Cleantech Solutions International Inc (NASDAQ:CLNT) Explodes Up The Charts

We need to revisit again Cleantech Solutions International Inc (NASDAQ:CLNT), the manufacturer and seller of textile dyeing and finishing machines. The company released a new exclusivity agreement with Inspirit Studio and the market reacted by pushing the share price up. Thus, our readers will welcome this new update.Have a look at the market reaction first and form your own opinion. The share price went from trading close to $3.36 to hit the $7 share price level in only one day. For those who need a calculator, that is a more than 100% return in only one day. Two month chart for CLNTWhat did we say in our previous reports?Our readers will remember well why we highlighted the company in our previous coverage. We believed that the company was being undervalued by the market, because the company operates in China. Additionally, we said that this could be an opportunity. Also, the company was releasing good developments, such as the hiring of a new COO, or stock agreements with private investors.Recent DevelopmentsThe following are, what we believe, the most meaningful announcements released recently.On September 7, 2017, the company noted its exclusive discussions with ECoin Development Limited regarding the development of a cryptocurrency system to support the development of a sharing economy ecosystem based on blockchain solutions.We believe that the most interesting assessment was made by Parkson Yip, COO of Cleantech. He explained how sharing economies will be able to profit from blockchain solutions:

"By implementing blockchain technology into the sharing economy, there will no longer be a need for a central authority. The distributed ledger technology can provide smart contracts, digital identities linked to publicly-viewable user reputation systems, and digital currency payments, all of which alleviate the need for a central authority. The sharing community regulates the community." Source

Additionally, it was said that the company had established a new business division to focus on the development of sharing economy platforms and the related rental businesses. We appreciate the initiative. We believe that it does not matter whether the market celebrated the announcement or not. New initiatives may return revenues to the company in the long run, which finally drives the share price up.We could read that Cleantech was touching every door. It had been exploring M&A transactions to bring to market more user-friendly platforms and convenient channels that allow people to rent what they need and make their lives easier. The agreement with ECoin seems to be the result of these activities.In another press release, it was said that the exclusivity period will be six months commencing from June 11, 2017. We will need to be alert, as an agreement could be released soon. It could make the share price jump.On September 25, 2017, it was announced that EC Power, a subsidiary of CLNT, started providing mobile power charger rental services through major convenience store networks in Hong Kong and Macau. Furthermore, it was said that the company will be providing these services at over 700 store locations in Hong Kong, and over 40 locations in Macau.Additionally, it was explained that the company plans to extend these services into other regions in the years to come. We appreciate the idea, not only because it seems an activity that people need, but because the market seems to be growing at a high pace that will positively affect the company. According to iimediaResearch charger, the market in China is expected to reach to total 104 million users in 2017 and grow to 246 million by 2019.On October 9, 2017, the company noted another exclusivity agreement, this time signed with Inspirit Studio. Under the agreement, a subsidiary of CLNT, Sharing Economy Investment Limited, could buy not less than 51% of Inspirit Studio. As the share price increased quite a bit as a result of this announcement, we will assess the Inspirit Studio.What's the business model of Inspirit Studio?The company is the owner of a mobile platform sharing economy mobile platform called Anyway. It is explained in the following way by Inspirit Studio:

"Anyway connects senders and freelance couriers who are willing to deliver parcels/letters for senders in return for income. It is a low cost and fast delivery solution which allows freelance couriers to earn income by sharing their journeys." Source

It does not seem to be a small company. In the press release, we could read that this app has helped sign up over 2,000 freelance couriers, with over successful 6,000 transactions. We believe that they were these numbers, which made the market push up the share price.Additionally, the following growth expectation should have helped a bit. iimediaResearch noted that this market has grown from 124 million in 2014 to 231 million in 2016 and the experts expect it to grow to 353 million by 2018.ConclusionCurrently trading with a market cap of $9 million, CLNT is an exciting story among small caps. With $2 million in pure cash, $29 million in Property Plant and Equipment and only $5 million in total liabilities, the company continues to show strong fundamentals as evidenced in the last quarterly report. Additionally, $37.29 is the book value per share of the company, while the share price is less than $6. Hence, the CLNT still seems quite undervalued. To sum up, even after the share price jumps, we believe that the share price has further room to run.Be sure to check out our coverage on CLNT!We will be updating our subscribers as soon as we know more. For the latest updates on CLNT, sign up below!Image courtesy of Google App Engine via FlickrDisclosure: We have no position in CLNT and have not been compensated for this article.