Nano Labs Ltd. Sponsored ADR Class A (NA) AI Stock Analysis

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Nano Labs Ltd. Sponsored ADR Class A

(NASDAQ:NA)

47Neutral

Nano Labs is navigating significant financial hurdles, marked by declining revenues and persistent losses. While there are some improvements in the balance sheet and strategic moves in the earnings call, the technical indicators suggest ongoing bearish trends, and valuation metrics indicate challenges. The company's strategic shift towards Bitcoin and technology advancements could provide future opportunities, but current financial and market conditions remain concerning.

Nano Labs Ltd. Sponsored ADR Class A (NA) vs. S&P 500 (SPY)

Market Cap

$69.44M

Dividend YieldN/A

Average Volume (3M)13.64K

Price to Earnings (P/E)―

Beta (1Y)0.29

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees88

SectorTechnology

Sector Strength80

IndustrySemiconductors

Share Statistics

EPS (TTM)-0.95

Shares Outstanding14,285,610

10 Day Avg. Volume8,589

30 Day Avg. Volume13,640

Financial Highlights & Ratios

PEG Ratio-0.86

Price to Book (P/B)9.39

Price to Sales (P/S)0.00

P/FCF Ratio-3.18

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Nano Labs Ltd. Sponsored ADR Class A Business Overview & Revenue Model

Company DescriptionNano Labs Ltd operates as a fabless integrated circuit design company and product solution provider in the People's Republic of China and internationally. The company develops high throughput computing and high-performance computing chips. It also offers distributed computing and storage solutions, smart network interface cards, and vision computing chips, as well as distributed rendering technology. In addition, the company engages in the research and development of software. Its customers include enterprises and individual buyers. The company was incorporated in 2019 and is headquartered in Hangzhou, the People's Republic of China.

How the Company Makes MoneyNano Labs Ltd. generates revenue through the sale of its high-performance computing products and services. The company's revenue streams include the commercialization of computing hardware, such as processors and servers, that are optimized for blockchain and AI applications. Additionally, Nano Labs offers software solutions and services designed to enhance the efficiency and scalability of blockchain networks. The company may also engage in strategic partnerships with other technology firms to expand its product offerings and reach new markets, contributing to its overall earnings.

Nano Labs Ltd. Sponsored ADR Class A Financial Statement Overview

Summary

Nano Labs is grappling with financial difficulties, marked by declining revenues, persistent losses, and negative cash flow. However, there are signs of improvement in the balance sheet with increased equity and reduced debt.

Income Statement

Negative

Nano Labs has experienced a significant decline in revenue from 2022 to 2023, with revenue dropping from $98.3 million to $78.3 million. The net profit margin is deeply negative in recent years, indicating substantial losses. EBIT and EBITDA margins are also negative, highlighting operational challenges. The company needs to address these profitability issues to improve its financial health.

Balance Sheet

Neutral

The company's debt-to-equity ratio improved in 2023, with total debt decreasing and stockholders' equity recovering from negative to positive. Despite this improvement, the equity ratio remains low, indicating a high reliance on debt. The return on equity is negative due to consistent net losses, which is a concern. However, the balance sheet shows potential stabilization with increased assets and equity in the latest period.

Cash Flow

Neutral

Cash flow from operations remains negative, but the company has managed to secure financing to support its cash needs. Free cash flow is negative, indicating cash outflows exceed inflows, which raises concerns about the company's ability to sustain its operations without external funding. Improvement in free cash flow growth is necessary for long-term viability.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
50.81M	40.60M	78.34M	983.17M	39.44M	2.13M
	Gross Profit
20.25M	11.60M	-103.45M	230.16M	-4.09M	856.13K
	EBIT
-152.70M	-98.51M	-260.79M	3.84M	-178.79M	-36.92M
	EBITDA
-117.31M	-100.99M	-243.27M	20.68M	-168.90M	-37.08M
	Net Income Common Stockholders
-177.27M	-113.19M	-252.82M	47.97M	-176.31M	-37.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.68M	275.32M	50.53M	87.81M	265.74M	35.33M
	Total Assets
15.37M	615.93M	350.30M	367.24M	909.83M	61.49M
	Total Debt
1.43M	198.87M	150.88M	23.67M	7.35M	5.74M
	Net Debt
12.11M	166.43M	102.72M	-64.14M	-226.51M	-29.59M
	Total Liabilities
27.50M	383.03M	366.56M	202.83M	934.49M	110.01M
	Stockholders Equity
-11.03M	230.79M	-14.73M	164.41M	-24.66M	-48.52M
Cash Flow		Free Cash Flow
-228.00M	-175.70M	-238.96M	-341.76M	63.04M	-3.96M
	Operating Cash Flow
-175.59M	-139.33M	-133.47M	-274.94M	71.73M	-3.03M
	Investing Cash Flow
-52.40M	-256.77M	-105.48M	-33.18M	-36.05M	-1.65M
	Financing Cash Flow
229.35M	375.98M	199.52M	161.00M	164.90M	29.36M

Nano Labs Ltd. Sponsored ADR Class A Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.05

Price Trends

50DMA

4.64

Negative

100DMA

5.92

Negative

200DMA

5.77

Negative

Market Momentum

MACD

-0.15

Positive

RSI

37.55

Neutral

STOCH

50.64

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NA, the sentiment is Negative. The current price of 4.05 is below the 20-day moving average (MA) of 4.60, below the 50-day MA of 4.64, and below the 200-day MA of 5.77, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 50.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NA.

Nano Labs Ltd. Sponsored ADR Class A Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTT	70 Outperform	$75.71M	25.19	-0.10%	―	5.19%	-101.31%
Sector *	60 Neutral	$11.62B	10.48	-7.27%	2.93%	7.46%	-10.64%
GSIT	52 Neutral	$86.79M	―	-33.15%	―	-5.73%	47.83%
ASYS	51 Neutral	$49.81M	40.38	-47.90%	―	-16.52%	-46.13%
AXTI	48 Neutral	$67.95M	―	-9.50%	―	21.44%	-8.49%
NA	47 Neutral	$69.44M	―	1716.04%	―	―	―
GCTS	32 Underperform	$59.20M	―	17.45%	―	94.76%	-146.39%

* Technology Sector Average

Performance Comparison

Nano Labs Ltd. Sponsored ADR Class A

4.05

-1.90

-31.93%

ASYS

Amtech Systems

3.52

-1.76

-33.33%

AXTI

AXT

1.49

-1.84

-55.26%

GSIT

GSI Technology

3.39

0.56

19.79%

INTT

inTEST

6.06

-3.95

-39.46%

GCTS

GCT Semiconductor Holding

1.29

-4.01

-75.66%

Nano Labs Ltd. Sponsored ADR Class A Earnings Call Summary

Earnings Call Date:Sep 18, 2024

(Q4-2024)

% Change Since: -15.27%|

Next Earnings Date:Mar 25, 2025

Earnings Call Sentiment Neutral

Nano Labs has achieved significant improvements in gross profit and reduction in net loss, along with a strategic shift towards Bitcoin investment and launching advanced technology like the Cuckoo 3.0 chip. However, they faced challenges including a decline in net revenue, increased administrative expenses, and reduced cash reserves.

Q4-2024 Updates

Positive Updates

Introduction of Bitcoin as Primary Reserve Asset

Nano Labs has officially established Bitcoin value investment as a new business sector and designated Bitcoin as their primary reserve asset. The company holds about 400 BTC with a total purchase price of around $40 million.

Launch of Cuckoo 3.0

In December 2024, Nano Labs launched an upgraded complete machine equipped with a Cuckoo 3.0 iteration chip, delivering enhanced performance and providing key competitive advantages.

Gross Profit Improvement

The company recorded a gross profit of RMB11.57 million ($1.61 million) for the second half of 2024 compared to a gross loss of RMB40.55 million in the same period of 2023.

Decrease in Operating Expenses

Total operating expenses for the second half of fiscal year 2024 decreased by 38.7% to RMB51.39 million ($7.15 million), down from RMB83.84 million in the same period of 2023.

Reduced Net Loss

Net loss was RMB60.39 million ($8.4 million) for the second half of 2024 compared to a net loss of RMB120 million in the same period of 2023.

Negative Updates

Decline in Net Revenue

Net revenue was RMB15.86 million ($2.21 million) in the second half of 2024 compared to RMB26.07 million in the same period last year, primarily due to the decrease in sales volume of iPollo V Series product.

Increase in General and Administrative Expenses

General and administrative expenses increased by 30.5% to RMB25.38 million ($3.83 million) for the second half of 2024 from RMB22.38 million for the same period of 2023, primarily due to the increase in depreciation expenses.

Decrease in Cash and Cash Equivalents

As of December 31, 2024, the company had cash and cash equivalents of RMB32.43 million ($4.51 million) compared with RMB48.16 million as of December 31, 2023.

Company Guidance

During the second half of 2024, Nano Labs focused on strategic business expansions and financial optimizations to navigate market challenges. The company reported a net revenue of RMB15.86 million ($2.21 million), a decrease from RMB26.07 million in the same period last year, primarily due to reduced sales of the iPollo V Series product. However, they achieved a gross profit of RMB11.57 million ($1.61 million), reversing a gross loss of RMB40.55 million from the previous year. Operating expenses decreased by 38.7% to RMB51.39 million ($7.15 million), with significant reductions in research and development expenses by 61.9% and selling and marketing expenses by 17.7%. Despite a net loss of RMB60.39 million ($8.4 million), the company improved from a RMB120 million loss in the previous year. Cash and cash equivalents stood at RMB32.43 million ($4.51 million) as of December 31, 2024. The company emphasized its strategic investment in Bitcoin as a primary reserve asset, holding about 400 BTC valued at approximately $40 million, and outlined future plans to capitalize on AI and Web3.0 integration to drive growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.