Narratives are currently in beta
Catalysts
- Are there any products or services that could move sales or earnings meaningfully?
- Entry into the EV market with the Scorpio Electric X1
- Are there any industry tailwinds this stock is benefitting or hindered from?
- Possible supply chain or other logistics related issues
With the weakening of SGD, now might just be the perfect time to look into stocks listed in the Singapore market. While doing so, I noticed that one company has significant exposure to the Electric Vehicle (EV) and has been under the radar for too long.
This company, EuroSports Global Limited (SGX: 5G1), is the specialist in distribution of ultra-luxury and luxury automobiles and the provision of after-sales services. How luxurious, you may ask? Well, super cars such as Lamborghini and Touring Superleggera (2012, Asean region) have been in their distributional portfolio since 2002 (Singapore) and 2018 (Indonesia).
Beyond such luxurious brands, EuroSports had a new wholly-owned subsidiary, Scorpio Electric Pte. Ltd. (SEC) to get involved into the next-generation motorcycle that is fully electric in nature.This is followed by the launch of Scorpio Electric X1 on a global scale - which allows Eurosports to tap into the global EV market.
In their homeground, Singapore, EuroSports also secured a Special Purpose License from Land Transport Authority of Singapore (LTA) for their flagship electric maxi-scooter, which is the X1 model we just mentioned.
In other words, the X1 model is now allowed to be on the roads of Singapore.
Valuation
- Where do you think the business will be in 3, 5 or 10 years time?
- Singapores electrical vehicle market growth is projected at 5.91% from 2025-2029, Eurosports (SGX: 5G1) will be in a positive growth area.
- What do you think revenue and profit margins will be?
- 2025 revenues will be around S$27m, profit margins around 9%
- What do you think the valuation multiple will be in the future?
- ~51
This is the very first step of X1 to conquer the electric maxi-scooter, given the premium specification, design and pricing proposition (USD9,800) in the market. We think X1 will be the significant revenue and growth driver for EuroSports ahead.
To conclude, this is certainly a valuable gem for investors to look at.
How well do narratives help inform your perspective?
