TMT shares continuously "drop sharply"
TMT shares of TMT Motors Corporation (TMT Motors) suddenly hit the floor after reaching the highest price in the past 3 months. The "no buyers" situation pushed TMT shares down to only 13,650 VND/share in the session on June 11, 2024. By the session on June 12, 2024, TMT had recovered and reached 14,200 VND/share.
In the past year, TMT stocks have had a series of "high and low" price drops, taking investors from one surprise to another.
TMT Motors' Wuling electric vehicles sold only 11% of the 2023 plan (Photo TL)
In November 2022, TMT hit bottom at just over VND 8,000/share but then continuously increased in price. In just 6 months, this stock peaked at VND 24,800/share in June 2023.
Immediately after that, continuous declines occurred, pushing the stock price to the lowest in the past 18 months, reaching only nearly 10,000 VND/share in May 2024. Since then, in just 2 weeks, TMT's price has increased by nearly 40%.
TMT's price increases all took place in a context where the company did not have many bright spots in its business operations, if not to say it was extremely miserable.
Profits plummet in 2023, stocks still hit peak
TMT shares peaked in mid-2023, when the company recorded its worst business results.
Revenue in 2023 reached VND2,634 billion, down 13% year-on-year. Gross profit decreased by 36.6% to only VND170 billion. The company recorded a net loss from business operations of nearly VND30 billion.
With this result, TMT reported a profit of only 2.4 billion VND in 2023, equivalent to a decrease of 95% compared to the same period.
Entering 2024, TMT's Q1 business results are still not any better. Revenue reached 516 billion VND, profit after tax was only 269 million VND, down 86% compared to the same period.
Wuling electric car sales only reached 11% of plan
TMT Motors, formerly known as the Transportation Equipment and Materials Trading and Manufacturing Company, operates mainly in the field of manufacturing, assembling and trading automobiles and spare parts. This unit is currently participating in the electric vehicle market, assembling and distributing Wuling Hongguang MiniEV electric vehicles in the Vietnamese market.
This is a small electric car model, advertised as suitable for urban travel with a relatively low price compared to other car products on the market today. Although advertised with many advantages, it seems that Wuling's sales are not as expected.
Specifically, in 2023, TMT set a target of selling 12,283 vehicles but only completed 48.4% of the target, equivalent to selling 5,945 vehicles. Notably, electric vehicles only sold 591 vehicles, equivalent to less than 11% of the original plan. With the above results, the company's sales revenue only reached 55% of the set target.
Faced with the sluggish sales of Wuling electric vehicles, TMT Motors set a target of selling only 1,016 units in 2024. Along with that, the net revenue target is only 2,645 billion VND, profit after tax reaches 38.5 billion VND.
Source: https://www.congluan.vn/xe-dien-wuling-e-am-tmt-motors-chi-dat-11-ke-hoach-co-phieu-van-boc-dau-giam-sau-post299021.html
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