The Vmoto Ltd (ASX: VMT) share price has rocketed to a 9-month high today. This comes after the company announced profit guidance for the 2021 financial year.
At market close, the electric-powered scooter manufacturer's shares were up 9.52% to 46 cents apiece. That's after hitting an intraday high of 49 cents this morning.
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Vmoto continues to accelerate sales growth at a rapid pace
The Vmoto share price pushed higher after investors digested the company's latest announcement.
According to its release, Vmoto advised it has sped up its international strategy, delivering record sales units to key markets.
In total, more than 30,000 units were sold in FY21, representing a significant 27.4% increase on the prior corresponding period.
As a result, the company expects to achieve FY21 net profit after tax (NPAT) between $7.5 million and $7.8 million. Notably, this will be the largest net profit ever recorded in Vmoto's history. To put this into perspective, NPAT stood at $3.7 million for the 2020 financial year.
The company highlighted that it had completed a number of operational and commercial milestones in FY21. This included generating positive operational cash flows leading to a strong cash positive with no bank debt.
Furthermore, Vmoto's presence also expanded as more international B2C (business to consumer) distributors were secured, bringing the total to 58 across 62 countries. Its B2B (business to business) operations also grew through the use of increased popularity in delivery and ride-sharing services.
Vmoto managing director, Charles Chen commented:
I am delighted to announce we will deliver a significant increase in NPAT for this financial year when compared to 2020.
We remain confident the underlying fundamentals of the business will continue to deliver strong growth throughout key international markets. We are also extremely excited to have launched the new Vmoto premium brand and products having worked alongside a number of top industrial design partners in Europe to bring a wider range of products to the international markets.
Quick take on Vmoto
Vmoto Limited is a leading global scooter manufacturer and distribution group specialising in electric powered two-wheel vehicles. Vmoto's electric-powered two-wheel vehicle products have chic European design and German engineering.
Last year, Vmoto undertook an extensive strategic review of operations with the intention of simplifying the company's structure. This allowed management to focus on international sales and marketing of electric two-wheel vehicle products.
Vmoto share price summary
It's been a sound year for Vmoto shareholders, having gained around 15% in the last 12 months of trading. However, the company's shares have started 2022 on a positive note and are up more than 8% to date.
In the last month, the Vmoto share price regained support and climbed by more than 17%, despite no new updates from the company.
Based on today's price, Vmoto has a market capitalisation of around $130 million and a price-to-earnings (P/E) ratio of 22.14.
