The war in Iran and associated concerns around fuel prices have translated into a solid sales increase for Vmoto Ltd (ASX: VMT), which has announced a significant 127% increase in sales in the first quarter.
The electric mobility solutions provider said in a statement to the ASX that sales of 6693 units were up 127% in the first quarter compared with the same quarter last year, and up 46% on the immediate preceding quarter.
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E-mobility looking attractive
The company said it was well-placed to benefit from consumers looking for electric mobility solutions.
With fuel price surges attributed to geopolitical tensions and oil supply concerns, electric vehicles (EV) are increasingly viewed as a hedge against fuel price volatility. The anxiety around the supply of fuel and fuel prices is accelerating the adoption of EV, which Vmoto is well positioned to benefit from and is evidenced by recent increased interest from new customers to purchase Vmoto's EV products. Electricity prices remain more stable due to regulation and long-term energy strategies, offering predictable running costs compared to the rapid fluctuations of oil. This validates Vmoto's strategy to act as a complete e mobility solutions provider, to build an EV ecosystem surrounding its strategic partners, customers and riders involving Vmoto's EV products (vehicle sales, rent and financing), Energy-as-a-Service (using Vmoto's fast charging and battery swapping stations) and Data-as-a-Service (through Vmoto's smart IoT, fleet management system and apps).
Vmoto said it had started deploying its battery swapping stations and fast charging stations into key markets including Brazil, Spain, the United Kingdom and others.
The company said it expected to expand into further countries in the future.
The company added:
These strategies and deployment will further enhance the value of the Company as an integrated e-mobility solutions provider as it will solve some of the distance anxiety of EV users, significantly shorten the downtime to recharge for delivery fleets and encourage the use of electric vehicles including Vmoto's products.
Building on the company's sales figures for the first quarter, Vmoto said it had firm orders for 7133 units at the end of March, which would be delivered over the next two quarters.
Positive trend
The company added:
With the recent significant interests from new customers and expansion into new markets, the Company remains positive about the longer-term outlook for the electric motorcycle/moped markets in Europe, Middle East, South America and South-East Asia. The Company is also piloting an energy-as-a-service project with its dealers and customers and expects to explore additional revenue streams for the Company.
Vmoto had cash on hand of $31.7 million at the end of March and generated positive operating cash flow during the first quarter.
Vmoto shares were 13.6% higher in early trade to a new 12-month high of 12.5 cents.
The company is valued at $44 million.
