Electric motorbike maker Vmoto Ltd [ASX:VMT] is on the up today.
Shares in the small-cap company are up 13.1% at time of writing — rising strongly after management released a fresh profit guidance this morning. As you can no doubt guess from the share price move, it was pretty positive.
So let’s take a closer look at the details…
Record net profit for 2021
The good news for Vmoto shareholders is that 2021 was a bumper year for the company.
As management made clear this morning, they should be on track to record somewhere between a $7.5 and $7.8 million profit — more than doubling their $3.7 million result from 2020!
This will be the largest net profit achieved by the company in their entire history.
A landmark result, for a landmark year.
On top of this great bottom line result, investors will be pleased with growth in other key metrics. For instance, the number of units sold has swelled dramatically from 23,547 in 2020 to over 30,000 in 2021.
This has no doubt been aided by an increase in Vmoto’s B2C distributors, expanding to a total of 58 partners across 62 different countries. This means more of their bikes are being sold around the world than ever before.
As Managing Director Charles Chen comments:
‘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.’
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What’s next for Vmoto?
With this fantastic result now in the bag, attention will now turn to 2022. No doubt shareholders will be hoping management can capitalise on this strong momentum for an even better year.
Whether or not they will be able to do that, though, only time will tell.
However, they are certainly in a strong position to continue to grow, especially with this new premium brand set to become a key part of their operational expertise.
Plus, with the EV boom still well and truly in full swing, Vmoto needs to make the most of this hot sector while it lasts…
And if you’re looking for other ways to gain exposure to this clean energy boom in the market, then there are plenty of other options. You can check out our latest report on this energy revolution, including some of our favourite stocks taking part in it, right here.
Because whether it’s electric motorbikes, lithium batteries, or hydrogen power — there is a lot of opportunity to be found right now.
Regards,
Ryan Clarkson-Ledward,
For Money Morning
PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here
