New Energy Systems Group (AMEX: NEWN)

Investor Presentation


New Energy Systems Group is a vertically integrated original design manufacturer and distributor of lithium ion batteries and backup power systems for mobile phones, laptops, digital cameras, MP3s and a variety of other portable electronics.  The company’s end-user consumer products are sold under the Anytone brand in China, and the company has begun expanding its international sales efforts. The fast pace of new mobile device introductions in China combined with a growing middle class make it fertile ground for New Energy’s end-user consumer products, as well as its high powered, light weight lithium ion batteries. In addition to historically strong organic growth, New Energy is expected to benefit from economies of scale, broader distribution, greater production capacity and higher profit margins in 2010. 

Investment Highlights:

  • Rapidly growing market for lithium ion batteries
  • Established management team with strong industry contacts
  • Recent acquisitions help to transform into higher margin, vertically integrated company
  • 2010 results will benefit from recent acquisitions and continued organic growth
  • 2009 projected EPS of $0.91-$1.00 and 2010 projected EPS of  at least $1.23*
  • Excess capacity enables significant growth without meaningful capital expenditures
  • Unlevered balance sheet with no near-term need for equity
  • Insider ownership of 21% provides incentive to create shareholder value

*  Excludes non-cash charges related to recent acquisitions