CN Energy Group Looks Solid Amid Global Industry Shifts

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. 


  • CN Energy Group listed its shares on Nasdaq on February 5, 2021.
  • 97% of the company's revenue was contributed by activated carbon sales, with positive growth over the past three years.
  • CNEY's wood-based activated carbon products have many application scenarios and splendid quality.
  • Establishing a wider industry chain coverage is a potential growth engine for its future.

On February 5, 2021, CN Energy Group (CNEY), a developing activated carbon manufacturer, was listed on Nasdaq with an opening price of USD 4 per share. The company issued 5 million ordinary shares, raising USD 20 million. The stock closed up 43.5% at USD 5.74 by the end of its first trading day. The company said that it would use 80% of the IPO proceeds to build a manufacturing plant in Manzhouli while the rest will be used for expansive production research. Network 1 Financial Securities took the underwriter's role during the offering.

Despite CNEY's solid market position and nifty business model, the investors' attention to the company has been so far limited. In this article, we will examine its performance to explore an additional investment opportunity.

Activated Carbon

Background

Founded in 2018, the company has carried out the production of wood-based activated carbon in China through its subsidiary, Khingan Forasen Energy. Its activated carbon is mainly used in pharmaceutical, industrial manufacturing, water purification, environmental protection, and food beverage production. Dr. Kangbin Zheng, the CEO of the company, has worked for nearly 30 years at global financial institutions such as the World Bank and the Asian Development Bank. He has designed and led more than ten renewable energy projects, including those in the fields of hydropower, wind power, solar energy, biomass energy, geothermal energy, and garbage power generation. Also, he is one of the directors of the World Bank Agricultural Department with a rather strong business and technical background.

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