About to launch an electric car model under 150 million VND, an auto company's stock "surged"

ANTD.VN - TMT shares of TMT Automobile Joint Stock Company increased to the ceiling price for 3 consecutive sessions, reaching the closing price of 8,600 VND/share on December 27 after the news that this car company will launch low-cost electric car models on the market.

Previously, TMT shares had continuously fallen from the price range of over VND15,000/share at the beginning of the year to around VND7,000/share over the past several months.

The reason is that the business results of this enterprise are not very positive when the enterprise continuously recorded losses in the second and third quarters of this year with losses of more than 100 billion VND and nearly 93 billion VND respectively. Accumulated to the end of the third quarter, TMT had a loss after tax of more than 122 billion VND while at the end of last year it still had a profit of 58 billion VND.

TMT shares surged immediately after the automaker announced that it and its joint venture SGMW (SAIC, General Motors and Wuling) plan to sell three electric vehicle models, including Baojun E100, Baojun Yep 2023 and Baojun Yep Plus, in the Vietnamese market. All three models have the advantage of being able to charge at home and have a 220V outlet.

In particular, with the Baojun E100 model, TMT Motors is negotiating with partner SGMW to launch a commercial version of the product that can gradually replace two-wheeled motorbikes with an expected price including battery of less than 150 million VND.

Electric car model priced under 150 million VND is expected to be available in Vietnam soon.

Previously, this company attracted attention when entering the electric vehicle market by manufacturing, assembling and distributing two electric vehicle models, Wuling Hongguang MiniEV and Wuling Bingo EV, in the Vietnamese market. It is known that Wuling Mini EV is a famous small electric vehicle model of China, achieving the title of the world's best-selling small electric car for 4 consecutive years, from 2020 to the end of 2023.

Currently, this enterprise also has an electric vehicle assembly plant in Van Lam district, Hung Yen province. The first phase of the electric vehicle assembly line with a capacity of 30,000 vehicles/year in Hung Yen has been completed. Phase 2 is expected to increase the capacity to 60,000 vehicles/year.

However, in 2023, TMT only sold 591 Wuling HongGuang MiniEV electric vehicles to the market, equal to 11% of the previously set sales plan of 5,525 units. With this result, TMT Motors recorded a 13% decrease in revenue to VND 2,634 billion and a 95% decrease in profit to VND 2.4 billion.

In the first 9 months of this year, TMT Motors continued to record a 15.1% decrease in revenue compared to the same period to VND1,675 billion and a net loss of VND191.7 billion.

According to the explanatory document, the company said it accepted the loss in business results in 2024 to ensure good preparation for the new business cycle and towards stable development and sustainable growth for future years, specifically 2025 and the following years.

Source: https://www.anninhthudo.vn/sap-tung-mau-xe-dien-duoi-150-trieu-dong-co-phieu-mot-doanh-nghiep-o-to-noi-song-post599664.antd