HoonSmart.com >> Who made the proper prediction? “Nex Level” (NEX) plunges 65% from 1-23 Might, a significant shareholder is pressured to promote Analysts minimize revenue forecasts Thanachart Securities dropped the respective worth sharply to 4.50 baht from the unique 15 baht , anticipated revenue as excessive as 1,355 million baht Lately, Subsequent signed an MOU with DAYUN to completely manufacture and distribute Mini SUVs in Thailand.
On Might 23, 2024, NEX inventory worth continued to plunge through the day, reaching a low of two.86 baht earlier than rising to shut at 3.16 baht, down 0.90 baht or -22.17% with a thick buying and selling worth of 1,934.04 million baht because the begin . In Might (1-23), the value plunged as a lot as 65.27% or 5.94 baht per share from the extent of 9.10 baht on the finish of April 2024. Because of this, massive shareholders who used it as collateral have been pressured to use for a mortgage to purchasing shares (overflow) to promote (Promoting Power), together with analysts who needed to decrease their revenue estimates and goal costs.
Thanachart Securities downgraded its advice on NEX shares from “Purchase” to “Maintain” and minimize its revenue forecast by 38%, 58%, and 60% throughout 2024-2026, together with reducing its goal worth to 4.50 baht beforehand on for 15 baht
The reason being the disappointing internet revenue from Q1/2024 and likewise beginning to see rising uncertainty. from prospects not throughout the firm’s group After nearly all of gross sales in 2023 will come from bus companies operated by firms within the group Together with the decline in demand for industrial electrical automobiles (CEV) available in the market, assumptions gross sales diminished to 2,000 automobiles per 12 months in 2024-2026 from authentic estimates of three,000 automobiles, 4,000 automobiles, and 4,500 automobiles in accordance with worth competitors within the trade dangers of a downward development in electrical car costs all around the world. This may occasionally have an effect on NEX’s revenue margin and account receipts, which elevated to five,600 million baht within the first quarter from 2,200 million baht within the earlier quarter. This exhibits that almost all of gross sales at first of the 12 months haven’t been paid in full.
Nevertheless, the share worth has fallen to 12 occasions PE in 2024, reflecting Thanachart Securities’ new development estimates.
“NEX’s inventory worth fluctuated extensively after the announcement of first quarter earnings in reference to info from the SEC Workplace. On the finish of March 2024 discovered that the focus of shares within the margin account was excessive, specifically 401 million shares or 19.8% of the overall shares. He wonders if he’s being pressured to promote shares used as collateral. This can be the principle motive why the inventory worth fell sharply. Though the value has recovered considerably However we imagine {that a} excessive focus ratio remains to be a threat of great worth fluctuations sooner or later,” stated Thanachart Securities.
Past Securities, an organization within the NEX group, maintains a BUY advice at a base worth of 17.8 baht It thinks NEX could be very attention-grabbing. Primarily based on 1) buying and selling at 6.1 occasions this 12 months’s estimated P/E, in comparison with 20-30 occasions P/E for comparable international EV averages, 2) sequentially stronger quarterly internet revenue development of Bt49mn within the 1st quarter/ 2024 to 100 million baht within the 2nd quarter, 600 million baht within the third quarter and 700 million baht within the 4th quarter, based mostly on orders for protected electrical automobiles to be delivered within the subsequent quarter and three) development tendencies when it comes to manufacturing Gross sales Certain long-term EV. to Absolute Meeting (AAB), a producing facility owned by NEX (40%) and EA (60%).
“Awaiting a long-term sale settlement to finish the low share worth. After the inventory worth rose final week, the NEX inventory worth dropped considerably once more right now. As buyers are very involved concerning the important EV earnings development prospects, we imagine that buyers will should be affected person in order that NEX can preserve its secure gross sales promise within the quick and long run. For buyers to regain confidence in revenue development once more,” Past Securities stated.
From fox looking to hibernation gross sales technique, beginning June 24, NEX is anticipated to vary its manufacturing and gross sales technique to concentrate on high-volume, medium-margin “demand” is outpacing high-volume, low-volume industrial self-driving electrical car gross sales. Within the months of June-July The entire variety of protected upcoming industrial EV orders will probably be 3,000-5,000 items this 12 months, with annual orders 40,000-60,000 Orders will probably be based mostly on 5-10 12 months contracts.
The explanations for the stumbling of NEX’s internet revenue within the interval 2023-1/2024 have been disruptions in manufacturing (through the 40% AAB manufacturing facility owned by NEX), advertising (delays of greater than 1,000 e-buses) and gross sales (Promote) . New electrical car orders delayed) Nevertheless, the NEX technique is on a U-turn. by altering course By collaborating with many companions in 2024, together with 1. On February twenty fourth, the introduction of an digital truck to Amphon Meals. 2. Final March, tractors have been bought to the PTTGC subsidiary, GC Advertising & Procurement 3. April – the top of the 12 months a 423kWh electrical tractor was delivered to Montri Transport. which is a key logistics subcontractor to Tipco Asphalt (TASCO).
Up to now, NEX has efficiently repurchased 26,277,700 shares, representing 1.3% of the overall shares. With a complete worth of 252.08 million baht, which isn’t greater than the unique most share repurchase finances of NEX introduced on 10 November 2024.
Bualuang Securities sees NEX shares buying and selling at a 2024 PE of 25.2 occasions, seeing that Thailand’s transition to industrial electrical automobiles remains to be an necessary development. However we have to look forward to extra info on NEX’s development prospects earlier than revising our steerage and worth goal. After Q1, Q1 internet revenue was decrease than anticipated at 184 million baht, primarily because of decrease than anticipated gross revenue margin and associated firms reporting losses. Count on a small revenue share in Q2
There’s additionally some uncertainty relating to EV bus transportation to Thai Smile. has lowered its assumption of electrical car deliveries this 12 months to only 3,000 items, break up into 800 electrical car pick-ups, 2,200 minibuses and tractors (vehicles), lowering its predominant 12 months revenue forecast. 2024 dropped considerably from 1,367 million baht to 703 million baht.
Mr. Kanis Srivajiraprapa CEO of Subsequent Level Firm revealed that the corporate has signed a memorandum of understanding (MOU) to spend money on establishing a small electrical car or Mini SUV meeting line from DAYUN Firm solely in Thailand. Able to open to sellers to market and promote extra DAYUN automobiles. However the inside is spacious There are fashionable amenities. It additionally has unbiased suspension with 4-wheel springs to extend highway traction effectivity. It’s anticipated that the launch worth will probably be lower than 490,000 baht to penetrate the market of scholars and full-time employees.
DAYUN Group Firm is a Chinese language firm. which primarily focuses on the manufacturing and meeting of economic automobiles It has began producing small electrical automobiles. Inexpensive worth, capable of promote greater than 20,000 automobiles, at present registered capital of greater than 5,000 million baht This cooperation will primarily concentrate on the manufacturing and meeting of Mini SUVs, with the intention of specializing in the ECO CAR group in Thailand final. There are nearly 100,000 registered automobiles.
“NEX is a pacesetter within the industrial electrical car market. We concentrate on batteries and upkeep. This initiative to enter the small financial electrical car market along with DAYUN will assist increase the group’s electrical car manufacturing base. Together with breakthrough new markets to additional strengthen the group of firms. It additionally helps Thailand to enter the Inexperienced Society sooner Presently, the corporate has already imported prototype automobiles to check run in Thailand. It’s anticipated to have the ability to be imported for distribution throughout the third quarter of this 12 months and can proceed to increase into manufacturing in Thailand. Together with bringing in different fashions of electrical automobiles to strengthen the workforce sooner or later,” stated Mr Kanis.
#NEX #encounters #police #promoting #poison #cuts #earnings #worth #plunged #Thanacharts #goal #baht
