Shares of electric vehicle distributor Wuling continuously increased to the ceiling

From December 25, 2024 until now, the stock code of TMT Automobile Joint Stock Company (TMT Motors) has continuously reached the ceiling price. From 7,030 VND per unit, this stock jumped to 12,750 VND at the closing session this morning, an accumulation of more than 81%.

Liquidity also increased significantly, often 2-3 times the yearly average. Particularly on December 27, 2024, the total trading volume reached 282,100 units. Unlike some stocks that have increased sharply recently, all of TMT’s transactions come from the order matching channel, without recording agreements.

In a recent document sent to the Ho Chi Minh City Stock Exchange (HoSE), to explain according to regulations, Chairman of the Board of Directors Bui Van Hieu said the stock price increased due to market demand. This is beyond the company’s control. Their business activities are still as planned and taking place normally.

TMT Motors is a partner of the General Motors – SAIC – Wuling joint venture to produce, assemble and distribute Wuling Mini EV mini electric cars in Vietnam. Launched at the end of June 2023, this car line has two versions running 120 km and 170 km. By July 2024, the company will reduce the price of two car models to 197 million and 231 million VND, respectively, to increase sales.

The management board said that in the past year, the company has released inventory and restructured all products from production to consumption. In early December, TMT agreed with foreign partners on new commercial and electric vehicle models to put into production, assembly and sale in Vietnam from the first quarter of this year. In particular, commercial vehicles include 18 new models from 500 kg to 40 tons, electric vehicles have 7 new models including 2-seat electric vehicles to replace motorbikes.

Recently, the company’s business situation has been less positive. Accumulated for 9 months, this company’s profit after tax is negative by more than 191 billion VND. Previously, in the semi-annual review report, the audit unit also said that there were material uncertainties that could lead to doubts about TMT’s ability to continue operating.

Mr. Bui Van Hieu said that last year they focused all resources to reduce prices, releasing all goods in stock from many years ago, leading to a huge loss they have never encountered.

However, this year, TMT Motors plans to sell up to 8,065 cars, including more than 3,400 electric cars. They aim for a total revenue of more than 4,165 billion VND and pre-tax profit of more than 297 billion VND. The set revenue target was 58% higher than the previous year, but profits increased 99 times and reached a record level in operating history.