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Companies: Apollo Future Mobilioty Group Limited


 

 

HONG KONG LISTING (860) CLICK HERE

 

COMPANY PROFILE

Apollo Future Mobility Group Limited (ex-WE Solutions Limited) is a Hong Kong-based investment holding company principally engaged in the trading of jewelry products and watches. The Domestic segment is involved in the trading of jewelry products and watches for the retail and wholesale business in the Asia. The Security Investment segment is involved in the trading of listed securities. The Money Lending segment is involved in the provision of loan finance. The Property Investment segment is involved in the investment properties to receive rental income. The Mining segment is involved in the mining, exploration and sale of gold resources. The Electric Vehicle segment is involved in the providing electric vehicle business to business (B2B) solutions, including design, development and assembling of electric vehicles and related auto parts, and providing electric vehicle charging solutions.

 

Issued Shares 7,170,198,562 (as at 31 Oct 2019)
Industry Consumer Discretionary - Textiles & Clothing - Jewellery & Timepieces (HSIC)
Listing Date 3 Sep 2002
Financial Year Ends 30 Sep 2018
Chairman Ho King Fung Eric
Principal Office Units 301 and 302, Third Floor
Building 22E, Phase Three
Hong Kong Science Park
Pak Shek Kok, NT, HK
Place of Incorporation Cayman Islands
Listing Category Primary Listing

 

3-23-20 Greenridge Global Equity Research
Issues Update

WE Solutions, Ltd is Now Apollo Future Mobility Group

Read Complete Report

 1-13-20 Greenridge Global Equity Research
Issues Update

WE Solutions, Ltd is Now Apollo Future Mobility Group

Read Complete Report

 11-4-19 Greenridge Global Equity Research
Issues Coverage Initiation

WE Solutions, Ltd

WE Enters Commercial EV Production Via JV

 

Earlier this week, WE announced it formed a JV to design produce, sell and service New Energy Vehicles in China.  The JV is comprised of Jiangsu Jemmell New Energy Automobile Company Limited (a related company of Jiangsu Jinpeng), GLM and WE.  Jemmell (57% equity) will contribute RMB100,000,000 in cash and RMB300,000,000 in assets that include automobile production facilities and access to Jinpeng’s supply chain and distribution network.  Jinpeng currently markets a variety of lower-end electric vehicles, like scooters and rickshaws.  GLM will contribute RMB200,000,000 of technology, engineering and design, and the GLM brand name for a 29% interest.  WE will contribute RMB65,000,000 in cash and RMB35,000,000 in value of its international assets (Apollo and Ideenion services) for the remaining 14%.  This deal gives WE an effective ownership interest in the JV of roughly 40%, while also showing the value held within GLM’s engineering and design work.  The JV expects to begin commercial production in 2021. 

 

This deal is significant in several regards.  First, it validates the business model management has moved WE towards, from developing and marketing its own vehicles to providing outsourced services and taking, in some cases, taking equity in lieu of full upfront fees.  Second, it assigns value to GLM for how it values GLM’s designs and the GLM brand name, which could become a more valuable asset if these vehicles sell well.  Finally, the deal requires a relatively small cash outlay for a business that could rapidly become a large contributor to Net Profit in the near future. 

 

Model Update.  This deal more or less validates the Company’s business plan and the early stages of growth in our model.  As a result, we have made no changes to our model. 

 

Maintaining Rating & Target.  After a validating JV announcement, we are reiterating our Buy rating and HK$0.75 target price on WE Solutions Limited.  Our target price is based on a P/E multiple of 17 times our fiscal 2021 Diluted EPS estimate of HK 5.22 cents, discounted one year at 15%.  We again note that our model assumes Ideenion’s consideration shares will be issued at HK$0.52 and not a likely higher price which would result in less shares being issued.

 

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