Shares of Maxwell rise on Chinese ultracapacitor deals

San Diego-based Maxwell Technologies (Nasdaq: MXWL) announced three deals today with Chinese transit bus producers for its ultracapacitor technology.

The announcement caused shares to rise 3.75 percent to close at $9.13 today, and prompted analysts at Thomas Weisel Partners to increase the 12-to-18 month price target from $8 to $11.

"Maxwell's sales efforts into the large Chinese heavy duty vehicle market are paying off, with the number of hybrid buses featuring its ultracapacitors set to increase from 150 to 1,000 by 2009 year-end," wrote Thomas Weisel analyst Dilip Warrier.

Maxwell said it signed $13.5 million in purchase orders from three Chinese transit bus producers, but didn't name the firms. Maxwell's 48-volt BOOSTCAP ultracapacitor modules are used to support regenerative braking and power assist systems in diesel-hybrid drivetrains. The devices offer a 10-year lifespan.

"China's leading bus OEMs have developed an array of electric and hybrid drive systems for cleaner, more efficient, transit buses, trolleys and other commercial vehicles," CEO David Schramm said in a news release. "Working with a number of them has given Maxwell a better understanding of the requirements of the heavy vehicle industry and enabled us to expand our presence in the dynamic and rapidly growing Chinese market."

Last year, Maxwell said it delivered 720 ultracapacitors to Golden Dragon Bus, which is producing diesel-electric hybrid buses for the Hangzhou, China, Public Transport Group (see Golden Dragon Bus to use Maxwell ultracapacitors).