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Vmoto Ltd jumps 6.8%: Is it too late to buy this promising tech stock?

Shares of Vmoto Ltd (ASX: VMT) have rallied almost 7% today to be trading at 4.7 cents after the company reported the results for its first quarter operations.

Given that it boasts a market capitalisation of just under $61 million most investors will never have even heard of Vmoto. While that might be the case now, the company could actually thrive in the coming years as China continues to search for a way to rid itself of its pollution problems.

Vmoto describes itself as a global scooter manufacturing and distribution group specialising in green electric powered two-wheel vehicles. These scooters are becoming increasingly popular internationally and particularly in China, where they could ultimately help to reduce the high levels of fumes entering the environment.

In its update today, Vmoto reminded investors that the first quarter is generally the slowest period of the year due to the Chinese New Year festival in February. However, the company still managed to sell 19,462 scooters during the three months, while it recorded strong growth in its higher margin international sales, which accounted for more than 20% of total sales.

Pleasingly, the company confirmed that it is facing a busy few months with production expected to increase over the Northern Hemisphere summer months, while it is also progressing significant new market entry opportunities, including North America, Turkey, Ecuador and United Kingdom.

Should you buy Vmoto? Although the stock isn’t cheap (even at just 4.7 cents), Vmoto has strong growth prospects and could certainly be worth considering for a small position within your portfolio.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned. You can follow Ryan on Twitter @ASXvalueinvest.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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