GSS Energy's wholly-owned subsidiary, Giken Sakata, has entered into a JV with GPCC Korea to establish I-Motor Asia.

bike9.18Electric scooter ISO will be launched in Thailand and Vietnam by the JV by end-2018. 
Photo: Company 
GPCC Korea is a leading manufacturer of electric two-wheelers, three-wheelers and four-wheel low speed electric vehicles. 

I-Motor Asia will be working with Giken’s precision engineering facilities in the manufacturing and assembling of both gasoline and electric models in the 125cc and 150cc categories and three-wheelers (“tuk-tuk”) in South East Asia markets, India and Taiwan.


NextInsight had an email Q&A with GSS Energy: 

Q: What parts (of vehicles) will GSS be manufacturing?

batam11.17Batam factory of GSS Energy produces precision parts for electronic goods, etc. NextInsight file photo.A: GSS will first focus on the assembly of the vehicles as well as parts that our factories can produce. 

Q: Will all of these parts be produced in GSS' Batam plant? Or in your China plant as well?
A: At this point, they will be produced at our Batam factory focusing on the Southeast Asia markets. 

GSS Energy

Share price:
12.5 c

Target: 
22 c

Source: RHB Research

Q: What parts will not be produced by GSS?
A: The main parts will initially be outsourced/procured until critical mass is reached.
 

Q: What are the production targets for vehicles in 2018, 2019 and 2020?
A: At this point, we do not want to give a forecast.

Q: What would be the top 3 markets for the vehicles? Starts with Indonesia?

A: Thailand, Vietnam and India will be the first 3 markets for us to look at.

Q: What's the expected revenue and profit from this vehicle JV for this and next year?

A: At this point, we do not want to give a forecast.

Stock price 

12.5 c

52-week range

12-19 c

PE (ttm)

23

Market cap

S$62 m

Shares outstanding

496 m

Dividend yield (ttm)

--

1-yr return

-21% 

Q: What core competence is needed that the JV partners do not have. How do they plan to acquire it?

A: Our JV was established on the partners’ complimentary expertise and skillsets.  Our core competence has always been:

(i) manufacturing and assembly capability & efficiency, having operated on Japanese standards.

(ii) Our more than a decade of technical innovations and design competence in the electric vehicles space, with Italian, Japanese & Korean experience &

(iii) being able to tap on a well-known global brand name that spells quality, efficiency and prestige.

We are now building up the distribution network to complete the competency.

Q: For GSS Energy, this diversification will shift management attention away from its current precision engineering (PE) and oil & gas segments. What is the potential impact?

A: The diversification fits well within the PE structure and its business development strategy. Existing PE business will not be affected. This will be an add-on to the operation. 

There are no effects on the oil and gas business as their operations are operated independently of the PE business.


You have no rights to post comments

Share Prices

Counter NameLastChange
AEM Holdings3.6900.080
Avi-Tech Electronics0.2750.025
Best World1.770-
Broadway Ind0.090-
China Sunsine0.420-
DISA0.003-
Food Empire0.955-0.010
Fortress Minerals0.360-
Geo Energy Res0.230-
Golden Energy0.9600.005
GSS Energy0.0440.005
InnoTek0.435-0.005
ISDN Holdings0.4300.015
ISOTeam0.0800.002
IX Biopharma0.081-
Jiutian Chemical0.056-0.001
KSH Holdings0.3300.005
Leader Env0.0860.004
Medtecs Intl0.149-
Meta Health0.015-
Nordic Group0.4600.010
Oxley Holdings0.1240.001
REX International0.166-0.002
Riverstone0.595-0.005
Sinostar PEC0.1570.004
Southern Alliance Mining0.780-
Straco Corp.0.470-
Sunpower Group0.310-0.015
The Trendlines0.099-
Totm Technologies0.083-
UG Healthcare0.159-0.003
Uni-Asia Group0.9000.010
Wilmar Intl3.970-
Yangzijiang Shipbldg1.270-0.030

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 245 guests and no members online