BWAQ
Blue World Acquisition Corporation Class A
stockNASDAQ

TOYO Co., Ltd. engages in the upstream production of wafer and silicon, midstream production of solar cell, downstream production of photovoltaic (PV) modules, and other stages of the solar power supply chain. Additionally, the company also manufactures solar PV modules. The company was founded in Japan in 2022. TOYO debuted on the nasdaq through a SPAC with BWAQ back in July 2024. The company immediately dropped from its SPAC price of $10 to a low of $1.36 the month of July like any SPAC has done over the past 2 years. However since then the stock has rebounded back to $5.41 as investors start to review the financials and notice the valuation/growth potential. Recent News: The company just entered into a 150m contract to supply solar cells to a solar module manufacturer in both India and Texas over the next couple of years. This is a new contract with a new client resulting in new revenue for the upcoming years. The stock jumped 81% on this news yesterday. This contract will be reflective in the 2025 financials and 2026 financials. 2023 Full Year Financials : (Incorporated in 2022 and already significant revenue and profitability) Revenue 62.3M Income: 12M (profit margin19% Market Cap: 240m (Expect it to be closer to 200m in the next few weeks as it sells off from its 80% move yesterday) P/E of 29 ( was sitting at 17 P/E before 80% movement Profit on new 150m Contract: Assuming Margins of 20% we can extrapolate 30m of additional net income to be broken out over 2025 and 2026. 2024 Financials will be reported in early 2025 (reported on a annual basis) 2025 Financial Estimate (estimated 10% existing growth from 2023 on low end based on prospectus) Revenue (62.3 \*10% annual growth + 75m new contract) Revenue = 143m Income = 27m (19% margin - expect this to increase as revenues grow - used low end) Future P/E - 8.9 I would recommend keeping this stock on your radar and waiting until there is a pull back prior to 2024 earnings to enter. The company has been putting out a lot of news of new contracts recently so the price may fluctuate significantly in the mean time however this company is looking at a P/E of 9-10 in 2025 while its competitors are all either operating at losses or they are in the 25-40 P/E ratio. This does not factor in TOYO's revenue growth which is expected to be 50-80% a year after factoring in the new contracts on the horizon.