TMT Motors stock hits ceiling for 7 consecutive sessions on deals signed with foreign partners

TMT Motors Corporation (TMT), a major player in the Vietnamese automotive sector, saw its ticker hit its ceiling price for the seventh consecutive session to VND11,200 ($0.44) per share last Friday, after the firm reached deals with foreign partners.

According to TMT Motors chairman Bui Van Huu, since the beginning of 2024, the company has focused on clearing inventory and restructuring all operations, from production to distribution. It has also collaborated with foreign suppliers to introduce new vehicle models with attractive designs, which are included in the production plan starting from early 2025.

By December 2024, TMT had finalized agreements with international partners on a new lineup of commercial and electric vehicle (EV) models, which will be manufactured and assembled for sale in Vietnam from the first quarter of this year.

These include 18 new commercial vehicle models ranging from 500 kg to 40 tons, as well as seven new EV models, including a two-seater EV designed to replace traditional two-wheeled motorcycles.

On December 31, 2024, TMT Motors announced the delivery of the first batch of Wuling Bingo cars to the first 500 customers. The first batch consisted of two versions of the Wuling Bingo: the Wuling Bingo 333 and the Wuling Bingo 410. By February 2025, the carmaker is committed to delivering the full number of vehicles that dealers and customers have already ordered.

The Wuling Bingo, a Chinese EV brand, is priced between VND399 million and VND469 million ($18,450). TMT Motors has positioned it in the urban EV segment. Following a successful trial in Phu Yen province, Let’s Go Taxi of Let’s Go An Binh JSC has expanded its services to Binh Dinh and Gia Lai provinces. The taxi company has now placed an additional order for 1,000 Wuling vehicles, including 600 Wuling Minis and 400 Wuling Bingos, for its fleet.

Unprecedented loss in 2024

According to Huu, as part of the company's restructuring efforts, TMT Motors has restructured its foreign supplier network, selected models better suited to the Vietnamese market, and made strategic decisions to reduce surplus staff.

The company has also hired qualified office personnel and recruited 500 skilled workers and technicians in preparation for the new production cycle, set to begin in Q1/2025. The company has restructured its debts, reduced operating and production costs, and cleared out outdated inventory to maintain stable cash flow.

Due to these restructuring initiatives, the chairman admitted that TMT Motors is likely to incur a significant loss in 2024. The company is focusing all its resources on cutting losses, lowering prices, and clearing out inventory accumulated from previous years.

TMT Motors has not yet released its consolidated financial statements for 2024. In the first nine months of 2024, it recorded revenue of VND1,675 billion ($65.88 million), a 15% decrease from the same period last year.

Operating below cost, the firm reported a gross loss of VND32 billion ($1.26 million) and a net loss of VND192 billion ($7.55 million), as compared to a net profit of VND1.7 billion ($66,860) in the same period of 2023.

By the end of Q3/2024, the company had total assets of VND1,283 billion ($50.46 million), down 41% from the beginning of the year, primarily due to a reduction in inventory from VND1,392 billion to VND594 billion ($23.36 million). It had VND18 billion ($708,000) in cash and cash equivalents and VND13.6 billion in held-to-maturity investments.

The company plans to divest from 30.4 Design Consulting, Construction and Mechanical Joint Stocks Company (30.4DESICO). The leadership views this as an urgent action to raise capital for its business operations.

TMT Motors’ leadership reported that by the end of 2024, the factory and sales centers have cut prices and clear most of the inventory accumulated from previous years.

Based on the introduction of new EV models and the collaboration with light-duty truck and medium-duty truck partners like Forland, Cherry, and Sinotruk for production and assembly at TMT, the board of directors has set ambitious business goals for this year.

Specifically, the company aims to sell 8,075 vehicles in 2025, including 1,215 heavy trucks, 3,456 light trucks, and 3,404 electric vehicles. Total revenue (including VAT) is expected to reach around VND4,165 billion ($163.82 million), with a pre-tax profit of VND384.2 billion ($15.11 million). These are record-breaking business targets in the history of TMT Motors.