Good to hear you are enjoying the bus and the dog. A lot of welcome in the wag of a dogs tail. I like your thinking.
Lets hope the VMT brand is really well established when the big brands finally make the move into electric with proper commitment.
Positive thinking:
PER : The rise from near death could be super charged by the Price to Growth ratio. Falling profits have driven the PER ratio down to its current single digits. When VMT transitioned from a $918k loss in 2018 to a $1,301k profit in 2019 it traded at a PE ratio of 61.
Revenue: Given all the talk about VMT4 being more about parts and products to circumvent high tariffs than it is about completed unit sales the 3,425 units sold in 1Q24, may not translate into a 54% drop in revenues. Mrs Chen's revelation about revenues in Q1 could in fact mean that the revenue per completed unit is much higher than the $2670 it was in 2023. Seems unbelievable that it could be up 4.8x (16,440 completed unit equivalents) as the headline numbers Mrs Chen quoted indicated.
16,440 completed unit equivalents sold in Q1 is a different picture. It is up: * 2.8X on the 5869 units sold in Q1 21 *2.1 X on the 7998 units sold in Q1 22 * 2.2X on the 7258 units sold in Q1 23.
Profits: A share price of 98c /share at a PER of 61 equals earnings of $0.016 a share. Total of $5.7m Worth noting that * 2.8X 2021 NPAT = $23.8m * 2.1X 2022 NPAT = $17.9 m * 2.2X 2023 NPAT = $16m
I'd say we might just be in with a chance. Maybe not next year unless the world finds itself in a better place.
VMT Price at posting:
14.0¢ Sentiment: None Disclosure: Held
