Greenland Technologies (GTEC Quick QuoteGTEC - Free Report) shares have appreciated 6.1% year to date (YTD), lagging the Zacks Electronics – Miscellaneous Products industry’s return of 10.7% but outperforming the Zacks Computer and Technology sector’s return of 4.4%.

Greenland is a developer and a manufacturer of drivetrain systems for material handling machineries and electric industrial vehicles (HEVI). Through its China-based subsidiaries, Greenland offers transmission products, which are key components for forklift trucks used in manufacturing and logistic applications. According to Grand View Research, the automotive transmission components market is estimated to witness a CAGR of 5.6% between 2025 and 2030. 

Greenland faces stiff competition from Dana Incorporated (DAN Quick QuoteDAN - Free Report) , BorgWarner (BWA Quick QuoteBWA - Free Report) , and American Axle & Manufacturing Holdings (AXL Quick QuoteAXL - Free Report) in the drivetrain systems domain. Dana offers axles, driveshafts, transmissions, sealing, thermal products, motors, inverters, controllers, e-sealing, e-thermal and digital solutions for vehicles and machinery. BorgWarner products include four-wheel-drive and all-wheel-drive transfer cases, as well as automatic transmission and timing chain systems. BorgWarner’s largest customers include Volkswagen and Ford. American Axle & Manufacturing Holdings supplies driveline components and driveline system products to General Motors, Stellantis and Ford, key customers.

Greenland shares have underperformed close competitor Dana but outperformed BorgWarner, and American Axle & Manufacturing Holdings. While shares of Dana and BorgWarner appreciated 49.5% and 5.7%, respectively, American Axle & Manufacturing Holdings shares dropped 27.9% YTD.

GTEC Stock’s Performance

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Greenland stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend.

GTEC Stock Trades Above 50-Day and 200-Day SMAs

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GTEC Rides on Strong Sales of High-Value Products

Greenland’s first-quarter 2025 results suffered from lower volumes of transmission products. Revenues declined 4.6% year over year to $21.68 million. The company’s transmission products are used in 1-ton to 15-ton forklift trucks and sells these transmission products directly to forklift-truck manufacturers. In the first quarter of 2025, Greenland sold an aggregate of 38,734 sets of transmission products to more than 100 forklift manufacturers in China.

Greenland’s focus on selling higher-value and more sophisticated products, such as hydraulic transmission products, is expected to expand gross margin. In first-quarter 2025, gross margin expanded 580 basis points (bps) to 30.7%. Moreover, first-quarter 2025 income from operations surged 149.6% year over year to $4.81 million due to lower advertising and marketing expenses, shipping fees, general and administrative expenses, and research and development expenses. Higher gross margin and operating margin helped Greenland report earnings of 29 cents per share, up 61.1% year over year.

For 2025, the Zacks Consensus Estimate for GTEC’s earnings has been steady at 48 cents per share over the past month. The company reported earnings of 90 cents per share in 2024.

Expansion Into Electric Vehicles Aids GTEC’s Prospect

In December 2020, Greenland launched HEVI, which focuses on the production and sale of electric industrial heavy equipment. 

HEVI’s electric industrial heavy equipment products currently include GEF-series electric forklifts, a series of lithium-powered forklifts with three models ranging in size from 1.8 tons to 3.5 tons, GEL-1800, a 1.8-ton rated load lithium-powered electric wheeled front loader,
GEX-8000, an all-electric 8.0 ton rated load lithium-powered wheeled excavator, and GEL-5000, an all-electric 5.0 ton rated load lithium wheeled front loader.

In August 2024, HEVI launched its H55L all-electric wheeled front-end loader, which can lift up to six tons in indoor and outdoor applications. The H65L all-electric wheeled front-end loader is the largest lithium battery-powered electric wheel loader commercially available in North America.

Moreover, HEVI introduced mobile DC battery chargers to support a growing market of EV applications requiring DC charging capabilities in the North America market. 

Expanding production capacity has been driving Greenland’s prospects. In August 2022, HEVI launched a 54,000-square-foot industrial electric vehicle assembly site in Baltimore, Maryland. In July 2024, HEVI announced a partnership with Lonking Holdings Limited to develop and distribute heavy electric machinery and related technology specialized for the U.S. market.

Customer Concentration Concerns for GTEC

Investors should note that Greenland faces significant customer concentration, with its Chinese subsidiaries’ five largest customers accounting for 41.27% of revenues. In first-quarter 2025, Greenland’s single largest customer, Hangcha Group, accounted for 17.77% while the second largest, Longgong Forklift Truck, accounted for 9.48% of total revenues. Loss of any of these customers can hurt GTEC’s volume.

Here’s Why GTEC Stock is a Buy

Greenland shares are undervalued, as suggested by the Value Score of A. 

In terms of Price/Book, Greenland is trading at 0.48X compared with the industry’s 11.03X, Dana’s 1.74X, BorgWarner’s 1.25X and American Axle & Manufacturing Holdings’ 0.83X, suggesting a cheap valuation.

GTEC Valuation

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Despite stiff competition and customer concentration risks, Greenland benefits from a diversified portfolio. Greenland currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.