Diamond Equity Research Releases Research Report on EZGO Technologies Ltd. (NASDAQ:EZGO)
April 22 2021 - 9:15AM
Diamond Equity Research, a leading equity research and corporate
access firm with a focus on small capitalization public companies
has released an investment summary report of EZGO Technologies Ltd.
(NASDAQ:EZGO). The report includes detailed information on EZGO
Technologies' business model, services, industry, valuation, and
risks.
The full research report is available here. Highlights from
the report include:
Large Market Opportunity
EZGO is targeting the enormous micro-mobility market driven by
the increasing public adoption of electric bicycles, as well as
China’s implementation of new regulation on e-bikes which presents
massive market opportunity. The global e-bicycle market has
witnessed exponential growth driven by the increasing adoption of
electric bicycles for commercial and personal use, as well as the
expanding EV technology penetration over the last decade. The rapid
development of emerging e-bike sharing, food delivery, and express
delivery industries also expand the demand for e-bicycles and
promote the growth of the micro-mobility market. In addition, the
recent outbreak of COVID-19 further stimulated people’s demand for
e-bicycles with sales exploding globally, as they bring more
convenience and flexibility to transportation while enabling people
to remain socially distanced. The Chinese e-bicycle market is
projected to grow at a CAGR of 65% to 2022, with penetration
increasing from 13% to 44%, as the April 2019's implementation of
the New National Standards on electric bicycles is driving a
historic replacement cycle of almost 90% of the existing electric
bicycles to lighter, more portable lithium-bicycles within 1-3
years, with sales potential of approximately $70 billion. We see
extraordinary business opportunities emerging in the e-bicycle
industry and consider the new regulation a positive development for
Chinese lithium-ion EV players like EZGO which has developed a
strong understanding of the market and appears ready to leverage
this opportunity to gain market share.
Proprietary AI Capacity and Integrated loT
Technologies
EZGO operates as an innovative AI-enabled short-distance
transportation solutions provider in China. The company designs,
manufactures, and sells e-bicycles and e-tricycles, and engages in
the sale of lithium batteries; and the sale, franchising, and
operation of smart charging piles for e-bicycles and other
electronic devices. Unlike most conventional e-bicycle
manufacturers, EZGO is committed to creating an innovative platform
integrating communication, entertainment, and power. The company’s
e-bicycles are equipped with its proprietary smart screen and
advanced AI system, enabling customers to communicate directly to
achieve voice interaction; real-time navigation; driving records;
movie entertainment and other functions. The company has also embed
GPS and Beidou Navigation System in its “Dilang” e-bicycles to
deliver IoT services for customers to learn about the vehicles’
situation through their mobile phones, which enables EZGO to reach
end-users directly after the products are sold, and brings the
company potential opportunity of developing e-commerce business as
its customer base grows. EZGO is ideally positioned to capture
market share with its innovative e-bicycle product and service
ecosystem, its state-of-the-art AI technologies and well-regarded
IoT platform.
Attractive Valuation
It is challenging to value EZGO given its current business is
still in its early stage and the limited number of publicly traded
electric vehicle companies. In our comparable company analysis, we
screened for small capitalization companies within the electric
vehicle industry. We used a blend of these companies to arrive at a
median enterprise value to revenue multiple of 6.36x, compared to
3.70x of EZGO. From our analysis, the company could have its
valuation shift higher more in line with larger public peers such
as NIU Technologies (NIU) trading at premium valuations, contingent
on successful execution by company and continuous expansion of
market share.
Compared to a peer set of direct-to-consumer public electric
vehicle companies, EZGO trades at an unassuming valuation, assuming
management’s ability to execute. Investors need to understand the
risks of investing in China and small capitalization equities, as
such this is intended for high-risk tolerant investors.
About EZGO Technologies Ltd.
EZGO Technologies Ltd. designs, manufactures, and sells
e-bicycles and e-tricycles in the People's Republic of China and
internationally. The company also engages in the sale of lithium
batteries; and the sale, franchising, and operation of smart
charging piles for e-bicycles and other electronic devices. EZGO
Technologies Ltd., formerly known as EZGO IOT Tech & Services
Co., Ltd., was incorporated in 2019 and is headquartered in
Changzhou, Jiangsu, China.
For more information, visit
http://www.ezgotech.com.cn/Investor/.
About Diamond Equity Research
Diamond Equity Research is a leading equity research and
corporate access firm focused on small capitalization companies.
Diamond Equity Research is an approved sell-side provider on
premiere institutional investor platforms including Factset,
Morningstar, and Thomson One. The firm is headquartered in midtown
Manhattan.
For more information,
visit www.diamondequityresearch.com.
Disclosures:
Full disclosures pertaining to this report can be found at the
end of the report and on the Diamond Equity Research website
disclosure section. EZGO Technologies Ltd. has paid for this report
as company sponsored research, which is meant to subsidize the high
cost of creating the report and monitoring the security, however
the views in the report reflect that of Diamond Equity Research.
Diamond Equity Research LLC is being compensated by EZGO
Technologies Ltd. for producing research materials
regarding EZGO Technologies Ltd. and its securities. All
payments are received upfront and are billed for research
engagement. As of 04/22/2021, the issuer had paid
us $11,000 for our services, which
commenced 03/24/2021 consisting of two research
reports. Additional fees may have accrued since
then. Investors need to be aware of the high risk in small
capitalization equities.
Contact:
Diamond Equity Research
research@diamondequityresearch.com
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