Vmoto Share Discussion Threads

[lanzarote666] 08/12/2014 13:15

Not much reaction here to a positive trading update. Under the radar?

Monthly performance above expectations, growing and further growth for 2015...

[pj 1] 04/12/2014 11:36

Im out! Were fully funded

NON exec quit, still not been replaced

Lots potential, too much risk currently

[envirovision] 04/12/2014 11:07

Whats the cash situation here ?

[pj 1] 04/12/2014 10:59

Has anyone been in direct contact with the POS?

[pj 1] 28/11/2014 20:53

Yep

Feels like im owning 100% of the Company.........

[jon123] 28/11/2014 20:39

just had a look it works ok although I have been watching I haven't had the balls to buy any lol maybe if it goes back to 1p lol

[pj 1] 28/11/2014 20:11

Beginning to think its time to bail out here, no sentiment, no discussion, no ones heard of it, so I thought I d contact the Company again

Except the web site does not work



Aint looking good is it?

[jungle raver] 31/10/2014 10:55

PJ - I'm still around. I think they'll come good in the end, its just a bit of a waiting game. The way I see it is that we're in nice and early.

[pj 1] 31/10/2014 08:22

Sales units down

Margins up

Sort that out!! No time at mo but will look later :-//
Prob end up posting to myself again lol

[pj 1] 22/9/2014 10:07

Totally unloved presently.

- Vmoto has entered into an acquisition agreement to purchase the business of Nanjing Haiyong Electronic Technology Co, Ltd - an advanced electronic technology company focused on producing controllers, a key component in electric vehicle driving systems

[cheshire man] 05/9/2014 10:24

Ticking up every day :-)

[cheshire man] 03/9/2014 18:49

VMT A decent buy through this afternoon

[huttgl] 29/8/2014 15:09

They expect 40 million to be sold in China in 2015. I assume that is not all electric. If VMT maxed out capacity at their existing facility that would enable them to make 260,000 or so units a year which is just over half a percent of the market.

Is that right ?? If so they would need massive expansion if they were to supply a significant slice of the market. Current growth rates are impressive given where they started but it will take a while at these rates to make any dent on that 40 million unit a year market.

[sandoval] 28/8/2014 13:16

Loss on foriegn currency transactions being larger than the profit
has scared me off but vmoto 1 does look exiting.

[lanzarote666] 28/8/2014 07:56

And a bit of Capex required to scale up the manufacturing in due
course...

But more than enough in this report to see us heading for 3.50p in
the short term. Shares magazine were a fan so perhaps a positive
slant next week.

Look out for Finncap's revised target later in the day...

[saucepan] 28/8/2014 07:47

Yes, there are so many highlights.

Additionally:

* The new design about to be launched, the foldable Vmoto 1, sounds
exciting.

* There is also the mentioned joint venture, which sounds on the
point of formalisation.

The only 'negative' I spotted was the slowing down of store
rollouts - but this was explained/justified, with confirmation that
it should not slow down growth.

[lanzarote666] 28/8/2014 07:43

'The second half of this year is expected to generate substantially
higher revenue and earnings relative to the first half, with the
positive trend on cash flows also expected to continue."

The period saw the Company achieve the dual milestones of
delivering a maiden six month profit and generating two consecutive
quarters of positive operating cash flows.

"Vmoto has also received significant interest from a number of
other electric vehicle distributors and parties. The Company
continues to seek and discuss potential collaborations and joint
venture opportunities, both in China and internationally which
could add value and bottom line growth to the business'

Onward and unpwards

:-)

[saucepan] 28/8/2014 07:27

Very strong Interim Results today; a lot of exciting
developments
in the pipeline; and a positive outlook statement.

Will the market now take notice I wonder?

[huttgl] 18/8/2014 09:47

Shhh! Hold it down Enviro - folks trying to sleep here !

[envirovision] 18/8/2014 09:43

Right im in for a few

[masurenguy] 30/7/2014 10:34

Recent company presentation

[masurenguy] 30/7/2014 10:30

Vmoto Limited (ASX:VMT and London Stock Exchange:VMT) is a leading global scooter manufacturer and distribution group specialising in electric powered two wheel vehicles. Vmoto's electric scooters have chic European design and German engineering.

Vmoto wholly owned its state of the art manufacturing facility in Nanjing, China, which has an estimated production capacity of 500,000 units of scooters per annum. Vmoto also have offices in West Perth, Australia and Bremen, Germany. Vmoto has one of the widest global distribution networks of any electric scooter manufacturer in the world, being represented by more than 28 distributors in 30 countries in the geographic regions of Asia Pacific, Europe, North America, South America and South Africa. The group operates two primary brands: Vmoto and E-Max. The electric scooter market is experiencing high growth and Vmoto is a well positioned brand in this space. The company also supply to a number of customers on an OEM basis.

What is there to like about Vmoto's business?
1. Vmoto is a growing brand selling electric scooters to about 30 countries worldwide.
2. The company owns outright their own 30,000 sqm production facility outside of Shanghai in Nanjing, China.
3. The production facility has the capacity to produce up to 500,000 electric scooters per annum.
4. Current production is less than a quarter of capacity so they have plenty of room to grow.
5. Vmoto turned cash flow positive in the December 2013 quarter.
6. And reported a maiden Net Profit after Tax for the 2013 Financial Year which ended December 2013.
7. The 1st quarter of 2014 was also cash flow positive and the beginning of the year is historically their slowest time of year. So profit and cash flow for the year should increase quarter-on- quarter throughout the year.
8. The company has minimal and manageable net debt of about $1 million as of April 2014.
9. And, electric scooters are a very environmentally friendly mode of transport.

What are the reasons for continued business growth?
1. Vmoto have distribution agreements in place with companies such as Chrysler and another company called PowerEagle to supply up to 150,000 units by 2015.
2. They now have 16 retail stores in China open with plans to open more. The retail stores are where their profit comes from. This draws comparisons with a company such as ARB (selling their own four wheel drive parts with a very successful retail model).
3. Vmoto supply to the main markets for scooters being China, India, Indonesia and Brazil. China is by far the biggest market though.
4. In a lot of Asia, people cannot afford to buy a car but they can afford to buy an electric scooter. Plus scooters are a large form of transport for many people across Asia and developing countries in any case.
5. The company announced yesterday 2nd July that DHL (the leading courier company) is trialing the use of Vmoto's scooters. Supplying to a worldwide company such as DHL would open up a new and large market for the company.

What are the risks facing this business?
1. A more recent risk is a bit of instability within the board. The company is presently searching for an Australian based director. However, the business has its current momentum from the work done on building the business over the past number of years. The need to fill a director role is not going to have a significant impact on the trajectory the business.
2.Another risk I see is that the company falls into the trap of taking on too many distributorships which are good for turnover although may not be good for long term profitability. Long term, I think they will be much better off focusing on developing their brand and selling via their own retail stores. Wih the company growing from eight retail stores to 16 retail stores in the past year, I think management know that the best outcome for the business is to continue to develop the profitable retail brand and business model.
3.The third risk is that current shareholders are diluted with a capital raising at some point. Despite the company now producing positive cash flow, for a business growing this fast, the difficulty is managing cash flow appropriately. I am sure however if a capital raise does occur, it may lead to a temporary setback in the share price for the long term good of the business and long term share price. In saying that, I will be delighted if there is no need to raise capital.

Is it run by able and trustworthy management?
When researching this business, I watched a video by one of the directors Mr Olly Cairns. I was suitably impressed with the way Mr Cairns articulated the work done by the company over the past few years with the development of the manufacturing facility and the current activities being rolled out to grow the business.

Is it trading at a bargain price?
Based on cash flow reported by the company and the momentum of that cash flow and profitability I believe the company is trading at a bargain price. I estimate the company will generate NPAT of between $1 Million and $2 Million in 2014. Based on the lower $1 Million figure, I estimate the company to be valued at 6 cents a share in 2014 (December is year end). And, based on my own estimates of profitability growth, I think the intrinsic value of the business can rise significantly over FY15 and FY16. However, being my own estimates, while my numbers are conservative, they are "not as dialed" as I would like.

Company Code Rank Today's Share Price Margin of Safety 2014 Forecast Valuation 2015 Forecast Valuation 2016 Forecast Valuation
Vmoto Limited VMT Gold 5 4.8 cents 20% 6 cents 10.4 cents 21 cents

Summary
In summary, Vmoto is a great business with an excellent product. Vmoto has a significant pipeline of work from other manufacturers such as Chrysler, a good international distribution network, growing number of retail stores and some exciting opportunities for the future. By my calculations, the company is trading at a good discount to my estimate of intrinsic value with my estimates of that value growing over the foreseeable future.

This article is published by Dean Mico. Disclosure: The Edge Fund owns shares in Vmoto Limited.

The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein

[sandoval] 30/7/2014 10:08

Interesting piece i just found from last month update. Shows at least 3 of us are watching the share