Huadi International Group Co., Ltd. (HUDI) stock plummeted 17.37% in the current-market trading session at the price of $22.64 despite no fundamental updates. The last published news was its cooperation agreement with Zhejiang Lanneng Gas Equipment Ltd for hydrogen storage tank pipes. HUDI is a leading producer of stainless steel pipes and tubes products with vast distribution networks and facilities for twenty provinces across China.
Cooperation Agreement with Lanneng
On 10th November 2021, HUDI announced signing a strategic cooperation agreement with Zhejiang Lanneng Gas Equipment Ltd on 28th October 2021. The partnership will facilitate both parties to develop and produce high-pressure hydrogen storage tank stainless steel pipes. Under the Contract, both groups will invest their resources to devise a manufacturing strategy for a hydrogen storage tank. Huadi International Group will construct the stainless steel pipes and provide liner pipes to Lanneng as per the plan. Lanneng will complete the production of these high-pressure hydrogen storage tanks wrapped by carbon fiber.
Chairman of the Huadi International Group, Mr. Di Wang, remarked that they are happy to work with Lanneng under this partnership agreement. Their collaboration targets the production and development of hydrogen storage tanks for the latest energy vehicles. They have seen a significant market switch from conventional fuel vehicles to advance energy vehicles in current years. The new energy vehicles will evolve into the next super-trending sector, as it has better replenishment capacities and endurance than the old fuel vehicles.
Mr. Wang further added that they are initiatively concentrating on tankage technology in China. It will improve their business potential in the vehicle industry shortly. They have strong R&D capacities, which will help them to diversify the products mix by producing more products. Their operation development plans and R&D capacity constituted the main drivers behind the business growth. Looking onwards, they will strengthen these drivers to realize their long-term development strategy in the new energy vehicle market, which is an emerging and highly unexplored field.