Q& A

 

Q: Venturing into this area (technology-wise) is not new and has been

 

taken up by many other companies. What differentiates you from the

 

other companies?

 

A: We have access to the government with the connections of Prince

 

Hakeem, which is essential as we need the corporation and support of the

 

government in order to kick start any projects. Additionally, we connections

 

with automotive companies and are also the first mover advantage and a

 

market leader involving in setting the standards for electric vehicle charging.

 

Q: What differentiates you from ChargeMaster?

 

A. What distinguishes us would be that firstly, we have a patent on the locking

 

mechanism and secondly, our software. For the locking mechanism, it is

 

actually a ledge with RFID technology which provides extra safety.

 

Additionally, no electric current can go through unless the cord is properly

 

plugged in (such a safety feature is essential to eliminate the risk of accidental

 

electrocution). Moreover, we are definitely price competitive.

 

About Us

 

• Located in: Elektromotive Ltd The Sussex Innovation Centre, Science

 

Park Square, Falmer, Brighton, East Sussex, BN1 9SB, UK

 

• Surf: info@elektromotive.com

 

Contact: Tel: + 44 (0)1273 704775

 

Fax: + 44 (0)1273 704499

 

Source: Company

 

Financial analysis

 

FYE Mar 2008 2009 2010 2011

 

Revenue (SGD m) 5.5 5.5 5.3 5.5

 

EBITDA (SGD m) (5.0) 1.7 (0.4) (2.1)

 

EBITDA margins (%) -91.2% 29.8% -8.3% -37.4%

 

Pretax profit (SGD m) (54.3) (3.4) 5.6 (5.4)

 

Net profit (SGD m) (42.7) (3.1) 5.6 (5.4)

 

EPS (SGD cents) (5.1) (0.4) 0.6 (0.5)

 

EPS growth (%) n.m. n.m. n.m. n.m.

 

P/E (x) n.m n.m 1.0 n.m

 

FD EPS (SGD cents)

 

(5.1)

 

(0.4) 0.6 (0.5)

 

FD P/E (x) n.m n.m 1.0 n.m

 

Gross DPS (SGD cents)

 

-

 

- - -

 

Dividend yield (%) n.m n.m n.m n.m

 

PBV (x)

 

1.5

 

33.1 2.1 6.1

 

ROE (%)

 

-

 

306.0% -210.0% 393.6% -274.2%

 

Net gearing (%) 106.0% 87.2% - -

 

Net cash per share (SGD cents) - - 0.1 0.1

 

Source: Bloomberg

 

Key Takeaways

 

• Elektromotive, a Company providing electric vehicle charging stations,

 

Food & Beverage (F& B) and media services kicked off our Corporate

 

Focus Series lunch talk yesterday. The Company is in the midst of phasing

 

out the (F& B) division, with one lease left before complete termination of

 

F& B. There will be minimal losses involved in 2HFY12 as Elektromotive

 

managed to terminate the leases early. Publishing division remains for

 

media purposes such as media coverage. 2H12 results are unlikely to

 

excite as the company transitions to focus on its electric vehicles (EV)-

 

related business.

 

• Look forward to FY13 results which will show the potential of its EV

 

charging business. Four key catalysts that ignite interest in this stock are:

 

1) any announcement of a tie-up with automotive makers, 2)

 

announcement with back-end players in the EV charging business 3)

 

announcement with power supply companies that provide the electricity

 

necessary for charging such vehicles, and 4) successful IPO exercise by

 

its competitor, ChargeMaster, in London.

 

• Revenue growth from the EV-related business in March 2013 could come

 

in significantly more than the current S$0.7m reported in 1H12. Given the

 

low base, multiples of this number should not surprise.

 

• Placing full focus on Elektromotive. Currently, the Company owns a 51%

 

stake in Elektromotive. The Company could raise its stake in Elektromotive

 

eventually.

 

• Small competitors are aplenty as the industry is still fragmented and in

 

the early stage of growth. In the UK, ChargeMaster (established since

 

2008) is often quoted as a competitor. All eyes are on ChargeMaster now

 

as the company is aiming for an IPO this year with valuations touted at

 

market cap of between 75m to 100m British pounds. Although privately

 

held, industry sources are telling us that the company is still loss making.

 

• Market Leader in the European market and enjoys first mover advantage.

 

In distinguishing itself from competitors in the UK, Elektromotive leverages

 

on its patent on software and locking mechanism. In addition, an accident

 

free charging track record stands in the Company’s favour as safety is

 

paramount when governments deliberate on which partner to work with.

 

• 2012 – Year of the electric vehicle. 2012 could well be the year of the

 

electric vehicle as major car makers start to rollout new and more

 

importantly aesthetically appealing electric vehicle models. One of the

 

impediments in purchasing an electric vehicle was that the current models

 

were in a word, ugly.

 

What the company does?

 

• Based on the South Coast of the UK, in the City of Brighton and Hove, the

 

company specialises in the manufacture and installation of charging

 

infrastructure for electric cars and other electric vehicles.

 

• The company's primary product is the Eleltrobay Charging Point, Home

 

Charger and EBConnect network application to manage infrastructure and

 

user schemes.

 

• The company has three distinct business units—OEM, Infrastructure and

 

Elektronet.

 

• Partnerships with major corporations including EDF Energy and Mercedes

 

Benz to supply charging posts and data services.

 

• Partnerships with Mercedes-Benz and Smart, where both firms have been

 

preparing for the widespread uptake of EVs in the UK by beginning the

 

installation of recharging points across their dealer networks.

 

• Currently, the company has over 1,000 fully installed electric vehicle

 

charge points across the UK and has exported to more than 20 countries

 

worldwide.

 

Key Takeaways

•

Food & Beverage (F& B) and media services kicked off our Corporate

Focus Series lunch talk yesterday. The Company is in the midst of phasing

out the (F& B) division, with one lease left before complete termination of

F& B. There will be minimal losses involved in 2HFY12 as Elektromotive

managed to terminate the leases early. Publishing division remains for

media purposes such as media coverage. 2H12 results are unlikely to

excite as the company transitions to focus on its electric vehicles (EV)-

related business.Elektromotive, a Company providing electric vehicle charging stations,

•

charging business. Four key catalysts that ignite interest in this stock are:

1) any announcement of a tie-up with automotive makers, 2)

announcement with back-end players in the EV charging business 3)

announcement with power supply companies that provide the electricity

necessary for charging such vehicles, and 4) successful IPO exercise by

its competitor, ChargeMaster, in London.Look forward to FY13 results which will show the potential of its EV

•

in significantly more than the current S$0.7m reported in 1H12. Given the

low base, multiples of this number should not surprise.Revenue growth from the EV-related business in March 2013 could come

•

stake in Elektromotive. The Company could raise its stake in Elektromotive

eventually.Placing full focus on Elektromotive. Currently, the Company owns a 51%

•

the early stage of growth. In the UK, ChargeMaster (established since

2008) is often quoted as a competitor. All eyes are on ChargeMaster now

as the company is aiming for an IPO this year with valuations touted at

market cap of between 75m to 100m British pounds. Although privately

held, industry sources are telling us that the company is still loss making.Small competitors are aplenty as the industry is still fragmented and in

•

In distinguishing itself from competitors in the UK, Elektromotive leverages

on its patent on software and locking mechanism. In addition, an accident

free charging track record stands in the Company’s favour as safety is

paramount when governments deliberate on which partner to work with.Market Leader in the European market and enjoys first mover advantage.

•

electric vehicle as major car makers start to rollout new and more

importantly aesthetically appealing electric vehicle models. One of the

impediments in purchasing an electric vehicle was that the current models

were in a word, ugly.2012 – Year of the electric vehicle. 2012 could well be the year of the

What the company does?

•

company specialises in the manufacture and installation of charging

infrastructure for electric cars and other electric vehicles.Based on the South Coast of the UK, in the City of Brighton and Hove, the

•

Charger and EBConnect network application to manage infrastructure and

user schemes.The company's primary product is the Eleltrobay Charging Point, Home

•

Elektronet.The company has three distinct business units—OEM, Infrastructure and

•

Benz to supply charging posts and data services.Partnerships with major corporations including EDF Energy and Mercedes

•

preparing for the widespread uptake of EVs in the UK by beginning the

installation of recharging points across their dealer networks.Partnerships with Mercedes-Benz and Smart, where both firms have been

•

charge points across the UK and has exported to more than 20 countries

worldwide.

Q:

taken up by many other companies. What differentiates you from the

other companies?Venturing into this area (technology-wise) is not new and has been

A: We have access to the government with the connections of Prince

Hakeem, which is essential as we need the corporation and support of the

government in order to kick start any projects. Additionally, we connections

with automotive companies and are also the first mover advantage and a

market leader involving in setting the standards for electric vehicle charging.

Q: What differentiates you from ChargeMaster?

A. What distinguishes us would be that firstly, we have a patent on the locking

mechanism and secondly, our software. For the locking mechanism, it is

actually a ledge with RFID technology which provides extra safety.

Additionally, no electric current can go through unless the cord is properly

plugged in (such a safety feature is essential to eliminate the risk of accidental

electrocution). Moreover, we are definitely price competitive.

About Us

•

Park Square, Falmer, Brighton, East Sussex, BN1 9SB, UKLocated in: Elektromotive Ltd The Sussex Innovation Centre, Science

• Surf: info@elektromotive.com

Contact:

Fax: + 44 (0)1273 704499Tel: + 44 (0)1273 704775

Source: Company

Financial analysis

FYE Mar 2008 2009 2010 2011

Revenue (SGD m) 5.5 5.5 5.3 5.5

EBITDA (SGD m) (5.0) 1.7 (0.4) (2.1)

EBITDA margins (%) -91.2% 29.8% -8.3% -37.4%

Pretax profit (SGD m) (54.3) (3.4) 5.6 (5.4)

Net profit (SGD m) (42.7) (3.1) 5.6 (5.4)

EPS (SGD cents) (5.1) (0.4) 0.6 (0.5)

EPS growth (%) n.m. n.m. n.m. n.m.

P/E (x) n.m n.m 1.0 n.m

FD EPS (SGD cents)

(5.1)

(0.4) 0.6 (0.5)

FD P/E (x) n.m n.m 1.0 n.m

Gross DPS (SGD cents)

-

- - -

Dividend yield (%) n.m n.m n.m n.m

PBV (x)

1.5

33.1 2.1 6.1

ROE (%)

-

306.0% -210.0% 393.6% -274.2%

Net gearing (%) 106.0% 87.2% - -

Net cash per share (SGD cents) - - 0.1 0.1

Source: BloombergCurrently, the company has over 1,000 fully installed electric vehicle