its logistics costs. With this in mind, UPIN becoming a preferred exporter is expected to allow the company to capitalize on its denim manufacturing factory in China and realize more revenues by increasing its denim offerings in the US. Considering that the company is continuing to grow financially, many investors are confident UPIN could be extremely undervalued at its $1.9 million market cap. In light of this, UPIN stock has the potential to be one of the hottest industrial stocks in 2022.
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